Graphex Group Finalizes Joint Venture with Emerald Energy Solutions, LLC for the Construction of its Graphite Processing Facility in Warren, Michigan

Rhea-AI Summary

Graphex Technologies has established a joint venture with Emerald Energy Solutions to build a 150,000 square-foot graphite processing facility in Warren, Michigan. This plant aims to cater to the increasing demand for graphite in electric vehicle batteries. The facility, expected to cost $75 million, will create approximately 125 jobs and is scheduled to become operational by the third quarter of 2023. The partnership aligns with U.S. governmental efforts to localize critical mineral supply chains in response to the growing electric vehicle market.

Positive

• Joint venture with Emerald Energy Solutions to construct a 150,000 sq ft graphite processing facility.
• Investment of $75 million anticipated to create 125 jobs in Warren, MI.
• Facility expected to be operational by Q3 2023, aligning with increased demand for EV batteries.

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• None.

The JV - “Graphex Michigan I” - will bring Graphex’s deep industry experience in graphite processing to support the growing demand for the critical mineral in the U.S. market

ROYAL OAK, Mich., June 07, 2022 (GLOBE NEWSWIRE) -- Graphex Technologies, LLC, a wholly owned subsidiary of Graphex Group Limited (collectively “Graphex”) (OTCQX: GRFXY | HKSE: 6128) and a global leader in mid-stream processing of natural graphite, which is used for electric vehicle (EV) lithium-ion (Li-ion) batteries, has finalized a joint venture with Emerald Energy Solutions, LLC (“EES”), following through on the previously announced MOU with EES to construct the future site of a new 150,000 square-foot graphite processing facility in Warren, Michigan.

EES, whose affiliated entity owns and operates the 27-acre industrial Emerald Business Park, will be responsible for acquisition, designs, permitting and regulatory approvals, construction, inspections, mechanical operation of the facility, as well as administrative corporate support for the joint venture. EES is comprised of local Michigan professionals experienced in handling all aspects of the development of state-of-the-art industrial and manufacturing facilities in the Detroit metropolitan area– from design and construction to regulatory and legal compliance, financial affairs, and supply sourcing. EES is continuing to redevelop Emerald Business Park to become a hub for innovation and business. Its team rehabilitated and built the industrial facility from dilapidated empty shells into first-class manufacturing and processing facilities.

With the global proliferation of EVs over the next decade, processing capacity for critical minerals such as graphite will need to accelerate to meet growing demand. The JV formation enables Graphex to bring its industry expertise and technology to produce high quality anode material at full commercial scale. The joint venture formation follows recent news of the White House’s latest plan to invoke the Defense Production Act to support the production of critical minerals, including graphite, in efforts to secure a localized supply chain.

The City of Warren was a strategic choice for the site selection of the plant due to its industrial character and proximity to auto manufacturers, which has received strong support from local officials. In his annual speech on the state of the city, Mayor James Fouts recently acknowledged Graphex and the intended investment in Warren, saying “..companies that maintain batteries for electric vehicles are moving to Warren so that one day we can sever ties with fossil fuels. Graphex chose Warren over all other cities for its first headquarters in the United States.” The new graphite processing facility will bring new modern technologies for the electric vehicle industry and continue to establish Warren as a leader in the next generation of automotive manufacturing.

“The formation of Graphex Michigan I is a key next step in bringing critical mineral supply chains into the U.S. and a strategic milestone in our global expansion and diversification roadmap. The influx of technology and jobs will positively affect the local community and the overall EV industry by providing the benefits of localized graphite supply, by mitigating external geopolitical risks, and by developing next-gen processing and materials here in the U.S.,” said John DeMaio, CEO of Graphex Technologies and President of the Graphene Division of Graphex. “It is equally exciting to be part of the on-shoring of EV technology and supply chain not only into the U.S., but specifically to engage with the city, county, state, and Federal agencies to contribute to the revitalization of the Warren area, which had previously experienced an exodus of automotive manufacturing.”

“As native Michiganders, the EES team has deep-rooted connections to the local communities and numerous strong relationships within the automotive industry and we welcome the opportunity to contribute to the revitalization of the industry and the area,” said David Halabu, Managing Director of EES. “Our straight-forward approach to project execution, coupled with local regulatory knowledge and experience, will ensure Graphex Michigan I is well positioned to enter the market and make an immediate positive impact to the industry and the community.”

The $75 million Warren plant constructed by Graphex and EES will operate 24 hours a day, and at full capacity, bringing about 125 new jobs to the area, ranging from production workers to mechanical, supervisory, and management roles. The plant is expected to be operational by the third quarter of 2023.

To learn more about Graphex, please visit www.graphexgroup.com

To learn more about EES, please visit www.emeraldenergysolutions.com

​​About Graphex Group
Graphex Group Limited is a Cayman Island company with principal and administrative offices in Hong Kong and subsidiary office in Royal Oak, MI. Graphex is a global leader in the industry focused on the development of technologies and products for the enhancement of renewable energy, particularly the enrichment of spherical graphite and graphene, key components for Electric Vehicle (EV) batteries, lithium-ion batteries, and other use cases. Proficient in commercial deep processing of graphite, Graphex is currently producing over 10,000 metric tons of spherical graphite annually. With a strategy to expand its global operations to support energy transition and electrification efforts worldwide, Graphex Group is currently among the top suppliers of specialized spherical graphite to the EV and renewable energy industries and holds patents in areas including products, production methods, machinery design, and environmental protection.

About Emerald Energy Solutions
Emerald Energy Solutions LLC has its principal offices in Royal Oak, MI and is experienced in all aspects of site assessment and selection, inspections, acquisitions, regulatory approval, supply sourcing, legal and financial affairs for the design and construction of first-class manufacturing and processing facilities in the Detroit metropolitan area as well as other states. Its affiliated entity currently operates a 27-acre industrial park in Warren, MI featuring a 15-megawatt power substation and 400,000 rentable square feet. The complex was recently renovated into several manufacturing and first-class processing facilities.

Safe Harbor Statement
This press release is being made pursuant to, and in accordance with, Rule 135 under the Securities Act of 1933, as amended (the 'Securities Act'), and shall not constitute an offer to sell, or the solicitation of an offer to buy, any securities. Any offers, solicitations or offers to buy, or any sales of securities will be made in accordance with the registration requirements of the Securities Act.

Statements about the Company's future expectations and all other statements in this press release other than historical facts, are 'forward-looking statements' within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and as that term is defined in the Private Securities Litigation Reform Act of 1995. The Company intends that such forward-looking statements be subject to the safe harbors created thereby.

The above information contains information relating to the Company that is based on the beliefs of the Company and/or its management, as well as assumptions made by any information currently available to the Company or its management. Without limiting the foregoing, the planned construction of a facility is subject to construction and permitting delays as well as any other condition that materially impacts construction of a facility, including government approvals, financing and any litigation. When used in this document, the words 'anticipate,' 'estimate,' 'expect,' 'intend,' 'plans,' 'projects,' and similar expressions, as they relate to the Company or its management, are intended to identify forward-looking statements. Such statements reflect the current view of the Company regarding future events and are subject to certain risks, uncertainties and assumptions, including the risks and uncertainties noted. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove to be incorrect, actual results may vary materially from those described herein as anticipated, believed, estimated, expected, intended or projected. In each instance, forward-looking information should be considered in light of the accompanying meaningful cautionary statements herein. Factors that could cause results to differ include, but are not limited to, successful performance of internal plans, the impact of competitive services and pricing and general economic risks and uncertainties.

Information from third sources identified in this release are based on published reports for such information and we have assumed the accuracy of such reports without independent investigation or inquiry.

This communication is for informational purposes only and is neither an offer to sell nor a solicitation of an offer to purchase any securities of the Company, including but not limited to its American Depositary Shares.

Information made available on the Company’s website is not a part of any disclosure made or to be made by the Company with respect to any offer to sell or solicitation of an offer to purchase any securities of the Company and are not part of any filings by the Company with the U.S. Securities and Exchange Commission.

Media Inquiries
FischTank PR
graphex@fischtankpr.com

FAQ

What is the focus of the joint venture between Graphex and Emerald Energy Solutions?

The joint venture is focused on constructing a graphite processing facility to support the demand for graphite in electric vehicle batteries.

When is the new graphite processing facility expected to be operational?

The facility is expected to be operational by the third quarter of 2023.

How much is being invested in the Warren graphite processing plant?

The investment for the Warren graphite processing plant is $75 million.

How many jobs will the new Graphex facility create?

The new facility is expected to create approximately 125 jobs.

What role does the U.S. government play in this project?

The project aligns with the U.S. government's efforts to localize critical mineral supply chains, especially for electric vehicles.

What is the significance of the location choice for the Graphex plant?

Warren, MI, was chosen for its industrial character and proximity to auto manufacturers, supported by local officials.