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Northern Graphite ( NGPHF ) seeks C$10 million to expand Lac de Iles

mine

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China's export controls on graphite increase supply

uncertainty

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Northern Graphite ( NGPHF ) says if it receives funding the mine

could be

in production for another 8 years

By Divya Rajagopal

May 1 - Canadian miner Northern Graphite ( NGPHF ) will put its

Quebec plant under care and maintenance, effectively stopping

production at North America's only graphite producing facility,

by the end of 2025 if the company fails to find funding to

expand, its CEO said.

Although graphite is not traded on commodity exchanges, its

price has crashed by 50% in the last year - in tandem with other

battery metals - due to a slow uptick in electric vehicle sales

and aggressive pricing by dominant producer China.

China which controls at least 70% of the graphite market,

has a monopoly on pricing, industry officials said.

"We're putting a lot of pressure on all stakeholders,

including the government, to help us finance," CEO Hugues

Jacquemin told Reuters.

"We don't want the only producing graphite mine in North

America to be shut down, right, it's like killing the golden

goose," he added.

If the mine receives funding, it could run for another eight

years, Jacquemin said.

Northern Graphite ( NGPHF ) is seeking C$10 million to expand Lac de

Iles mine in the Canadian province of Quebec. The 35-year-old

facility primarily sells to U.S. industrial customers. It

produced 12 thousand metric tons in 2024.

Although Northern Graphite ( NGPHF ) does not supply material to

battery makers, it has still felt the pinch of low commodity

prices.

Even as prices crashed, China continued to tighten its grip

on commodities like graphite, with Beijing's commerce

ministry announcing export controls on graphite sent to the U.S.

late last year.

Jacquemin said that uncertainty and risk associated with

supply from China had caused potential investors to shy away.

However, any disruption to supply could impact U.S. industrial

customers.

"Whether it's investors, government, or banks, we need some

help," he said, adding that once the Quebec plant went under

care and maintenance, the company might not consider restarting

it, shifting its focus instead to its other mine in Africa.