Malaysian graphite maker Graphjet plans Nevada factory

Malaysian graphite producer Graphjet Technology plans to build a plant in Nevada capable of turning agricultural waste into enough of the critical material to supply 100,000 electric vehicles per year.

The factory, expected to open in 2026, will use materials recycled from as much as 30,000 metric tons of palm kernel sourced from Malaysia to produce up to 10,000 metric tons of artificial graphite. Graphite is an important material in lithium-ion batteries, comprising most of the material in the battery's anode.

The investment comes as EV battery manufacturers and automakers race to secure new supplies of graphite as companies roll out new electric models. The auto companies are attempting to secure enough U.S. supply to meet Inflation Reduction Act requirements for EV incentives.

Companies are also looking for new sources of the material to compensate for China's move in December to restrict some of its graphite exports.

"We are laser-focused on getting our commercial production online as quickly as possible and are in discussions with several players to secure offtake agreements for our planned Nevada facility," Graphite CEO Aiden Lee said in a statement. He called the planned operation a "first-of-its-kind, next-generation graphite production facility."

Graphjet said it plans to spend between $150 million and $200 million on the new facility and employ about 500 people. The company said in a news release that it is "evaluating financing and strategic options to fund the plant."

The company is still determining options for the plant's specific location but said it picked Nevada because of its proximity to a number of automaker and battery manufacturing facilities.

Graphjet said it has a patented process for producing artificial graphite from recycled palm kernel shells made during the production of palm seed oil. The company said it plans to ship hard carbon made from palm kernel shells at its first commercial factory in Malaysia to the Nevada factory.

Lee said the use of palm kernel shells helps to make the production of artificial graphite, typically a very energy-intensive process, more environmentally friendly. He said the company's technology produces less than one-fifth the amount of carbon-dioxide emissions as synthetic graphite sourced from China does.

The market for graphite is expected to grow rapidly. S&P Global forecasts that global demand for anode-active materials, comprised mostly of graphite, in EV batteries will grow to 3,100 kilotons by 2030, up from 790 kilotons in 2023.