DECEMBER 5, 2024 – In the shadow of Coosa County, Alabama’s pine-strewn hills, and across Nome, Alaska’s rugged expanse, the Defense Department is mounting a strategic response to an urgent security challenge. Beneath these two distinct landscapes lie the BamaStar Graphite Project and the Graphite Creek deposit, which anchor efforts to rebuild America’s graphite production enterprise — an undertaking critical to our military’s lithium-ion batteries. These projects, supported by Defense Production Act funding, are part of a broader push to address vulnerabilities in the defense industrial base that leave the nation exposed to supply chain disruptions and adversarial influence.
For decades, the United States has been almost entirely dependent on foreign sources for graphite — a key component in the batteries that power electric vehicles, military energy systems, and other technologies central to modern life. China, which produces 77% of the world’s graphite and refines more than 90%, dominates the market. As geopolitical tensions rise, this reliance has become a glaring weakness. The 2022 Defense Department report titled “Securing Defense-Critical Supply Chains” underscores the gravity of the issue, stating:
“To defend the nation and deter America’s adversaries, the Defense Department works to ensure that our armed forces have reliable access to every advantage. Meeting that mission requires a healthy DIB (defense industrial base) built on resilient, diverse and secure supply chains.”
The United States has taken bold steps to secure its graphite supply. In February 2021, Biden’s Executive Order 14017 catalyzed a comprehensive review of critical supply chains, with graphite standing out as a priority. China’s 2023 export restrictions on graphite heightened the urgency, sending shockwaves through industries reliant on the mineral and underscoring the department’s efforts to mitigate risk.
Laura Taylor-Kale, assistant secretary of defense for Industrial Base Policy, who also holds a doctorate in management science and engineering, emphasized during an October 2024 briefing that world events demand a long-term shift in defense industrial strategy. “We have seen how quickly we need to ramp up capacity in response to conflict,” she said. “World events have forced us to prepare for the long-term and plan differently.” Taylor-Kale also highlighted the historic scope of investments in key sectors to bolster supply chains, describing them as catalysts for a myriad of additional programs and partnerships.
Initially designed to address wartime emergencies, the DPA has evolved into a powerful tool for long-term industrial planning. Under its Title III authorities, the department has directed funds to projects like the BamaStar Graphite Project, which received $3.2 million for a feasibility study on creating a fully domestic graphite production pipeline.
Meanwhile, Alaska’s Graphite Creek, the largest known graphite deposit in America, received a $37.5 million award to accelerate development of a vertically integrated supply chain that includes advanced manufacturing and recycling. These projects represent just one part of a broader initiative to address vulnerabilities in the DIB.
These investments reflect a strategic shift in how the department approaches supply chain security. Though historically reactive, the department is now prioritizing prudence, aligning industrial capacity with future needs rather than immediate crises. This shift extends beyond stockpiling raw materials, as it focuses on building infrastructure, partnerships and policies to ensure sustained resilience.
Unveiled in October 2024, the National Defense Industrial Strategy Implementation Plan, is a key framework for this strategic approach. Deputy Assistant Secretary of Defense for Industrial Base Resilience Carla Zeppieri summarized its six initiatives, emphasizing the need for urgency and collaboration. One of the initiatives focuses on “managing defense production and supply chains,” which includes onshoring defense-critical capabilities and enhancing cybersecurity. Zeppieri pointed to the importance of mitigating risks like single points of failure within supply chains, particularly for specialized components vital to military technologies.
The NDIS-IP focuses on allied collaboration is another highlight. “We will leverage our respective strengths into a network of allied DIB capability for mutual effectiveness and resilience,” Zeppieri noted. The framework aligns with the department’s integrated deterrence strategy, especially in the Indo-Pacific region, where adversarial influence on critical materials poses a growing threat.
During the same briefing, Taylor-Kale addressed the broader implications of this strategy “Integrated deterrence, economic security, national security and our nation’s military strength are mutually reinforcing,” she said. The assistant secretary also emphasized the department’s commitment to measuring progress through a risk framework and detailed metrics in a forthcoming classified annex.
The investments are already yielding results. The $37.5 million DPA investment in Graphite Creek has catalyzed plans for a $435 million processing facility and investments in other critical sectors, such as rare earth magnets and microelectronics, have spurred private-sector interest and innovation. Taylor-Kale championed these investments as examples for how “capital allocation today” translates into “exponential gains in resiliency and sustainment tomorrow.”
Supply chain disruptions — from cyberattacks to natural disasters — highlight the interconnectedness of commercial and defense supply chains. Addressing vulnerabilities is a long-term endeavor. “The ripple effects of today’s investments demonstrate how tens of millions of dollars in today’s industrial base investments become hundreds of millions or even billions in resiliency and sustainment,” Taylor-Kale explained.
While challenges — ranging from high costs to regulatory hurdles — remain significant, the department is committed to driving forward. In a July 2023 address, Taylor-Kale framed the stakes succinctly: “Graphite is essential to the national defense. Our investments today are about ensuring resilience and security for tomorrow.”
By leveraging tools like the DPA and fostering public and private collaboration, the United States is reasserting its leadership in critical materials and technologies. These efforts not only address immediate vulnerabilities but also lay the foundation for a more secure and prosperous future. As Taylor-Kale noted during the NDIS-IP briefing, “The evolution from strategy to implementation required lengthy discussions with key players, ensuring a unified collaboration among our partners. This marks a first for defense industrial policy.”
The road ahead demands unwavering commitment and strategic foresight to transform today’s challenges into tomorrow’s opportunities. But in a speech delivered at the SelectUSA Investment Summit last summer, Deputy Secretary of Defense Kathleen Hicks emphasized the sincerity with which the department regards sustainment resilience. “We care more than ever before about the security and resilience of our supply chains,” she said.
By Army Maj. Wes Shinego, DOD News