DOD Grants Canadian Companies Funding to Improve North American Cobalt, Graphite Supply

Two Canadian companies have received a total of $14.9 million from the U.S. Department of Defense to ensure resilient cobalt and graphite supply for the North American nations.

Awarded through the Defense Production Act Investment program, Fortune Minerals Ltd. received $6.5 million, which will help complete a feasibility study of the company’s NICO Project, a planned vertically integrated development that covers the entire mineral production process.

Lomiko Metals is the other recipient of the investment. The company received an $8.4 million grant, which it will use to advance its La Loutre natural flake graphite project, allowing it to supply high-quality graphite for defense applications and electric vehicles, Defense .gov reported.

Jonathan Wilkinson, Canada’s energy and natural resources minister, said that as Canada positions itself as a leading supplier of responsibly sourced critical minerals, the partnership with the United States shows its commitment to developing secure critical mineral value chains.

The U.S.-Canada Joint Action Plan on Critical Minerals was unveiled in January 2020 to strengthen critical mineral production in North America, especially those used in aerospace, defense, clean energy and other key applications.