By Nick Carey
LONDON (Reuters) -Norway’s Vianode will build a multi-billion-dollar synthetic graphite plant in Ontario to supply anode materials for EV batteries and is in talks to supply defense and energy storage customers keen to find non-Chinese sources of this critical mineral, it said on Friday.
China controls 95% of the global supply of graphite, which is vital for electric vehicle battery production.
Vianode said the initial investment for the plant will be 2 billion Canadian dollars ($1.43 billion), which should start production in late 2028. Planned expansions will bring total capacity of up to 150,000 metric tons annually by the early 2030s, enough for around 2 million EVs.
CEO Burkhard Straube told Reuters the plant will be funded by customer agreements, equity and support from the Canadian government. The announcement came during a meeting of energy and environment ministers from the Group of Seven hosted by Canada, as China leverages its grip on critical minerals like rare earths in trade talks.
SLOWING EV DEMAND DELAYS PRODUCTION
“Canada is proud to support Vianode in advancing critical mineral development that aligns with our national priorities and international commitments,” Canada’s Minister of Energy and Natural Resources Tim Hogdson said in a statement.
Vianode originally planned to launch production in 2027, but slowing U.S. EV demand had delayed it, Straube said.
Automakers are backpedaling hard on U.S. EV plans following the expiration of a $7,500 federal tax credit for EV buyers on September 30.
In January, General Motors signed a multi-billion-dollar agreement for Vianode to provide synthetic graphite anode materials for EV batteries. But on Wednesday GM said it would cut U.S. EV and battery production and factory jobs in Detroit and Ohio.
GM CEO Mary Barra had told shareholders last week that EVs remained the automaker’s “North Star.”
“We see a slowdown right now in electromobility,” Vianode’s Straube said. “But electromobility is here to stay.”
He said while most of the talks Vianode is holding are with automakers, others are focused on defense projects.
“The volume in the defense industry is smaller than other industries,” Straube said. “But the strategic importance of defense is very, very high.”
($1 = 1.4024 Canadian dollars)
(Reporting By Nick Carey; Editing by Emelia Sithole-Matarise)
