What's Happening?
Graphite One has announced the discovery of rare earth elements (REEs) at its Graphite Creek deposit located in the north of Nome, Alaska. This discovery was made through geochemical testing conducted by Activation Laboratories, which identified REEs in drill
core samples from garnet-bearing ore rock within the proposed pit area. The Graphite Creek deposit is recognized as the largest known natural graphite deposit in the United States. The feasibility study for the site, completed in February 2025, tripled previous resource estimates, highlighting the site's potential. The proposed mining pit is expected to have a lifespan of around 20 years, covering only 12% of the 15.3km mineralized zone. The presence of REEs such as neodymium, praseodymium, dysprosium, terbium, and samarium is significant as these elements are crucial for manufacturing permanent magnets used in wind turbines, electric vehicles, and advanced defense systems.
Why It's Important?
The confirmation of REEs at Graphite Creek is a strategic development for the U.S., which is seeking to reduce its reliance on foreign sources, particularly China, for critical minerals. China currently dominates the global production and processing of REEs and has imposed export restrictions on these materials. The discovery at Graphite Creek could bolster domestic supply chains for critical technologies and defense systems, aligning with national security interests. The U.S. Geological Survey's recognition of Graphite Creek as a major deposit underscores its importance. Additionally, the project has received significant financial backing, including a $37.5 million grant from the Defense Production Act Title III and a $570 million financing interest from the U.S. Export-Import Bank, indicating strong federal support for developing domestic mineral resources.
What's Next?
Graphite One is expected to continue its engagement with federal departments and agencies to advance its supply chain strategy for advanced graphite products. The company is likely to focus on maximizing the value of REEs as a byproduct of its graphite production. The ongoing development of the Graphite Creek project will be closely watched by stakeholders in the energy, automotive, and defense sectors, as well as policymakers focused on critical mineral independence. The successful development of this site could serve as a model for other domestic mineral projects, potentially leading to further investments and policy support for U.S. mineral independence.
Beyond the Headlines
The discovery of REEs at Graphite Creek not only has economic and strategic implications but also raises environmental and regulatory considerations. Mining operations in Alaska must navigate complex environmental regulations and potential opposition from local communities and environmental groups. The project's success will depend on balancing economic benefits with environmental stewardship and community engagement. Additionally, the development of domestic REE sources could lead to technological innovations in extraction and processing, potentially reducing environmental impacts and improving efficiency.
