Urbix gets US$125M government grant for Alabama graphite plant

Urbix, a company testing battery material production in the southern United States, has landed a US$125 million grant from the U.S. Department of Energy to build a new graphite processing plant in Alabama.

The plant, already backed by funding from London-based Appian Capital Advisory, is to produce 10,000 tonnes of the anode material a year. It will support U.S. battery makers with a reliable supply for the anodes that store charge in lithium-ion batteries. They’re a critical component of battery manufacturers’ supply chains.

“This achievement is a testament to our sustainable processing technology’s role in strengthening U.S. battery capabilities,” Urbix CEO Nico Cuevas said in a release. “We are committed to accelerating the development of our facility, providing a secure, end-to-end graphite anode material supply chain vital to the industry’s ambitions.”

The funding, part of the American bipartisan infrastructure law passed in 2021, aims to boost U.S. battery production for electric vehicles. It also seeks to reduce reliance on China, which supplies over 90% of the world’s anodes for lithium batteries.

Job creation

The project is to create 200 permanent jobs and 300 construction jobs. It also includes a plan to boost careers in so-called STEM fields – science, technology, engineering and mathematics – for the clean energy sector.

In October, Urbix teamed up with Appian to fund the plant. Graphcoa, a Brazilian graphite producer backed by Appian, is to provide feedstock to the plant. This will ensure a seamless supply chain across the Americas, Urbix said.

The company has been operating a pilot-scale plant and laboratory in Mesa, AZ for seven years to refine its proprietary technology. It’s also developing a commercial scale demonstration module in Research Triangle Park, NC.

Its environmentally friendly and low-cost method to make coated spherical purified graphite avoids hydrofluoric acid to produce yields surpassing industry standards, Urbix says.