Staff report

The company that wanted to build a $435 million manufacturing plant in Trumbull County to produce essential material for electric vehicle batteries has instead chosen to locate in Conneaut in Ashtabula County.

The new location is still within the boundaries of Lake to River Economic Development, which is a private, nonprofit organization and the official JobsOhio network partner for Ashtabula, Trumbull, Mahoning and Columbiana counties.

Graphite One in May 2024 said it was developing project labor agreements with local construction unions and had received letters of support from more than two dozen organizations in Ohio, including universities engaged in technology and workforce development, as well as projects that seek to build-out renewable energy infrastructure in disadvantaged communities.

At the time, company representatives had already met with the Mahoning Valley Manufacturers Coalition, a group of local businesses and education/training partners that focuses on workforce development for manufacturers.

Graphite One, based in Canada, announced in March 2024 that a subsidiary, Graphite One (Alaska), signed a 50-year lease for 85 acres at the former Defense National Stockpile Center on Warren Avenue to build a highly mechanized manufacturing plant to produce graphite anode material needed by EV makers.

It was part of the company’s plan to complete a domestic U.S. supply chain for natural and synthetic graphite material that was nonexistent at the time, with all materials coming from China.

On Tuesday, the company announced in a news release “a significant milestone in its U.S. growth strategy, securing a site for its Active Anode Materials (AAM) facility in Conneaut, while continuing to advance toward development plans and customer qualification.”

The site was secured through a license of occupation agreement with Bessemer and Lake Erie Railroad Company, a subsidiary of Canadian National Railway.

According to the news release, the site provides several strategic advantages, including direct access to Lake Erie and the Great Lakes shipping corridor; multi-line rail connectivity through Canadian National; existing power infrastructure, including an on-site substation; and capacity for future expansion and scaling.

“This site provides the infrastructure, logistics access and scalability required to support long-term growth,” said Mike Schaffner, Graphite One’s chief operating officer. “It positions the company to efficiently move material and expand production capacity as market demand develops.”

The agreement allows the company to complete due diligence activities on the site and, subject to Graphite One’s satisfactory review, proceed with formalizing a lease agreement, Schaffner said.

“Given this new opportunity and the challenges associated with establishing the necessary power infrastructure at the Warren site within the company’s proposed construction timeline, the company has decided to terminate the current lease on the Warren property to focus its efforts on the Conneaut location,” the release states.

CHAMBER RESPONSE

Guy Coviello, president and CEO of the Youngstown/Warren Regional Chamber, said the chamber is “encouraged to see Graphite One continue advancing its investment in the lake-to-river region. This creates many procurement and supply chain opportunities throughout the area, and some of the regional chamber’s members have already had productive conversations with G1.”

Coviello added, “It has been a privilege to work with Anthony Huston, Mike Schaffner, and the rest of the G1 team. Our joint advocacy efforts in D.C. over the past several years are beginning to pay off. We look forward to meeting up with G1 representatives again next month during our annual D.C. Fly-in.

“We continue to move the region forward in the energy industry. In addition to the electric vehicle supply chain, we are now a focal point in energy storage, which is critical for the proliferation of data centers and other aspects of a high-tech economy. Our area is competitive for advanced manufacturing and critical minerals projects. This also underscores the need to keep investing in infrastructure, power capacity and shovel-ready sites as we work with our partners to position the lake-to-river region for long-term growth,” Coviello said.

COMPANY’S PLANS

Graphite One is advancing development plans for an Ohio finishing and blending facility, which is one of the three processing facilities that together comprise the AAM facility with construction completion targeted for the fourth quarter of 2027 and initial production capacity of 10,000 tonnes per year.

Phase One production is expected to include 4,000 tonnes of energy storage material, 3,000 tonnes of fast-charging material and 3,000 tonnes of high-energy-density material, the company’s news release states.

These materials are intended for use in lithium-ion battery applications supporting electric vehicles, grid-scale energy storage, and emerging data center infrastructure demand.

“We now have a defined path from site control through development to production and customer engagement,” said Anthony Huston, Graphite One CEO. “Our objective is to establish a vertically integrated, U.S.-based supply chain capable of supporting long-term North American battery demand.”

Planning for a phase 2 expansion is underway, with construction targeted for completion in the third quarter of 2028 and graphitization capacity of 25,000 tonnes per year, the news release states.

The expansion would further position Graphite One as a potential domestic supplier of active anode materials at a time when North American supply chains continue to seek localized sources of critical battery inputs. Graphite One has delivered commercial-grade anode material samples, including quantities of up to 20 kilograms, to three major electric vehicle manufacturers and three leading battery companies, the release states.

Graphite One’s development strategy links its Graphite Creek resource in Alaska — identified by the U.S. Geological Survey as the largest graphite deposit in the United States and among the largest globally — with downstream processing capabilities in Ohio.

“The company believes this vertically integrated model aligns with growing North American efforts to localize critical mineral and battery material supply chains,” the release states.

Construction and development activities for the Ohio facility remain subject to financing, permitting, power agreements, equipment procurement, regulatory approvals and other customary development conditions, the company stated.