Northern Graphite, North America's sole flake graphite producer, is preparing to restart its Lac des Iles mill in Quebec next Monday, following a planned maintenance shutdown that began in November 2024. This marks a crucial step in the company's strategy to significantly increase production and strengthen its position as a key supplier for the burgeoning electric vehicle (EV) market and other advanced technologies.

The company is working towards doubling its production from its current capacity, with plans to reach a significantly higher output. Northern Graphite had already made substantial progress in 2024 before the maintenance shutdown, and company spokesperson Pav Jordan confirmed that the company is on track to continue that progress once operations resume. “We’ve made considerable strides, and once the mill is back online, we will keep pushing toward our goal of significantly increasing output,” Jordan said. In addition, Northern Graphite has begun the permitting process to open a new pit in 2025, which will further enhance its production capacity.

The news of the restart has already led to a surge in investor confidence, with Northern Graphite’s shares rising sharply on Tuesday, reflecting growing optimism in the company’s prospects. This is driven in part by the increasing demand for battery-grade graphite, a critical component in the production of EV batteries and other green technologies.

As part of its growth strategy, Northern Graphite has secured price increases for 2025, driven by rising production costs and inflation. While specific figures were not disclosed, the company expects prices for battery-grade graphite to rise due to growing global demand. This increase comes as more EV manufacturers look to diversify supply chains beyond China, with geopolitical shifts and government incentives further highlighting the need for non-Chinese sources, positioning Northern Graphite to benefit.

Northern Graphite’s production boost and price hikes could have indirect effects on other resource sectors, including bauxite, a key component in aluminum production. As demand for both graphite and aluminum rises with the growth of the EV industry, bauxite may face supply pressures. This competition for critical materials could impact the pricing dynamics in the mining sector as industries adjust to the increasing demands of the green technologies.

Looking forward, Northern Graphite’s expansion plans and its ability to secure higher prices position it for continued success in a rapidly growing market. With the restart of the Lac des Iles mill and its strategic focus on meeting the increasing demand for battery-grade graphite, the company is well-placed to play a leading role in the North American supply chain, contributing significantly to the transition to electric mobility and renewable energy.