Urbix, a US-based developer of graphite processing technology, has been selected by the US Department of Energy’s (DOE) Office of Manufacturing and Energy Supply Chains (MESC) for final negotiations for an award of up to $125 million towards the construction of a commercial-scale graphite processing facility utilizing its proprietary methods and technologies.

The company’s technology uses a cost-effective, efficient and environmentally friendly approach to producing high-quality Coated Spherical Purified Graphite (CSPG), the predominant anode material used in lithium-ion batteries.

The overall scope of the project includes the construction and operation of one commercial module capable of producing approximately 10,000 tonnes of CSPG per year at a facility that may be expanded for additional modules in the future. The long-term goal is to continue constructing commercial projects strategically located throughout the US to strengthen battery manufacturing and CSPG supply chains, maximize the benefits of the clean energy transition, and reduce reliance on foreign competitors for processed critical minerals.

The planned project site is in Muscle Shoals, Alabama and the facility is expected to create 200 high-paying full-time jobs and 300 direct construction jobs. The project includes a community benefits plan focused on workforce development, impactful employee benefits and opportunities for career advancement in STEM disciplines tailored to the clean energy sector.

China is currently responsible for nearly all CSPG supply and produces more than 90% of the world’s anodes for lithium batteries. The project directly aligns with the goals of MESC’s Battery Materials Processing and Battery Manufacturing grant program to grow a more sustainable, resilient and equitable economy by investing in the domestic battery supply chain.

In October 2023, Urbix signed a Joint Development Agreement (JDA) with Appian Capital Advisory, the leading private capital investor in metals and mining, to help fund the development of the commercial-scale downstream graphite processing facility. As part of the JDA, Urbix’s planned facility will receive a consistent source of high-quality natural graphite concentrate feed from Graphcoa, a Brazilian graphite producer owned by Appian. This will strategically establish a fully integrated and secure graphite anode supply chain in the Americas to support gigafactories.