Canadian firm Graphite One Inc. revealed Monday that it selected Washington State as the location for its new battery anode materials processing plant.

“This is a major step towards our 100% US-based advanced graphite supply chain,” Anthony Huston, president and CEO of the company, said in a release. “Washington State offers the opportunity for Graphite One to use a green energy source – Washington State hydro – to manufacture a green energy material. That’s our core commitment at Graphite One to make our project a model of ESG in action.”

Energy is the biggest cost factor when establishing advanced graphite anode production, according to Graphite One. Because of the presence of hydroelectric generation assets there, Washington State’s average electricity price in 2021 stood at 5.81 cents/KWh compared to the national average of 7.26 cents/KWh.

The facility will be designed to accommodate multiple types of graphite feedstocks for anode production. Its “anchor source” will be a Graphite One graphite resource near Nome, AK.

Discussions are currently underway with state leaders on a potential site for the facility. About 130 roles will be created through the project.