HydroGraph Provides Update on Expanded U.S. Federal Government and Defense Focus, Calls for Graphene to Be Designated a Critical Material

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HydroGraph Clean Power (OTCQB: HGRAF) reported an expanded focus on U.S. federal government, aerospace, and defense markets, highlighting graphene’s role in national security and domestic supply chains. The company is urging U.S. policymakers to designate graphene a critical material to reduce reliance on foreign graphite supplies, especially from China, which accounts for about 80% of global graphite and faces possible export licensing restrictions from November 2026.

According to HydroGraph, it can produce high-quality graphene from U.S.-sourced hydrocarbon gases instead of mined graphite, offering a fully domestic pathway. The company cites performance gains in strength, conductivity, lubrication, and protection, and calls for three policy steps: Defense Production Act critical-material status, funded qualification pilot programs, and a national graphene innovation and research institute.

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States that Secure Domestic Supply of High-Performance Graphene Is A Key Component to National Security and Reduced Foreign Dependence

AUSTIN, Texas, July 23, 2026 (GLOBE NEWSWIRE) -- HydroGraph Clean Power Inc. (CSE: HG) (OTCQB: HGRAF) (“HydroGraph” or the “Company”) today provided an update on its activities in the federal government and aerospace & defense markets as part of its expanded focus on United States national strategic interests and domestic supply chain initiatives.

HydroGraph is encouraging U.S. policymakers to designate graphene a critical material as part of the nation’s broader strategy to reduce the defense industrial base exposure to foreign-controlled graphite supplies and other minerals. The vast majority of graphene produced today is derived from graphite.   Approximately 80% of the global graphite supply is sourced from China¹, which is currently scheduled to become subject to export licensing restrictions in November 2026 unless the current temporary suspension of those regulations is extended.

HydroGraph has demonstrated that high-quality graphene can be produced today from U.S.-sourced hydrocarbon gases rather than mined graphite, providing a fully domestic pathway to the advanced materials needed for next-generation American defense manufacturing.

HydroGraph graphene has shown significant improvements in material strength, thermal and electrical conductivity, lubrication, and protection for applications ranging from lightweighting of aerospace structures, electromagnetic shielding, protective coatings, thermal management, lubricants, and infrastructure. The nano-scale fractal graphene produced by HydroGraph allows for better dispersion versus larger size graphene produced from graphite feedstocks. Better dispersion of fractal graphene allows for mechanical, thermal, and conductivity benefits to be realized at very low loadings, often at under 0.1%.²  

"This is bigger than any one program or platform — it's about whether the United States controls the materials critical to its defense industrial base," said Dr. Robert Yancey, Vice President of Business Development – Government and Defense at HydroGraph. "China's export licensing suspension isn't a resolution, it's a reprieve. The legal authority to reimpose graphite export controls remains fully intact and can be activated with 30 days' notice. Domestic graphene addresses that vulnerability at the source, because the feedstock is hydrocarbon gas, not mined graphite, so there's no upstream exposure to China."

HydroGraph also noted that the United Kingdom, the European Union, South Korea, and China have each launched government-funded national graphene programs, while the United States has not. The company is calling on U.S. policymakers and defense stakeholders to take three near-term actions to close that gap: 1) formally designate graphene as a critical material under the Defense Production Act; 2) fund qualification pilot programs to validate graphene across priority defense applications; and 3) establish a dedicated national graphene innovation and research institute to align materials science with long-term industrial and security needs.

"The research base already exists in U.S. universities, national labs, and government research centers — this is not a scientific gap, it's a policy gap," said Kjirstin Breure, Chair, President, and CEO of HydroGraph. "China, the EU, South Korea, and the UK are already treating graphene as a strategic material central to their national security planning. The United States still has a first-mover advantage in fielding domestic graphene at scale, but that advantage shrinks every month we wait. We believe securing this supply chain now is one of the clearest, most achievable steps the U.S. can take to protect its long-term national security."

About HydroGraph
HydroGraph is a leading producer of pristine graphene using an “explosion synthesis” process, which allows for exceptional purity, low energy use, and identical batches. The quality, performance, and consistency of HydroGraph’s graphene follow the Graphene Council’s Verified Graphene Producer® standards, of which very few graphene producers are able to meet. For more information or to learn about the HydroGraph story, visit: https://hydrograph.com/. For company updates, please follow HydroGraph on LinkedIn at https://www.linkedin.com/company/hydrograph/ and X at https://x.com/HydroGraphInc.

Trademarks: HydroGraph™ and Fractal Graphene™

Forward-Looking Statements
This release contains certain “forward-looking statements” and certain “forward-looking information” as defined under applicable securities laws. Forward-looking statements and information can generally be identified by the use of forward-looking terminology such as “may”, “will”, “expect”, “intend”, “estimate”, “upon”, “anticipate”, “believe”, “continue”, “plans” or similar terminology, including statements regarding HydroGraph’s expanded U.S. federal government and defense focus and potential defense application of graphene.

Forward-looking statements and information are based on forecasts of future results, estimates of amounts not yet determinable, and assumptions that, while believed by management to be reasonable, are inherently subject to significant business, economic, and competitive uncertainties and contingencies. Forward-looking statements and information are subject to various known and unknown risks and uncertainties, many of which are beyond the ability of HydroGraph to control or predict, that may cause HydroGraph’s actual results, performance or achievements to be materially different from those expressed or implied thereby, and are developed based on assumptions about such risks, uncertainties and other factors set out herein, including but not limited to: HydroGraph’s ability to implement its business strategies; risks associated with general economic conditions; actions taken or not taken by the U.S. federal government, adverse industry events; stakeholder engagement; marketing and transportation costs; loss of markets; volatility of commodity prices; inability to access sufficient capital from internal and external sources, and/or inability to access sufficient capital on favorable terms; industry and government regulation; changes in legislation, income tax and regulatory matters; competition; currency and interest rate fluctuations; and other risks. HydroGraph does not undertake any obligation to update forward-looking information except as required by applicable law. Such forward-looking information represents management’s best judgment based on information currently available.

No forward-looking statement can be guaranteed, and actual future results may vary materially. Accordingly, readers are advised not to place undue reliance on forward-looking statements.

CONTACTS:
Matt Kreps
HydroGraph
Senior Vice President
+1-214-597-8200
matt.kreps@hydrograph.com
                
Len Fernandes
Firecracker PR for HydroGraph
len@firecrackerpr.com
888-317-4687        

---

¹ https://worldpopulationreview.com/country-rankings/graphite-production-by-country
² https://www.hydrograph.com

FAQ

What update did HydroGraph (OTCQB: HGRAF) provide on its U.S. government and defense focus on July 23, 2026?

HydroGraph announced an expanded focus on U.S. federal government, aerospace, and defense markets, emphasizing graphene’s importance for national security. According to HydroGraph, it is engaging policymakers and stakeholders to integrate domestically produced graphene into U.S. defense supply chains and strategic planning.

Why is HydroGraph (HGRAF) calling for graphene to be designated a critical material in the United States?

HydroGraph is urging U.S. policymakers to classify graphene as a critical material to strengthen defense supply chains. According to HydroGraph, this would help reduce exposure to foreign-controlled graphite, especially from China, and support domestic production for advanced military and aerospace applications.

How does HydroGraph’s graphene production support U.S. national security and the defense industrial base (HGRAF)?

HydroGraph produces graphene from U.S.-sourced hydrocarbon gases, avoiding dependence on mined graphite imports. According to HydroGraph, this domestic feedstock reduces upstream exposure to potential Chinese export controls and supports secure access to advanced materials for next-generation American defense manufacturing.

What properties of HydroGraph’s graphene are highlighted for defense and aerospace applications (HGRAF)?

HydroGraph highlights improvements in material strength, thermal and electrical conductivity, lubrication, and protection at low loadings. According to HydroGraph, its nano-scale fractal graphene disperses efficiently, enabling benefits in lightweighting aerospace structures, electromagnetic shielding, protective coatings, thermal management, lubricants, and infrastructure.

What specific policy actions is HydroGraph (HGRAF) asking U.S. policymakers to take on graphene?

HydroGraph is calling for three actions: Defense Production Act critical-material designation, funded qualification pilot programs, and a national graphene innovation institute. According to HydroGraph, these steps would align U.S. policy with existing graphene strategies in China, the EU, South Korea, and the UK.

How does China’s graphite export situation impact HydroGraph’s advocacy efforts for graphene (HGRAF)?

HydroGraph notes that about 80% of global graphite comes from China, facing possible export licensing restrictions. According to HydroGraph, this vulnerability justifies prioritizing domestic graphene from hydrocarbon gas feedstocks to protect the U.S. defense industrial base from future supply disruptions.