KEY POINTS
- Titan plans a graphite plant on 97 acres in Alabama.
- The lease could run for up to 100 years.
- US Army may buy up to 10% of annual output.
Titan Mining has signed a preliminary agreement with the US Department of the Army to develop a graphite processing facility at an Army depot in Alabama, as the United States works to strengthen domestic supplies of critical minerals.
The Canadian mining company said its subsidiary, Empire State Mines, reached the agreement with the Army on commercial terms for the proposed facility at Anniston Army Depot.
The project is expected to support US efforts to expand domestic processing of graphite, a critical mineral used in defense equipment, batteries and several industrial applications.
Graphite plant planned for Army property
The proposed facility would be built on about 97 acres of underutilized Army property at Anniston Army Depot in Alabama.
Under the preliminary term sheet, Empire State Mines would take responsibility for developing, financing, constructing, owning and operating the facility.
The arrangement would give Titan long-term access to the site and provide a potential base for processing graphite within the United States, reducing reliance on overseas processing capacity.
The proposed lease would initially run for 50 years, with two additional 25-year renewal options. If all renewal options are exercised, Titan could have operating rights at the site for as long as 100 years.
Facility to produce battery-grade graphite materials
Titan plans to produce Purified Micronized Graphite, or PMG, at the facility. PMG is used across industrial and defense applications and can also serve as a feedstock for battery materials.
The company plans to eventually add production of Coated Spherical Purified Graphite, known as CSPG. The material is a key component of lithium-ion battery anodes and is increasingly important as the US seeks to build a domestic battery supply chain.
The proposed production mix would therefore position the facility to serve multiple markets, including defense, energy storage, electric vehicles and industrial manufacturing.
US seeks to reduce dependence on China
The agreement comes as Washington steps up efforts to develop domestic supply chains for critical minerals and reduce dependence on foreign processing.
Graphite is particularly important because of its role in lithium-ion batteries and defense-related applications. Processing capacity has historically been concentrated outside the United States, creating supply-chain concerns for American manufacturers and government agencies.
Titan’s proposed Alabama facility could therefore become part of a broader effort to establish more domestic capacity for processing strategically important minerals.
Army gets first opportunity on some output
The preliminary agreement also includes provisions that would give the US Army a right of first offer on certain graphite products produced by the facility.
The right would apply to uncommitted PMG and CSPG production and would be capped at 10% of the facility’s annual output.
The arrangement could give the Army greater access to domestically processed graphite for defense-related needs while allowing Titan to sell most of its production to commercial customers.
The agreement remains preliminary, meaning additional steps and final agreements will be required before the project moves into full development.
