Appian invests in US graphite-focused firm Urbix as China export curbs loom

U.K.-based private equity fund Appian Capital Advisory is investing in Urbix, a U.S.-based developer of graphite processing technology, and has inked a deal to develop a commercial-scale downstream processing facility.

The plant will produce coated spherical purified graphite sourced from natural graphite from Graphcoa, another company Appian invested in, which has graphite deposits across Brazil. 

“This investment and joint development agreement mark a significant advancement towards establishing a vertically integrated graphite company in the Americas,” Appian chief executive Michael Scherb said in a statement. 

“By establishing a strategic collaboration with Appian, we continue progressing the deployment of a U.S. developed graphite processing technology towards commercial scale, that we expect to supplant Chinese supply of battery grade graphite,” Urban founder and CEO, Nico Cuevas, noted in a separate statement.

The company said in July it planned to be “one of the most active investors in the metals and mining space over the next few years.” It noted its targets would be commodities that are critical to society over the medium to long term, but will see structural shortages.

Among the steps taken in that direction, Appian has made two zinc acquisitions this year, including a joint venture with Osisko Metals (TSXV: OM) in May. The deal will see it earn up to 60% in the Pine Point zinc-lead project in the Northwest Territories in return for a $100-million investment. 

The other was the purchase in June of the Rosh Pinah zinc mine in Namibia from Trevali Mining, which filed for creditor protection last year.

Appia’s investments in graphite come on the heels of China’s curb in graphite exports announced earlier this month. Some types of graphite will require export permits from Dec. 1.

China is the world’s dominant graphite producer and exporter. It also refines more than 90% of the global supply into the material that is used in electric vehicles (EV’s) battery anodes, which is the negatively charged portion of a battery.