Titan Mining signs term sheet with US Army for Alabama graphite plant

Titan Mining has announced that its wholly owned subsidiary, Empire State Mines, has executed a term sheet with the United States Army to develop a critical minerals processing facility. The agreement establishes the principal commercial terms for the project, which is planned for construction on federal military property in Alabama. This development represents a significant step in the company’s strategy to expand its domestic graphite processing capabilities within the United States.

Under the proposed framework, Empire State Mines will lease approximately 97 acres at the Anniston Army Depot in Alabama. The lease term is set for up to 100 years, providing long-duration site control for the venture. The facility is designed to transform raw graphite into higher-value materials that are essential for batteries, defense equipment, and various industrial products. By leveraging the existing infrastructure, site access, and coordinated utilities planning at the strategic defense installation, the company aims to support the fast-track construction of the plant. This approach allows for the establishment of downstream processing capacity without the need to develop an entirely new industrial site from the ground up.

The commercial terms specify that Empire State Mines will develop, finance, build, own, and operate the commercial-scale facility. Phase one of the project is focused on producing Purified Micronized Graphite. Following customer qualifications, the facility will also produce Coated Spherical Purified Graphite. These value-added natural graphite products are intended to support supply chains for U.S. defense, industrial, and energy sectors. The agreement grants the Army a right of first offer to purchase certain uncommitted production of these materials. However, this right is capped at a maximum of 10% of annual facility production and does not apply to product that has already been committed under qualifying offtake, supply, or project-financing arrangements.

This move extends Titan’s domestic graphite platform into purified and coated graphite products. The company noted that it commenced graphite concentrate production at its Kilbourne demonstration facility in New York state in January, marking the first U.S. production of the material in decades. Additionally, in July, Titan entered into a supply agreement with a U.S. manufacturer serving the aerospace and defense sectors for natural graphite products from its planned commercial facility in New York. Rita Adani, the chief executive officer of Titan Mining, described the commercial framework as a significant milestone in building a fully integrated American graphite supply chain. She highlighted that the arrangement combines strategic U.S. defense infrastructure with the company’s existing operating infrastructure and expertise in New York.

Dr. Jeff Waksman, the Deputy Assistant Secretary of the Army for Installations, Energy and Environment, stated that processing critical minerals on U.S. soil is a national defense priority. He emphasized that the Army is using its legal authorities and land to help expedite the growth of the critical minerals industrial base, thereby equipping and sustaining American soldiers without putting taxpayer dollars at risk. Despite the strategic importance of the project, Titan’s stock was down 6% on the NYSE American by market close on Wednesday. The company currently has a market capitalization of $228 million.