Graphite Financing Moves and Strategic Project Development in 2025: How AGT and LMR Are Paving the Way for EV Battery Supercycle

The global electric vehicle (EV) battery market is on the cusp of a historic expansion, driven by decarbonization mandates, energy security concerns, and surging demand for battery-powered transportation. At the heart of this transformation lies a quiet but pivotal player: graphite. While lithium and nickel dominate headlines, natural graphite—used in anodes for lithium-ion batteries—remains a cornerstone of the EV supply chain. Two junior mining firms, Applied Graphite Technologies (AGT) and Lomiko Metals (LMR), are leveraging 2025 financing moves to accelerate project development and position themselves as key suppliers in this growing market.

The Strategic Case for Graphite in 2025

Graphite's role in EVs is both technical and economic. Natural vein graphite, such as that produced at AGT's Queens Mine in Sri Lanka, offers a superior alternative to synthetic graphite. It requires no primary processing, boasts over 95% carbon content, and performs better in anodes. Crucially, it also has a significantly lower carbon footprint and cost, aligning with the ESG priorities of automakers and battery manufacturers.

Meanwhile, Lomiko's La Loutre project in Quebec targets natural flake graphite, a form that is already used in industrial applications and requires minimal refining. Both projects are strategically located in regions with established mining infrastructure and political stability, reducing supply chain risks for downstream buyers.

Applied Graphite: Scaling Sri Lanka's Natural Advantage

AGT's 2025 financing strategy is a masterclass in capital efficiency. The company has executed multiple tranches of a non-brokered private placement, raising C$1 million through a mix of common shares and convertible notes. A standout move is its convertible note offering, which allows investors to convert debt into equity at a 10% interest rate. This structure provides AGT with immediate liquidity while deferring dilution until the project reaches a monetizable stage.

The funds are earmarked for the Queens Mine Complex, where AGT is leveraging Sri Lanka's untapped vein graphite deposits. The project's ESG credentials—minimal water usage, no tailings, and low energy requirements—make it a compelling partner for North American automakers seeking to localize their supply chains. AGT's management has also signaled plans to collaborate with battery manufacturers to test its graphite in anode production, a step that could fast-track commercialization.

However, AGT's reliance on regulatory approvals and the TSX Venture Exchange's nod for its offerings introduces execution risk. Investors should monitor the July 21, 2025, closing date for the second tranche and the progress of anode piloting trials.

Lomiko Metals: Quebec's Answer to EV Supply Chain Localization

Lomiko's C$1 million private placement, including a mix of units and flow-through shares, underscores its focus on Quebec's burgeoning critical minerals industry. The La Loutre project, located in the James Bay region, is advancing through a pre-feasibility study that will model geology, production, and environmental impact. By engaging Quebec-based consultants, Lomiko is aligning with provincial incentives for responsible mining and securing a foothold in a region with strong political support for EV infrastructure.

The flow-through shares are particularly innovative. By allowing investors to claim tax deductions for exploration expenses, Lomiko reduces its effective cost of capital while accelerating the La Loutre bulk sample and anode piloting. This structure also appeals to Quebec-based investors, who can benefit from additional provincial tax credits.

A key milestone for Lomiko is the 250-tonne bulk sample planned for fall 2025. If successful, this will provide critical data on the project's scalability and anode performance, potentially attracting strategic partners from the North American battery sector.

Risk Mitigation and Market Positioning

Both companies are navigating a complex landscape of regulatory scrutiny and market volatility. AGT's insider participation in its placements—exempt under securities laws—signals management's confidence in the project's potential. Lomiko's transparent allocation of funds to pre-feasibility studies and its alignment with Quebec's critical minerals strategy further mitigate risks.

However, investors must weigh these strengths against challenges. Graphite prices, while stable, remain sensitive to synthetic graphite production and geopolitical shifts in lithium-ion battery technology. Additionally, both firms face the typical hurdles of junior miners: project execution delays, permitting bottlenecks, and competition from larger players.

Investment Outlook

For investors seeking exposure to the EV battery supply chain, AGT and LMR offer complementary opportunities. AGT's Sri Lanka-based project provides a near-term, ESG-optimized graphite source with minimal processing needs. Lomiko's Quebec operations align with North American localization trends and benefit from flow-through financing structures.

Actionable advice:
1. Short-term investors might prioritize Lomiko's flow-through shares for tax efficiency, provided the La Loutre bulk sample meets expectations.
2. Long-term investors should monitor AGT's anode piloting results and its ability to secure partnerships with battery manufacturers.
3. Diversification is key. Given the cyclical nature of commodity markets, pairing these plays with broader EV exposure (e.g., Tesla, BYD) could balance risk.

The EV battery boom is not a single event but a multi-decade transformation. Companies like AGT and LMR that can deliver high-purity, low-cost, and sustainable graphite will be critical to this shift—and their 2025 financing moves suggest they are already preparing for the supercycle ahead.