Scoop: Graphite One eyeing up to $25M raise following Defense funding

Mining company Graphite One plans to raise $15 million to $25 million to fulfill its part of a Defense Department grant.

Why it matters: The Anchorage, Alaska-based startup is aiming to become America's first new source of graphite for electric vehicle batteries.

Flashback: Graphite One yesterday was selected to receive a $37.5 million grant under the Defense Production Act to accelerate development of a planned graphite mine in Alaska.

Of note: The grant effectively works as reimbursement: Graphite One collects $0.50 for every dollar it spends, CEO Anthony Huston tells Axios.

The latest: Graphite One is planning an imminent equity round to raise the required matching funds.

• The startup plans to begin raising this quarter. It's "in discussions" with new and existing investors, Huston says.

Details: Potential new backers include private equity, institutional investors, and strategics that would use the graphite that Graphite One produces.

What they're saying: The total target will depend on Graphite One's market value, which was hovering around $148 million yesterday.

• "We don’t want to dilute too heavily. It depends on our market cap and where our stock is at," Huston says.

Separately: Alaska's congressional delegation scored another energy win with the Graphite One grant, Axios' Jael Holzman writes in Pro Energy Policy