US Policy Boosts Volt’s Risky Bet on Alabama Graphite Refinery

Volt’s Strategic Move into US Graphite Refining

Volt Resources Limited (ASX, VRC) has taken a significant step forward in its downstream graphite ambitions with the launch of a Definitive Feasibility Study (DFS) for the Alabama Graphite Refinery. Targeting completion in the June 2026 quarter, this study focuses on the initial stage of producing high purity graphite (HPG), building on a promising June 2025 Scoping Study that demonstrated robust economics and market potential.

The refinery project is designed as a two-stage development. The first stage will utilise a proven purification process adapted from Volt’s existing operations in Ukraine, enabling near-term production and revenue generation. The second stage aims to produce ultra high purity graphite (UHPG) using Volt’s patent-pending, environmentally friendly purification technology, which promises lower costs and improved sustainability compared to conventional methods.

Expertise and Flexibility at the Core

Volt has appointed Wave International, a globally recognised consultancy specialising in critical minerals and battery materials, to lead the DFS. Wave’s extensive experience in graphite processing and US refining projects is expected to provide valuable insights and benchmarking for Volt’s refinery design, cost estimation, and execution planning.

Importantly, the refinery is being designed with feedstock flexibility in mind. It will process graphite sourced from Volt’s 70%-owned Zavalievsky Graphite operation in Ukraine, the Bunyu Graphite Project in Tanzania, as well as third-party and recycled materials. This diversified supply strategy aims to mitigate risks and optimise operational resilience.

Aligning with US Critical Minerals Priorities

The Alabama Graphite Refinery aligns closely with US government priorities to bolster domestic critical minerals refining capacity. By establishing a facility capable of producing high-value graphite products within the United States, Volt positions itself as a key player in the North American supply chain for battery and industrial materials. This strategic alignment could facilitate regulatory support, permitting, and potential incentives.

Volt’s CEO, Prashant Chintawar, emphasised the project’s significance, highlighting the combination of proven technology, flexible feedstock sourcing, and strong policy backing as factors that could enable the refinery to play a meaningful role in global graphite supply chains.

Next Steps and Market Implications

Following the DFS completion targeted for mid-2026, Volt plans to engage further with potential customers and strategic partners to secure offtake agreements and project financing. Concurrently, permitting and site development activities in Alabama will progress, supported by collaboration with regional agencies.

While the DFS and subsequent Final Investment Decision remain contingent on financing and regulatory approvals, Volt’s methodical approach and innovative purification technology could set a new benchmark in graphite refining, particularly for battery-grade materials.