Focus Graphite Executes Funding Agreement for $14.1M under Natural Resources Canada's Global Partnerships Initiative

Core Viewpoint - Focus Graphite Inc. has secured a non-repayable funding agreement of $14.1 million from Natural Resources Canada to enhance its capacity to supply ultra-high-purity graphite for defense, aerospace, and next-generation battery materials [1][2][3] Funding Agreement Details - The funding agreement formalizes federal support for the project aimed at transforming Canadian flake graphite into ultra-high purity materials using advanced electrothermal fluidized bed technology [2][3] - The agreement includes non-dilutive funding covering approximately 73.6% of total eligible project costs, with Focus Graphite contributing $4.8 million in cash and $250,000 in in-kind contributions [8][10] Project Objectives and Impact - The project aims to produce ultra-high purity graphite to meet the needs of global markets in battery, aerospace, defense, and advanced materials [2][10] - The initiative aligns with NATO, G7, and European policy objectives for secure and diversified critical mineral supply chains, reducing reliance on Chinese sources [3][10] Production Capabilities - The demonstration system is expected to produce sufficient volumes of purified graphite for downstream qualification and scalable supply to various markets [4][10] - The project supports the company's downstream strategy by enabling the delivery of high-purity materials for early market entry while advancing mining projects [4][5] Strategic Importance - The agreement enhances Focus Graphite's ability to supply allies with secure, environmentally sustainable, high-purity graphite, addressing strategic vulnerabilities in North American military and energy systems [5][10] - The project is part of a broader effort to establish a North American, sovereign supply chain for critical minerals, enhancing energy security and industrial resilience [10][11]