Graphite One has announced the receipt of a non-binding letter of interest (LOI) from the Export-Import Bank of the US (EXIM) for potential debt financing of up to $325m.

The funding will be issued under EXIM’s “Make More in America” and “China and Transformational Exports Program” (CTEP) initiatives.

According to the letter, EXIM’s proposed financing will enable Graphite One to advance its advanced anode material (AAM) manufacturing facility.

Considering the preliminary details provided about US exports and job creation by this project, the potential loan would carry a repayment period of 15 years under the “Make More in America” initiative.

Graphite One CEO and president Anthony Huston said: “Today’s announcement confirms Graphite One’s focus on developing a 100% U.S.-based advanced graphite materials supply chain.

“EXIM’s potential financing, following on G1’s two Department of Defense grants under the Defense Production Act and from the Defense Logistics Agency, underscores the urgent need to bring US graphite supply into production, and end the nation’s 100% foreign dependency.”

Graphite One said that China’s dominance in global graphite production has prompted the EXIM to indicate that the transaction may also be eligible for special consideration under Section 402 of the bank’s 2019 reauthorisation.

This section is aimed at addressing the competitive impact of export support provided by China and other countries, which could benefit Graphite One under EXIM’s CTEP initiative.

Graphite One plans to submit a formal financing application to EXIM in 2025. Following the application, EXIM will undertake due diligence to assess the possibility of issuing a final commitment.

The company aims to make a production decision for the Graphite One project after completing its feasibility study, which is expected in Q1 2025.

As part of its supply chain strategy, Graphite One is developing a US-based graphite supply chain centred on the Graphite Creek deposit, identified by the US Geological Survey as the largest graphite deposit in the country.

The Graphite One project also includes plans for a battery anode and advanced graphite materials manufacturing plant in Warren, Ohio, along with a co-located recycling facility to reclaim graphite and other battery materials.