Titan Mining (TSX:TI, NYSEAMERICAN:TII) has entered into a conditional agreement with the US Army to develop the country’s inaugural commercial graphite-processing facilities on strategic military installations. The announcement, made on Thursday, June 25, by the company, details that its wholly owned subsidiary, Empire State Mines, has received enhanced use lease selections for the construction of the Kilbourne graphite purification plant across two key defense sites: the Pine Bluff Arsenal in Arkansas and the Anniston Army Depot in Alabama.
These leases, which are authorized to extend for up to 50 years under federal statutory authority, represent a direct implementation of President Donald Trump’s March 2025 executive order. This order specifically mandates the deployment of domestic mineral-processing infrastructure on defense installations, underscoring a national imperative to bolster critical mineral supply chains within the United States.
Under the terms of the agreement, Titan Mining will assume full responsibility for all design, financing, construction, and operating costs associated with the new facilities. The US Army will maintain ownership of the land throughout the lease period, with Titan providing in-kind infrastructure improvements to the host bases as compensation, rather than cash rent. This structure highlights a collaborative approach aimed at leveraging private sector capabilities for national security objectives.
Rita Adiani, President and CEO of Titan Mining, emphasized the historical significance of this initiative in the company’s announcement. “For the first time in American history, a critical minerals processing facility will be built on US defense soil, and Titan Mining is the company making it happen,” Adiani stated. Her remarks underscore the profound shift this partnership represents for domestic critical mineral independence.
The strategic importance of this venture is amplified by the current landscape of graphite supply. The United States presently produces no natural flake graphite at a commercial scale, rendering it entirely dependent on imports. This reliance is further complicated by the fact that Chinese refiners control more than 90 percent of global battery-grade graphite-processing capacity, creating a significant vulnerability in the supply chain for essential military, energy storage, and industrial applications.
Recent developments have exacerbated these supply concerns for domestic developers. In March of this year, the US International Trade Commission (ITC) delivered a ruling that Chinese graphite anode materials were not causing harm to the domestic industry. This decision effectively blocked proposed anti-dumping and countervailing duties by the Department of Commerce, which would have imposed tariffs exceeding 160 percent on Chinese imports. Consequently, emerging US producers are compelled to compete directly against lower-cost foreign material without anticipated trade protections.
Simultaneously, Beijing has intensified its control over the global supply of graphite. Late last year, China implemented strict export controls on artificial graphite and blended anode materials, further tightening its grip on a critical component for various high-tech industries. These geopolitical and trade dynamics underscore the urgency and strategic value of Titan Mining’s domestic processing initiative.
To supply the newly approved military-based refineries, Titan Mining plans to leverage its existing operations in upstate New York. The company operates the Empire State zinc mine, which is projected to produce between 62 million and 66 million pounds of payable zinc in 2026. Last year, Titan commissioned a demonstration facility to process material from its adjacent Kilbourne graphite deposit, with an ambitious goal to scale production to 40,000 metric tons of natural graphite concentrate per year. According to Titan, this volume is sufficient to meet approximately half of current US demand, significantly reducing import reliance.
The proposed facilities in Arkansas and Alabama are designed to take this raw domestic feedstock further downstream, transforming it into processed graphite suitable for a diverse range of applications, including military equipment, energy storage solutions, and various industrial uses. This integrated approach from mining to advanced processing is crucial for establishing a robust, secure domestic supply chain.
Negotiations for formal business terms agreements with the US Army are currently in progress. The company has targeted the second half of 2027 for the commencement of construction of the primary facility, indicating a clear timeline for project execution. Following the announcement, shares of Titan Mining experienced a notable increase in Toronto, spiking to C$3.70 on the day of the news. As of Friday, June 26, at 11:15 a.m. PDT, the company’s share price was recorded at C$3.04.
This partnership marks a pivotal moment for US critical mineral independence, establishing a foundational domestic processing capability for graphite that is essential for both national defense and advanced technological industries, while also navigating complex global trade dynamics.
