Northern Graphite to restart mill, hike prices

Northern Graphite (TSXV: NGC; US-OTC: NGPHF), the continent’s only flake graphite producer, plans to restart its Lac des Iles mill in Quebec next Monday and raise prices for the battery metal.

After a scheduled maintenance shutdown began Nov. 2 as stated in October, the company told The Northern Miner by email on Tuesday it’s continuing plans to double output to around 25,000 tonnes a year. 

“We made headway toward that goal during 2024 before deciding to implement the maintenance and repair shutdown, and expect to continue to work toward that goal when mill operations resume,” company spokesperson Pav Jordan said. “The company began permitting in the fourth quarter of 2024 to open a new pit in 2025 and we continue to work toward that.”

Shares in Northern Graphite jumped by 14% in Toronto to close on Tuesday at 16¢ apiece, valuing the company at $21.6 million.

Northern Graphite “negotiated significant price increases with customers for its graphite for 2025 to reflect rising costs of production and inflation,” the company said in a release. It didn’t give figures, as they’re sensitive information. 

Price increases

Producers were selling battery grade graphite for US$5,329 per tonne last May but prices could increase to between US$8,707 and US$10,874 this year, according to S&P Global Market Intelligence. The graphite market is conducted in one-to-one deals rather than in an open process like gold.

“We are starting the year with a strong order book, reflecting continued robust demand as well as recent geopolitical events and supply chain concerns,” CEO Hugues Jacquemin said in the release.

The company is banking on electric automakers sourcing graphite outside of China, as in guidelines for United States government funding established under the Biden administration.

China, the leading producer of graphite used in electric vehicle batteries, said in 2023 it was curbing exports of the material.  

New pit

In October, Northern Graphite said it planned to open a new pit early this year and double output from around 10,000 to 15,000 tonnes a year.

Northern Graphite supplies anode material for lithium-ion batteries and EVs, fuel cells and graphene, as well as advanced industrial technologies, the company says. Its battery materials division, which has a state-of-the-art laboratory in Frankfurt, leads a mine-to-battery strategy.

The division is focused on developing advanced anode materials to improve the cycle life and charging rate of lithium-ion batteries, and on marketing Northern’s licensed, patented Porocarb® product, it said.

The company also owns the Bissett Creek project in Ontario and the fully permitted Okanjande graphite mine in Namibia, which is currently on care and maintenance.