Focus Graphite: Pure Graphite

Graphite is essential to lithium-ion batteries, with each EV needing over 100 pounds of it. Demand is expected to outpace supply as automakers and battery producers look to secure reliable sources outside China. The Lac Knife and Tétépisca projects are positioned to meet this need for North America. In September 2025, third-party data confirmed Lac Knife graphite can increase LFP cathode density by 26%, a breakthrough for battery makers. Demand is expected to outpace supply as automakers seek reliable, high-performance sources outside China. Focus’s pilot run also improved recovery of large, high-purity flakes, broadening potential markets and strengthening the commercial case.

Battery demand is not just driven by passenger EVs. Buses, e-bikes, grid-scale energy storage, and portable electronics also contribute to growing demand. Unlike lithium, which gets media attention, graphite is required in far greater volume per battery. As such, a shortage in graphite could constrain broader decarbonization goals. Focus Graphite’s capacity to scale high-quality anode material could help de-risk supply chains across multiple industries.

China controls over 90% of processed graphite supply. With no operational graphite mines in the U.S., Canada is uniquely positioned to help bridge the strategic shortfall. Focus’ projects, particularly Lac Knife, align closely with rising NATO and G7 defense budgets, as highlighted in The Hague’s recent report identifying graphite as one of the most at-risk critical minerals. This position was reinforced in August 2025, when Lac Knife graphite was validated in Pluto Aerospace’s Dash 1 hypersonic rocket launch, underscoring its defense and aerospace relevance.

The nature of modern warfare is evolving. drones, radar suppression, stealth technology, and lightweight armor increasingly depend on advanced materials like graphite. Natural graphite has distinct advantages over synthetic: it offers better thermal conductivity, a lower environmental footprint, and more favorable cost dynamics for high-volume use.

Canada’s EV mandate for 2035 adds another layer of urgency, as the country lacks sufficient upstream supply to meet its electrification goals. Focus also brings a commercial edge through its patent-pending silicon-enhanced graphite, a next-gen material that improves battery energy density and presents a major licensing opportunity with cell manufacturers. New IPON funding of up to $300K further accelerates battery innovation and IP development. The technology’s novelty has already been recognized by international patent authorities, reinforcing its IP strength.

Combined with Quebec’s abundant hydropower, established infrastructure, and investor-friendly regulation, Focus Graphite is strategically placed to offer secure, scalable, and ESG-aligned supply for critical end markets.

Focus Graphite's Lac Knife material has achieved 99.9992% purity through thermal purification alone, positioning it for use in nuclear applications. This opens a premium market segment where natural graphite can command up to US$35,000/tonne. It also makes Focus one of the very few North American players with potential access to this ultra-high-value downstream segment. Nuclear-grade graphite has been the domain of synthetic materials, but Focus’s breakthrough opens a new era where natural graphite can compete. If subsequent testing confirms EBC suitability and scalability, Focus could unlock multi-billion-dollar opportunities in nuclear, SMRs, aerospace, and defense, areas where reliability and domestic sourcing are paramount.

Importantly, this purity was achieved without using halogen gases, marking an environmental step forward and setting Focus apart from synthetic competitors. This could allow Focus to target end-markets where performance, purity, and sustainability intersect, such as nuclear reactors, fusion technology, and military hardware. It’s not just a market opportunity, it’s a moat.

• Completion of the ESIA Study for Lac Knife: Expected by end-2025, is essential to securing full provincial permitting and initiating site-level activities.
  
  

• Submission and review progress of multiple grant funding applications: With up to $300K in IPON funding already secured to support patent-pending battery tech R&D and pilot programs including CMIF, Defense Production Act (U.S.), and Global Partnership Initiative, could provide significant non-dilutive capital starting in 2H 2025.
  
  

• Release of results from C4V’s validation program: C4V validation confirms 26% cathode density gain (Sept 2025), opening new partnerships and premium market negotiation

• Initial shipments of battery-grade samples from Lac Knife: Completed in July 2025 these shipments have triggered third-party qualification testing by prospective U.S. offtake partners, with results expected to influence commercial negotiations and potential offtake agreements in the near term.

• Certificates of Analysis for both Lac Knife and Tétépisca: Further large-format tests with C4V underway; positive next steps could de-risk scale-up and offtake negotiations.
  
  

• Geometallurgical Flake Characterization Studies: Will help refine metallurgical flowsheets and tailor products to target end-use markets including EVs and defense.
  
  

• An updated Mineral Resource Estimate (MRE) at Tétépisca: Anticipated in mid/late 2025, will convert inferred resources to indicated and improve project economics.
  
  

• Strategic offtake, partnership, and JV discussions: On going and could materialize in mid/late 2025, serving as catalysts for project financing and derisking.

• Issuance of patents: For Focus’s silicon-enhanced spheroidized graphite in the US, Canada, Europe, and South Korea is expected across 2025–2026. New IPON grant funding up to $300K will help accelerate IP milestones and commercialization.
  

• Commercial rollout of downstream applications: Including next-gen aerospace and defense components like the Dash 8 rocket platform with Pluto Aerospace, could begin post-2026 as customer validation and manufacturing scale-up are achieved.

While Lac Knife material has reached 5N purity, additional tests such as Equivalent Boron Concentration (EBC) and detailed particle analysis are needed before nuclear customers can fully qualify the material. There's also uncertainty over how broadly the product can meet different nuclear customer specs. End-users in the nuclear sector have stringent requirements and long validation cycles, meaning commercial uptake could take time. There’s also a risk that additional refining or modifications may be required, impacting costs. Until Focus can secure offtake or certification from end-users, the nuclear market remains a compelling but unproven commercial channel.

In addition, qualification doesn’t guarantee demand. Nuclear buyers often require long-term relationships, logistics infrastructure, and large-scale consistency. If Focus cannot meet uniformity or scalability targets, even with high lab results, it may lose market share to synthetic competitors with existing contracts and proven processes.

Focus is nearing the end of its mine permitting process at Lac Knife but must still clear regulatory and stakeholder hurdles before construction can begin. The project’s capital costs are estimated at C$236.5M, and financing arrangements have yet to be finalized. Delays could impact the timeline and economics. Permitting complexity in Quebec includes environmental assessments, First Nations consultation, and public engagement. A delay in any one of these streams could push the development timeline, impacting investor confidence and requiring interim funding. Moreover, financing in the junior mining sector is highly cyclical, and Focus may need to time its capital raise carefully to avoid dilution.

There’s also a risk that ESG-related criteria or permitting standards evolve before the project is fully approved. Local political shifts, community opposition, or changes to federal mineral policies could extend permitting timelines or introduce unexpected conditions. For a company with limited cash reserves, this could present a material financial challenge.

Graphite markets are complex, with pricing segmented by flake size, purity, and end-use. While demand is rising, China remains dominant in production. New supply from other geographies and volatility in battery and nuclear end-markets could pressure margins. As more players enter the graphite sector, particularly in Africa and Australia, competition for offtake agreements may intensify. Additionally, pricing for graphite products is opaque and not traded on open markets, making margin planning difficult. Shifts in battery chemistries or technological disruption could also affect long-term demand forecasts.

Graphite's pricing volatility is compounded by the growing bifurcation between high-purity and commodity segments. Focus must continually invest in processing and quality control to ensure its product remains premium. If industry overcapacity emerges or battery chemistry pivots (e.g., silicon anodes, sodium-ion), Focus may face demand risk for specific grades or mesh sizes.