The Department of Defense has awarded Canadian-based South Star Battery Metals a $3.2 million grant to support production at its BamaStar graphite project in Alabama.
Entered under the Defense Production Act Title III authorities and utilizing funds appropriated by the Inflation Reduction Act, the grant will enable South Star to perform a bankable feasibility study on the planned mine. South Star’s coated spherical purified graphite (CSPG) will be used as feedstock for domestic lithium-ion battery anode production, contributing to a more complete U.S.-based graphite anode supply chain.
“This is another example of the critical importance of the Defense Production Act investment authorities,” said Dr. Laura Taylor-Kale, ASD (IBP). “As one of our first awards to a Canadian company in the battery materials sector, this award exemplifies our combined commitment to strengthening our battery material supply chains and global approach to industrial base resilience.”
To date, the DPAI Program has made 23 awards totaling $717.5 million.
BamaStar, located in Coosa County, is a historic mine active during World Wars I and II. Recent testing indicates a traditional crush/grind/flotation concentration circuit that achieved grades of approximately 94%-97% Cg with approximately 86% recoveries.
Sources: DoD and South Star Battery Metals