Graphex Group Ltd. subsidiary Graphex Technologies LLC recently signed an exclusive non-binding memorandum of understanding (MOU) to establish a joint venture with Emerald Energy Solutions LLC (EES) that will build and operate a new graphite processing plant in Michigan.

The joint venture is currently in the process of selecting a location for the facility in the state, according to a company release. Graphex expects that a final investment decision will be made in March after agreements are reached with state and local governments and agencies.

“The establishment of a US-based facility represents one of many steps in Graphex’s expansion plans,” John DeMaio, president of Graphex’s Graphene division, said in a statement. “While localizing this integral element of the EV supply chain certainly creates commercial opportunity, we are equally pleased to be able to import technological expertise and create well-paying jobs in the US as we support the energy transition at a foundational level.”

Projected to become operational before the end of Q2 2023, the processing plant will have an initial capacity of 10,000 mt/yr of coated spherical graphite used in EV battery anodes. The joint venture will have the ability to ramp up production to 20,000 mt/yr as demand necessitates.

Processed spherical graphite is used as an anode material in lithium-ion batteries for EVs and renewable energy storage.

“Global EV growth creates unprecedented demand for battery materials and graphite continues to be a key material in future battery chemistries. Detroit is positioning itself to be a global leader not only in traditional automobile manufacturing, but also the leader in EV manufacturing,” said EES managing partner David Halabu in the release.

Under the terms of the MOU, EES will handle site assessment and selection, inspections, acquisitions, design, regulatory approval, construction, and mechanical operation of the Michigan plant. The firm will als o be responsible for providing or obtaining funding and capital to purchase, construct, and operate the site. Graphex will supply raw material to the location.

Powder & Bulk Solids also reported this week that a $1 million grant was awarded to the City of Alexander City, AL to provide infrastructure that will support the development of a new graphite processing plant in the Kellyton Industrial Park. Westwater Resources subsidiary Alabama Graphite Products is investing $202 million to open the first large-scale graphite processing plant in the US.