Focus Graphite: Pure Graphite

Graphite is critical to lithium-ion batteries, each EV needs over 100 lbs. Demand now far exceeds supply outside China, and Focus Graphite’s Lac Knife and Tétépiscá projects are positioned to fill that gap. A new $14.1 million Canadian grant backs Lac Knife’s scale-up, with recent third-party tests showing its graphite can boost LFP cathode density by 26%. U.S. labs confirmed parity with top synthetics, paving the way for commercial deals.

Battery demand extends beyond EVs to e-bikes, buses, and energy storage. Graphite use per battery far outweighs lithium, and shortages could slow decarbonisation. Focus’s scalable, high-purity graphite strengthens North America’s supply chain for clean energy and tech industries.

China dominates global graphite processing, controlling over 90% of supply. With no active graphite mines in the U.S., Canada’s Lac Knife project fills a strategic gap as demand grows from automakers and defense sectors. Focus Graphite’s new $14.1 million federal grant supports the development of Canada’s first electrothermal purification facility, aligning with G7 and NATO priorities for secure critical minerals.

Graphite is vital for next-generation defense materials, from drones to radar and armor. Natural graphite outperforms synthetic alternatives on conductivity, cost, and emissions, making it key for high-volume use. Canada’s 2035 EV mandate heightens urgency. Focus’s patent-pending silicon-enhanced graphite improves battery performance and adds IP strength. Recent government funding, including up to $300K through IPON, accelerates commercial testing and prototype validation. With Quebec’s clean hydropower and infrastructure, Focus Graphite is positioned to deliver low-carbon, ESG-compliant supply across EV, defense, and advanced-tech markets.

Lac Knife graphite now achieves over 99.9% purity, validated through thermal purification, positioning Focus for high-value nuclear applications where natural graphite can sell for up to US$35,000 per tonne. This milestone makes Focus one of North America’s few contenders in the ultra-high-purity segment once dominated by synthetics.

Focus’s breakthrough opens new markets in nuclear, SMRs, aerospace, and defense, where purity, scalability, and domestic sourcing matter most. If ongoing EBC and scalability tests stay on track, commercial entry could follow. No halogen gases used, marking an environmental advantage and cleaner process. This strengthens Focus’s appeal in next-generation nuclear and fusion projects, combining purity, sustainability, and reliability into a defensible competitive moat.

• Completion of the ESIA Study for Lac Knife: Expected by end-2025, is essential to securing full provincial permitting and initiating site-level activities.

• G7-backed funding secured: Canada’s Global Partnerships Initiative has conditionally approved up to $14.1M (C$14.1M) in non-repayable funding to build the country’s first electrothermal purification facility. This materially strengthens Focus’s balance sheet and de-risks the project.

• Phase I battery validation passed: Independent U.S. labs confirmed Lac Knife graphite matches top synthetic materials, achieving near-perfect battery performance (~371 mAh/g). The material is now moving to Phase II large-cell testing, a key step toward commercial deals and OEM qualification.

• Initial shipments of battery-grade samples from Lac Knife: Completed in July 2025 these shipments have triggered third-party qualification testing by prospective U.S. offtake partners, with results expected to influence commercial negotiations and potential offtake agreements in the near term.

• Phase II pouch-cell validation underway: C4V has begun large-format testing after Phase I confirmed near-theoretical battery performance (~371 mAh/g). Parallel work with AETC aims to confirm scalability and strengthen prospects for commercial offtake.
  
  

• Geometallurgical Flake Characterization Studies: Will help refine metallurgical flowsheets and tailor products to target end-use markets including EVs and defense.
  
  

• An updated Mineral Resource Estimate (MRE) at Tétépisca: Anticipated in mid/late 2025, will convert inferred resources to indicated and improve project economics.
  
  

• Strategic offtake, partnership, and JV discussions: On going and could materialize in mid/late 2025, serving as catalysts for project financing and derisking.

• Issuance of patents: For Focus’s silicon-enhanced spheroidized graphite in the US, Canada, Europe, and South Korea is expected across 2025–2026. New IPON grant funding up to $300K will help accelerate IP milestones and commercialization.
  

• Commercial rollout of downstream applications: Including next-gen aerospace and defense components like the Dash 8 rocket platform with Pluto Aerospace, could begin post-2026 as customer validation and manufacturing scale-up are achieved.

Final permitting for Lac Knife is in progress, with full provincial approval expected by end-2025. The project’s C$236.5M ($171M) capital cost remains unfunded, and financing terms must still be finalised. Any delay in environmental review or stakeholder consultation could slow construction and weigh on investor sentiment. Policy or ESG shifts at provincial or federal levels could extend timelines or alter project conditions. Given limited cash reserves, Focus must manage timing carefully to avoid dilution or interim funding stress.

Focus Graphite’s 5N purity milestone is validated, but commercial certification is ongoing. Tests for boron concentration and particle uniformity must still meet nuclear and defense customer standards. These sectors have long qualification cycles and strict safety protocols, which may delay revenue recognition. Further refining or cost adjustments may be needed as testing expands. Until offtake or certification is secured, Focus remains pre-commercial in nuclear markets. Even with high lab results, failure to scale or meet consistency targets could favour established synthetic suppliers.

Graphite pricing remains opaque and unregulated, with wide variation by purity, size, and end-use. China still dominates production, and new entrants in Africa or Australia could pressure margins. Supply competition and limited pricing transparency make forward planning difficult. Focus must sustain premium quality to justify pricing amid growing supply and new battery chemistries like silicon and sodium-ion. Any shift in demand mix or market overcapacity could challenge margins and delay offtake contracts.