Vertically integrated critical minerals firm Global Battery Materials (GBM) on Tuesday released a strong preliminary economic assessment (PEA) for its Kearney graphite project in Ontario, Canada, posting standout financial metrics that far outpace industry benchmarks and bolster the case for North American battery supply chain independence.
The after-tax internal rate of return for the brownfield restart comes in at 67%, with a payback period of just 1.3 years from initial production. Using an 8% discount rate, the study values the project at $183 million (C$260 million) in after-tax net present value — nearly four times its estimated upfront capital cost of C$65.9 million. Sustaining capital is projected at C$30.9 million over the mine’s 20-year operating life, with undiscounted after-tax cash flows expected to total roughly $421 million.
Kearney’s redevelopment leans heavily on existing site infrastructure to cut both costs and lead times. The proposed conventional open-pit mine will use contractor truck-and-shovel methods, feeding mineralized ore into a refurbished flotation concentrator to produce premium graphite concentrate at 95% graphitic carbon. Operations will follow a phased power strategy: milling costs will run at C$31.35 per tonne during an initial diesel-powered phase, dropping to C$25.50 per tonne once the site connects to the provincial 44 kV overhead grid.
Updated June 2026 resource estimates peg Kearney’s indicated resources at 29.2 million tonnes grading 2.10% graphitic carbon, plus 33.8 million tonnes of inferred resources at 1.90% graphitic carbon, making it one of the largest flake graphite deposits outside China. The mine originally ran from 1989 to 1994 before entering care and maintenance amid low graphite prices; Toronto-based GBM acquired the asset in 2025 following a prior ownership restructuring.
The positive PEA lands amid a broader push by Canada — which has designated graphite a critical mineral — to reduce reliance on concentrated overseas supply. Industry data shows China accounts for about 70% of global natural graphite output and more than 90% of downstream battery-grade graphite processing, leaving North America entirely dependent on imports. Once operational, Kearney is set to supply domestic feedstock for the region’s EV battery, energy storage and defense sectors.
“Kearney represents a rare opportunity to establish domestic graphite production quickly and with capital efficiency,” said GBM CEO Eric Miller. “The mine has a proven history of supplying North American markets, and this study confirms the advantages of our brownfield approach. Combined with our advanced-stage anode material pilot plant in South Korea, GBM is ready to act with urgency to strengthen critical mineral supply chains.”
The company confirmed it will next advance a definitive feasibility study for the project, but did not disclose a target completion timeline.
