Northern Graphite's gamble to free the West from Chinese graphite

At first glance, graphite seems pretty unremarkable to the average person. But according to Hugues Jacquemin, CEO of Canadian company Northern Graphite, this unassuming element is set to become one of the most strategic materials of the decade. "There will be no energy transition without graphite. It is not just a raw material: it is a vital component of electric batteries, energy storage and even the defence industry," he says. At the heart of this ambition is the Okanjande project in Namibia, a former open-pit mine that Northern Graphite is preparing to reopen to supply a Western graphite supply chain.

Hugues Jacquemin, CEO of Northern Graphite

From Canada to Namibia

Northern Graphite already controls the only active graphite mine in North America, Lac des Îles (LDI), located in Quebec, with annual production between 10,000 and 15,000 tonnes: "This is our foundation. It allows us to supply industrial customers now and lay the groundwork for our mine-to-battery strategy. " To sustain its business, the company is seeking C$10 million to expand the mine and prevent the deposit from being depleted by the end of the year.

Another Canadian project is Bissett Creek in Ontario, which could start production in less than two years. With its high-quality graphite, this deposit has everything it takes to attract investors. ‘We are in discussions with federal, provincial and even international agencies. This project is ready to take off as soon as the financing is in place.’

The Lac des Îles mine in Quebec, the only active graphite mine in North America

But Northern Graphite is also banking on the Okanjande project in Namibia: ‘It is our strategic pillar for offering a credible alternative to Chinese dependence,’ says Hugues Jacquemin. Located in a politically stable country with efficient logistics infrastructure and direct access to the port of Walvis Bay, the Namibian mine is an ideal gateway to European and North American markets.

Closed since 2023, the mine is expected to resume operations by 2027. ‘We have an unrivalled asset: the ability to ramp up production quickly and profitably. This allows us to reduce time to market compared to other competing projects,’ he emphasises.

The plan is ambitious: to transport the graphite extracted from Okanjande to two battery anode material processing plants, one in France and the other in Quebec. The objective is clear: to secure the electric battery value chain outside China, which controls more than 90% of global processed graphite production.

Two plants, one strategic vision

Northern Graphite's vision is part of an integration of the graphite value chain. The Canadian company wants to build an anode material plant in France, recognised as a strategic project by the European Union under the Critical Raw Materials Act. A decisive turning point, according to Jacquemin: ‘This designation is a game changer. It gives us access to public funding, strengthens our credibility and speeds up our timelines.’ The investment amounts to more than €150 million.

The factories could eventually power millions of electric vehicles. In terms of financing, the project could benefit from an industrial tax credit from the French Ministry of Economy, covering up to 45% of the amount invested.

Across the Atlantic, the Baie-Comeau plant in Quebec is still awaiting a crucial decision: the allocation of an energy quota by Hydro-Québec. ‘We are caught in a chicken-and-egg situation: we need customer commitments to obtain electricity, but without electricity, it is difficult to obtain these commitments,’ he acknowledges. But here again, geopolitics comes into play. ‘Baie-Comeau could become the hub for graphite exports to Europe, thanks to its geographical location and the support of the port of Rotterdam.’

Financing Western independence in graphite

But the challenge is also financial. Dependence on Chinese graphite has deterred many Western investors. ‘Prices have remained low because of a market unbalanced by China. But the tide is turning. Decision-makers are beginning to understand what we have been saying for years: there can be no energy transition without graphite.’

Northern Graphite is therefore stepping up discussions with governments, sovereign wealth funds, industrialists and even car manufacturers. Jacquemin remains discreet, but admits: ‘Outside China, I can count on one hand the major battery or car manufacturers with whom we are not talking.’

For Hugues Jacquemin, the geopolitical context gives his projects a much broader scope. ‘It's no longer just a question of price or competitiveness: it's a question of industrial sovereignty. Trade tensions between the United States and China have put critical minerals, and graphite in particular, at the centre of Western industrial policies,’ he says.

‘In five to ten years, we will be one of the largest producers of natural graphite outside China, with a major presence in anode materials,’ says Hugues Jacquemin, CEO of Northern Graphite.

According to the USGS Geological Survey, in 2023 the United States imported approximately 84,000 tonnes of graphite, mainly from China, which accounted for half of its imports. Northern Graphite aims to address this critical dependency. The Namibian mine could thus play a geostrategic role. ‘The West is realising that its dependence on Chinese graphite is a major vulnerability. By relaunching Okanjande, we are providing a tangible solution to this challenge.’ Northern Graphite's strategy is clear: to build an integrated graphite production and processing network to meet the critical needs of the West.

With the United States imposing tariffs on Chinese graphite and Europe deploying its own supply security mechanisms, the Canadian company intends to embody this new strategic autonomy. ‘The world is waking up. It understands that the energy transition can only happen by controlling the value chains. And we are ready.’