Core Points - Graphite One Inc. has entered into a Memorandum of Understanding with Lucid Group to form MINAC, aimed at reducing U.S. reliance on foreign critical minerals in the automotive supply chain [1][3] - MINAC was officially launched during a Capitol Hill event, highlighting bipartisan support from various state representatives [2] - The initiative aligns with Graphite One's strategy to establish a 100% U.S.-based advanced graphite materials supply chain, leveraging the Graphite Creek deposit, the largest in the U.S. [4] Company Strategy - Graphite One is developing a complete U.S.-based advanced graphite supply chain, including a manufacturing plant for battery anode materials in Warren, Ohio, and a recycling facility [4] - The company aims to become a leading American producer of high-grade anode materials integrated with domestic graphite resources, primarily for the lithium-ion electric vehicle battery market [6] Industry Context - MINAC represents a partnership among U.S. mineral and automotive producers to enhance domestic supply chains, supporting national security and American energy leadership [5] - The collaboration is expected to unlock billions in investments in mining, minerals processing, and manufacturing of derivative products, significantly reducing reliance on foreign nations [5]

Financial Data and Key Metrics Changes - The company ended the quarter with total cash of approximately $1.6 million [15] - Net loss for the three months ended March 31, 2025, was approximately $8.3 million, or a negative $0.03 per share, compared to a net loss of $5.5 million, or a negative $0.05 per share for the same period in 2024 [19] - Plant operations decreased approximately $1.5 million, or 67.2%, compared to the same period in 2024, primarily due to reductions in payroll and related costs [17] Business Line Data and Key Metrics Changes - The company achieved key technical milestones, including product line expansion with initial samples of nickel carbonate and mixed hydroxide precipitate [4] - A successful engineering analysis and lab demonstration for lithium recovery from LFP batteries was completed, which could double lithium carbonate output [5][6] - General and administrative expenses decreased by approximately $619,000, or 27.2%, primarily due to payroll reductions [18] Market Data and Key Metrics Changes - The company is adapting its strategy to align with current market conditions characterized by lower lithium prices and tighter capital markets [7] - The industry is experiencing a phase of consolidation and increased partnerships as companies navigate challenging market conditions [33][58] Company Strategy and Development Direction - The company is focused on building a low-cost, resilient domestic battery materials supply chain and adapting its product portfolio to market needs [3][11] - A strategic decision was made to sell property to retire debt and generate cash reserves, allowing for evaluation of more cost-efficient locations [7][15] - The company aims to build its first commercial arc while actively engaging with potential supply, offtake, and funding partners [9][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to survive and thrive in the evolving critical minerals industry, emphasizing the importance of adaptability [26][34] - There is optimism regarding future government support for domestic supply chains, although clarity on policy and funding is still pending [42][43] Other Important Information - The company is transitioning leadership with Eric West taking over as CFO, ensuring continuity and stability during the transition [10][12] - The company is actively engaging with potential partners to test the quality of new materials produced [48] Q&A Session Questions and Answers Question: Can you walk me through the Sierra Arc sale process and how much runway it gives you? - Management highlighted that selling the Sierra Arc allows for significant savings and provides meaningful cash runway to develop commercial relationships [26][28] Question: Has there been an uptick in customer inbounds due to recent tariff announcements? - Management noted increased engagement with various industry players as companies seek to navigate the current market dynamics [32][33] Question: Can you discuss the opportunity related to product line expansion and LFP recycling? - Management emphasized that advancements are driven by market responsiveness and optimization to improve plant economics [37][39] Question: What is the status of government discussions regarding domestic supply chains? - Management confirmed ongoing engagement with government agencies, with expectations for more clarity on policy and funding in the coming months [42][43]