US-based graphite processing technology developer Urbix has been selected by the US Department of Energy’s Office of Manufacturing and Energy Supply Chains (MESC) for final negotiations for an award of up to $125-million towards the construction of a commercial-scale graphite processing facility using proprietary methods and technologies.

The funds, provided under the US government’s Bipartisan Infrastructure Law, are geared at expanding domestic manufacturing of lithium-ion batteries for electric vehicles and other applications and were subject to a competitive application process.

The Urbix manufacturing facility will produce high-quality coated spherical purified graphite (CSPG), a critical material for lithium-ion batteries, and will create about 200 high-paying full-time jobs and 300 direct construction jobs.

Once complete, the facility will be a part of an integrated and secure graphite anode material supply chain for US-based battery makers.

The overall scope of the project includes the construction and operation of one commercial module capable of producing about 10 000 t/y of CSPG at a facility that may be expanded for additional modules in the future.

The long-term goal is to continue constructing commercial projects strategically located throughout the US to strengthen battery manufacturing and CSPG supply chains, maximise the benefits of the clean energy transition, and reduce reliance on foreign competitors for processed critical minerals.

The project includes a community benefits plan focused on workforce development, employee benefits and opportunities for career advancement in science, technology, engineering and mathematics disciplines tailored to the clean energy sector.

Powered anodes store charge in lithium-ion batteries, representing a critical component of battery manufacturers’ supply chains. China is currently responsible for nearly all CSPG supply and produces more than 90% of anodes globally for lithium batteries.

The project directly aligns with the goals of MESC’s Battery Materials Processing and Battery Manufacturing grant programme to grow a more sustainable, resilient and equitable economy by investing in the domestic battery supply chain.

In October last year, Urbix signed a joint development agreement (JDA) with metals and mining private capital investor Appian Capital Advisory to help fund the development of the commercial-scale downstream graphite processing facility.

As part of the JDA, Urbix’s planned facility will receive a consistent source of high-quality natural graphite concentrate feed from Appian-owned Brazilian graphite producer Graphcoa. This will strategically establish a fully integrated and secure graphite anode supply chain in the Americas to support gigafactories.

“This achievement is a testament to the critical role that our innovative and sustainable processing technology can play in the growth and strengthening of the US’s domestic battery manufacturing capabilities. We are committed to using this grant to accelerate the development of our facility serving as a first step in providing a robust and secure end-to-end supply chain of premium graphite anode material that is vital to the industry’s ambitions,” Urbix founder and CEO Nico Cuevas said on Friday.