Northern Graphite seeks C$10 million to expand Lac de Iles mine
China's export controls on graphite increase supply uncertainty
Northern Graphite says if it receives funding the mine could be in production for another 8 years
By Divya Rajagopal
May 1 - Canadian miner Northern Graphite 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 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 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.
(Reporting by Divya Rajagopal in Toronto; editing by David Evans)
((divya.rajagopal@thomsonreuters.com, Cell- +1 (647) 262-8751 ))
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