Graphite factory to locate in Macomb

Facility is supplier for EV battery manufacturers

John DeMaio, President of the Graphene Division of Graphex Group, wants to be part of the solution to the global supply chain problem.

Graphex will open its first United States-based graphite processing facility in Warren before September of 2023. Graphite is used in the production of lithium ion batteries that power electric vehicles. Traditionally, graphite has been manufactured overseas, particularly in China and South Korea. DeMaio wants to start bringing that production to the U.S.

“We hope to make a difference,” said DeMaio. “We want to bring jobs and technology into the U.S. instead of the other way around, which has been kind of a phenomenon over the last decade or so. You can’t change it overnight. We are not going to start mining graphite, for example, in the U.S. tomorrow. There is still going to be connection to China and other areas in terms of getting the raw materials, but as much as we can bring part of that process here, we can alleviate some of those concerns.”

The new 150,000 squarefoot Graphex processing facility will be located in the Emerald Business Park on Hoover Road near Eight Mile Road. The location is practical in terms of proximity to General Motors, Ford and Stellantis — and in particular the new battery lab at the GM Tech Center — and is also a nod to the history of the automotive industry. Graphex is expected to invest between $50 and $60 million in the project.

“First and foremost, the birthplace of automobiles is the Motor City, so we had a natural attraction to it,” said DeMaio. “The opportunity to bring jobs and automotive technology back to the area was very attractive.”

DeMaio said the Emerald Business Park was chosen because part of the site has already been developed and there is a power substation available, which is essential to the Graphex facility.

The factory, which will house production, testing, storage and administrative departments, is expected to employ 125 people. Jobs will include unskilled workers, skilled technicians and mechanics, and supervisors. DeMaio said the facility will be open 24 hours and he expects to run three shifts of workers to accommodate that schedule.

“We will have everything from minimum wage up to $60 an hour,” said DeMaio.

The Graphex facility is expected to process 15,000 metric tons of graphite annually. It can take up to 154 pounds of graphite to produce one EV battery. With a heavy commitment to the production of EVs on the part of automakers, DeMaio says this is a business that has the potential to grow.

“There is so much demand for this product as well as others in the EV ecosystem that it is not out of the question that this is the first of several facilities that we build around the U.S.,” said DeMaio. “It could be that we expand right there in Warren. We don’t know what the future holds but we are optimistic that we can deliver what the market needs and right now, the market is showing all kinds of signals that it is just going to keep going.”

Graphex has been in the business of processing graphite for about eight years globally, but the Warren facility is its first U.S. location. The company is working with several battery manufacturers in preparation for the factory opening next year and is currently in the process of signing the lease at Emerald and finalizing other contracts. DeMaio said he has already been in contact with the Michigan Department of Environment, Great Lakes and Energy to make sure all EGLE requirements are fulfilled.

“Graphite is not the sexiest component of an EV but it is definitely necessary,” said DeMaio. “We are happy to contribute and we are looking forward to being part of the community and making a positive impact on it from both a local and industry standpoint. We are going to be in this for the long haul.”

Warren Mayor James Fouts called Graphex coming to Warren a “game changer.”

“I’m excited they are taking the south end of the city and creating a new development for the auto industry,” said Fouts. “They are taking an area that desperately needs new investment and contributing to making the batteries that are the wave of the future.”

“We want to bring jobs and technology into the U.S. instead of the other way around, which has been kind of a phenomenon over the last decade or so. You can’t change it overnight. We are not going to start mining graphite, for example, in the U.S. tomorrow. There is still going to be connection to China and other areas in terms of getting the raw materials, but as much as we can bring part of that process here, we can alleviate some of those concerns.”

— John DeMaio, President of the Graphene Division of Graphex Group