Focus Graphite: Pure Graphite

Graphite remains essential to lithium-ion batteries, with each EV requiring more than 100 lbs, and global demand now rising faster than non-Chinese supply can keep up. Focus Graphite’s Lac Knife and Tétépisca projects sit squarely in that widening gap, supported by a new $14.1 million Canadian grant and a fresh $3.5 million financing boost. Recent third-party tests show Lac Knife’s graphite can lift LFP cathode density by 26%, and U.S. labs have confirmed performance that stands shoulder-to-shoulder with top synthetic materials, putting Focus on stronger footing for commercial discussions.

Battery demand also stretches into e-bikes, buses, grid storage and beyond. Since graphite use per battery far outweighs lithium, supply shortfalls threaten to slow the energy transition. Focus’s scalable, high-purity, and now better-funded graphite strategy strengthens North America’s clean-energy supply chain at a moment when domestic materials matter more than ever.

China still controls more than 90% of the world’s graphite processing, and with zero active graphite mines in the U.S., North America’s supply gap is getting harder to ignore. Lac Knife steps directly into that void as demand from automakers and defense customers expands. Focus Graphite’s $14.1 million federal grant, now paired with the company’s new $3.5 million capital raise, helps advance Canada’s first electrothermal purification facility, a move aligned with G7 and NATO goals for reliable critical materials.

Graphite is essential for next-generation defense systems, drones, radar and armor. Natural graphite continues to beat synthetic options on conductivity, cost, and emissions, making it ideal for large-scale deployment. With Canada’s 2035 EV mandate speeding up adoption, Focus’s patent-pending silicon-enhanced material and expanded funding runway support ongoing testing, prototype validation, and customer trials. Powered by Quebec’s clean hydropower and strong infrastructure, Focus is positioned to deliver a cleaner, domestic, security-friendly graphite supply for EVs, defense, and advanced-tech markets.

Lac Knife graphite now reaches more than 99.9% purity ,validated through thermal purification, putting Focus in the running for high-value nuclear and SMR applications where natural graphite can command up to US$35,000 per tonne. This step makes Focus one of the few North American players capable of competing in an ultra-high-purity segment long dominated by synthetic materials.

The breakthrough unlocks fresh opportunity across nuclear, SMRs, aerospace and defense, where purity, reliability, and home-grown supply matter most. If ongoing EBC and scalability tests continue as expected, Focus could move closer to commercial entry. Because no halogen gases are used in the process, Focus also offers a cleaner, more sustainable pathway for next-generation nuclear and fusion projects, a combination of purity and environmental credibility that forms a more durable competitive edge.

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

• Closing of the new $3.5 million LIFE financing: Expected around early December 2025. A successful close strengthens the balance sheet and gives Focus the cash runway to hit near-term milestones without delays, a key risk reducer for investors.

• 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.