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A game-changing acquisition places G6 Energy as a local, non-China alternative in the burgeoning graphite supply chain, bolstered by the high-capacity Kearney Mine.
TORONTO, ON – April 10th 2022 G6 Energy Corp ("G6") proudly announces its acquisition of Ontario Graphite Limited, securing ownership of a critical resource, the Kearney Graphite Mine. This pivotal acquisition aligns with western governments' strategy to secure domestic, non-China supply sources amidst a surge in natural graphite demand, primarily fueled by lithium-ion batteries and energy storage advancements.
"The Kearney Mine is a globally significant 43-101 compliant deposit, and its strategic acquisition is a testament to our commitment to secure a resilient graphite supply chain," said Peter McCague, Chairman, G6 Energy "With lithium-ion batteries containing almost 50% graphite, there's an urgent need to balance the supply chain, where China currently holds 68% control of natural graphite mining and 100% of its processing."
Located less than 300 kilometers from Toronto, the Kearney Mine is poised to quickly meet the rising graphite demand, due to strategic benefits in cost, quality, and logistics. It houses an impressive reserve base of 48Mt and a resource base of 121Mt, as indicated by a 2018 Definitive Feasibility Study (DFS). The report highlights the mine's attractive economics, confidence in capital expenditure estimates, and significantly reduced project risk and cost.
"About US$100M has been invested by previous owners in Kearney, including vital infrastructure and permits," added McCague. "This accelerates the restart and showcases the mine's readiness for rapid production to satisfy the burgeoning graphite anode market, projected to quadruple from $11.9B in 2022 to $50.83B by 2030."
The Kearney Mine, uniquely poised for a restart within 12 months of financing, is the fastest path to production in North America. With the Inflation Reduction Act's significant investment to bring critical minerals supply chains localized, G6 Energy is prepared to support the announced battery capacity in North America and Europe.
Moreover, the high-quality graphite from the Kearney Mine has already demonstrated promising results. "Previous in-battery testing confirmed Kearney's graphite's high purity and near theoretical performance in key metrics," affirmed McCague. "This acquisition positions us to power the future of energy storage and EV production."
G6 Energy Corp, headquartered in Toronto, is an industry leader in the worldwide transition toward sustainable energy, specifically focusing on the essential material production for the rapidly expanding lithium-ion battery market. Upholding a strong commitment to environmental, social, and corporate governance ("ESG"), G6 Energy Corp has strategically placed itself as a robust, non-China dependent source of graphite. Through its acquisition of Ontario Graphite Limited, the company is positioned for a rapid restart of the Kearney Graphite Mine, the fastest path-to-production graphite mine in North America. By leveraging these immense resources, G6 Energy Corp is primed to meet the surging demand for sustainable energy solutions.
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Note: This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any state or jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.