Graphite One Stock Sidelined as Pentagon Blueprint for $48 Billion Battery Market Takes Shape

Pentagon report frames domestic graphite as national security priority, but Graphite One remains pre-revenue with no off-take deals, stock down 40% YTD.

The U.S. Department of Defense released a report on June 4, 2026, that reframes domestic battery material supply chains as a national security imperative. For Graphite One, the document provides top-level political cover—yet the share price has slumped more than 40% since the start of the year, trading at €0.70 as of the latest close. That leaves the stock roughly 56% below its 52-week peak of €1.59, reached in late January.

Pentagon prescribes tax credits and licensing to break Asian grip

The Pentagon’s recommendations are specific and far-reaching. It calls for production and investment tax credits, a government co-investment fund, and a licensing framework to bring manufacturing technologies from allied nations into the United States. The goal: cut dependence on foreign battery equipment, which the report says Asia now controls about 92% of. The measures could create an estimated 5,000 domestic jobs, the report projects, and open up a global market expected to reach $48 billion by 2032.

Graphite One CEO Anthony Huston said the proposals align directly with his company’s plan to build a fully integrated U.S. graphite supply chain—mining at the Graphite Creek deposit in Alaska, then processing at a planned advanced anode materials facility in Conneaut, Ohio. That Ohio plant would handle high-temperature graphitization and purification, filling a gap the Pentagon explicitly flagged.

Political backing is real, but operations are still on the drawing board

The federal support already committed is substantial. The U.S. Export-Import Bank has signaled non-binding letters of interest worth more than $2 billion. The Department of Defense has allocated $42 million in grant funding. The project also carries FAST-41 designation, which fast-tracks permitting as part of the national minerals strategy. And the government has extended tariff exemptions on imported battery equipment through November 2026, giving Graphite One breathing room to build its own capacity.

Yet the company remains in the pre-revenue development phase. The U.S. currently imports 100% of its natural graphite—a structural vulnerability the Pentagon wants to fix, but Graphite One has not yet secured off-take agreements or broken ground on its Ohio processing line. That gap between strategic narrative and operational delivery is familiar among early-stage resource stocks.

Technical signals point to a stalled trade

The stock’s relative strength index sits at 43 (some data put it at 43.6), indicating neutral-to-weak momentum without reaching oversold territory. The 30-day annualized volatility stands near 49%, keeping the name firmly in speculative territory. Investors appear to be waiting for concrete milestones—such as the start of construction in Conneaut or finalized financing from EXIM—before re-rating the equity.

Until then, Graphite One enjoys the kind of political tailwinds that typically underpin long-term value in strategic materials, but the share price tells a story of patience, not euphoria. The Pentagon’s $48 billion market vision may eventually find its way into the stock, but not before the company delivers something more tangible than a report.