Zentek Forms U.S. Joint Venture to Position Its Albany Ultra-High-Purity Graphite in the North American National-Security Supply Chain
Zentek Ltd. (ZEN) has established Strategic Graphite Partners LLC, a joint venture with ALO Graphite Partners LLC, to create a U.S. footprint for its Albany ultra-high-purity graphite in the energy, defense, and national-security markets. The joint venture is structured with 90% ownership held by Zentek USA Inc., a wholly owned subsidiary of Zentek, and 10% ownership held by ALO Graphite Partners LLC, which is controlled by Perkin Industries and Jeremy Roenick.
The mandate of the new entity centers on U.S. customer engagement, material qualification, offtake discussions, strategic industry engagement, and U.S. government relations. It will also evaluate potential U.S. federal and allied government funding opportunities for allied-sourced Albany material. The Albany asset itself has not been contributed to the joint venture and remains a 100% Zentek-owned Canadian property.
To support these strategic industry and government engagement efforts, Zentek entered into consulting agreements with key partners. Under these agreements, Zentek granted each consultant, Jeremy Roenick and Nicolas Perkin, 50,000 stock options. These options are exercisable for 24 months at C$0.56 per common share and vest in tranches based on ALO Partners achieving aggregate capital contribution milestones to the joint venture.
The move comes as graphite is designated a critical mineral in the U.S., Canada, and allied nations. The U.S. is currently 100% reliant on imports, with China supplying approximately 50% of that supply. Albany material is purified to 5N+ (99.9992% Cg), consistent with nuclear-grade specifications, targeting high-specification defense and energy markets rather than commodity or battery-anode graphite. The Albany Preliminary Economic Assessment (PEA) is targeted for completion in summer 2026.
Moe Jiwan, CEO of Zentek, stated, "Strategic Graphite Partners gives allied-sourced Albany material a footprint inside the U.S. value chain, where it can be qualified by U.S. customers and emerging government-supported programs. Albany remains a 100% Zentek-owned Canadian asset."
Nic Perkin, Chairman and CEO of Perkin Industries, commented, "Over the last couple of years, Perkin Industries has shifted towards US-based infrastructure investments, including those in critical elements of National Defense. In analyzing this transaction, it became clear to us that unrestricted access to military grade graphite is not a 'nice to have' - but a 'must have,' for our National Security."
Jeremy Roenick added, "I have spent my career on both sides of the Canada-U.S. border, and that partnership has always been our greatest strength. Giving American energy and defense customers a secure, allied source of the highest-grade graphite is exactly the kind of work I want to be part of. Albany is that source, and Strategic Graphite Partners is how we put it in the hands of the customers who need it."