Graphex Group Limited (NYSE American: GRFX) is focused on the research, development and commercialization of graphite and graphene-based renewable energy solutions. Shares of the graphite company are soaring 63% through early trading on Monday, August 22, 2022. Over the past three months, Graphex Group has seen average daily volume of 244,960 shares. However, volume of 42.71 million shares or dollar volume of around $176.82 million, has already exchanged hands through early trading.
Shares of Graphex Group are surging after the company announced updates and progress on its U.S. expansion initiatives, as well as provide an outline of its business strategy. The company notes that its U.S. plans for expansion come at a very critical time, as President Biden just signed into law the Inflation Reduction Act of 2022, which is considered to be the largest investment to tackle climate change in U.S. history.
Part of the sweeping law is focused on continuing to incentivize and improve the ecosystem for electric vehicles. Graphex is among the world’s top suppliers of spherical graphite, which is a critical component to electric vehicles and renewable energy initiatives.
As a result of the continued demand for EVs, Graphex has increased annual production from 10,000 tons to 40,000 tons. The company has been careful to remove exposure to politically sensitive and volatile regions to help streamline and localize end-to-end processing and production.
Graphex also announced a joint venture with Emerald Energy Solutions LLC to build a 15,000 metric ton per year graphite processing facility in Warren, Michigan. The company sees the facility as the beginning of several locations within the country. The Warren facility is anticipated to be operational sometime between the second and third quarter of 2023.
“As we continue to pursue supply agreements and prepare to break ground at our new processing plant in Michigan in the heart of the automotive sector, we believe that the growth trajectory for Graphex is completely aligned with and supported by recent policy advances and funding opportunities for domestication of critical mineral processing,” said John DeMaio, CEO of Graphex Technologies and President of the Graphene Division of Graphex.
“As we recently shared with the New York Times, we believe that the invocation of the Defense Production Act, the Bipartisan Infrastructure Law, and the newly enacted Inflation Reduction Act of 2022 will greatly assist companies like Graphex to accelerate the scale of domestic production to meet demand and in turn accelerate the transition to EVs and other sustainable energy solutions that utilize lithium-ion (Li-ion) batteries. Having experienced many campaigns for change over a long career in the energy transition arena, I am very encouraged to see such widespread foundational support for the electrification of mobility, and to see policy become legislation and legislation beget funding at a truly unprecedented pace.”
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