*

Says first phase requires $1.43 billion investment

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Production expected to start late 2028

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Canadian government to support funding of the plant,

Vianode

says

By Nick Carey

LONDON, Oct 31 (Reuters) - Norway's Vianode will build a

multi-billion-dollar synthetic graphite plant in Ontario to

supply anode materials for EV batteries and is in talks to

supply defense and energy storage customers keen to find

non-Chinese sources of this critical mineral, it said on Friday.

China controls 95% of the global supply of graphite, which

is vital for electric vehicle battery production.

Vianode said the initial investment for the plant will be 2

billion Canadian dollars ($1.43 billion), which should start

production in late 2028. Planned expansions will bring total

capacity of up to 150,000 metric tons annually by the early

2030s, enough for around 2 million EVs.

CEO Burkhard Straube told Reuters the plant will be funded

by customer agreements, equity and support from the Canadian

government. The announcement came during a meeting of energy and

environment ministers from the Group of Seven hosted by Canada,

as China leverages its grip on critical minerals like rare

earths in trade talks.

SLOWING EV DEMAND DELAYS PRODUCTION

"Canada is proud to support Vianode in advancing critical

mineral development that aligns with our national priorities and

international commitments," Canada's Minister of Energy and

Natural Resources Tim Hogdson said in a statement.

Vianode originally planned to launch production in 2027, but

slowing U.S. EV demand had delayed it, Straube said.

Automakers are backpedaling hard on U.S. EV plans following

the expiration of a $7,500 federal tax credit for EV buyers on

September 30.

In January, General Motors ( GM ) signed a

multi-billion-dollar agreement for Vianode to provide synthetic

graphite anode materials for EV batteries. But on Wednesday GM

said it would cut U.S. EV and battery production and factory

jobs in Detroit and Ohio.

GM CEO Mary Barra had told shareholders last week that EVs

remained the automaker's "North Star."

"We see a slowdown right now in electromobility," Vianode's

Straube said. "But electromobility is here to stay."

He said while most of the talks Vianode is holding are with

automakers, others are focused on defense projects.

"The volume in the defense industry is smaller than other

industries," Straube said. "But the strategic importance of

defense is very, very high."

($1 = 1.4024 Canadian dollars)

(Reporting By Nick Carey; Editing by Emelia Sithole-Matarise)