Zentek Ltd. (NASDAQ:ZTEK) confirmed that its Albany Graphite subsidiary has achieved nuclear‑grade status, a milestone that allows the company to supply ultra‑high‑purity graphite to nuclear reactors, defense systems, aerospace programs and premium lithium‑ion batteries.
The certification is based on a purity level of 99.9992 % carbon and an equivalent boron concentration of 2.60 ppm, well below the 3 ppm threshold required for nuclear applications. The testing was completed in late 2025 and the final positive results were announced on January 5 2026.
Zentek’s balance sheet shows a cash balance of $2.89 million as of June 30 2025, against current liabilities of $2.62 million. While the company has historically faced liquidity pressure, the new certification could open long‑term supply contracts that would provide a more predictable cash flow stream and reduce reliance on short‑term financing.
CFO and interim CEO Wendy Ford said the achievement “reinforces the significant potential of the Albany Graphite Project” and that the company is “positioning itself to secure high‑margin contracts that can transform its financial profile.”
Investors reacted with cautious optimism. The announcement was viewed as a key technical breakthrough, but the lack of immediate sales and the company’s ongoing liquidity concerns tempered enthusiasm. Analysts noted that while the certification removes a major technical barrier, the path to revenue will depend on securing contracts and navigating the long sales cycles typical of nuclear and defense markets.
The certification also strengthens the United States’ critical‑materials supply chain, positioning Zentek as a domestic alternative to foreign synthetic graphite. If the company can convert this technical validation into commercial contracts, the high‑margin markets could significantly improve its profitability and alter its long‑term growth trajectory.
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