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There has been a robust market focus on battery minerals in recent years, with a radical shift in transport technology to battery storage and electric vehicles for the renewable energy sector. An Australian-headquartered firm EcoGraf Limited (ASX:EGR) is tapping this lucrative market opportunity, with an intention to become a key supplier of environmentally sustainable graphite to booming battery and electric vehicle industry.
For achieving this goal, the Company is building vertically integrated businesses, comprising EcoGraf and TANZGraphite, to produce battery graphite for the lithium-ion market. The Company has spent about six years and more than USD 25 million to build these extremely attractive graphite businesses that are now ready for development.
The company recently changed its name from Kibaran Resources (ASX:KNL) in line with its battery graphite strategy.
EcoGraf: Well-Positioned to Tap Robust Market Opportunities in Battery Market
The global expansion of electric vehicle markets is reliant on battery graphite, which is processed from natural flake graphite into a 99.95 per cent high purity product suitable for anode manufacturing. Moreover, each electric vehicle needs 27kg of natural (spherical) graphite, which further requires 54kg of natural graphite feedstock.
Currently, the natural graphite used in battery anode is only sourced from China, which uses a very toxic purification process (hydrofluoric or HF acid) to achieve Carbon grade of 99.95 per cent. In China, most of the natural graphite is produced in Hubei and Shandong, wherein producers are increasingly under pressure due to occupational and environmental health & safety regulations.
As the demand for battery graphite is expanding across the globe, the customer requirement is also increasing for more geographically diversified, new and eco-friendly sources of high-grade supply. In addition, anode manufacturers outside China are also seeking for an alternative non-Chinese supply which is ecological.
The Company has devoted its three years and many millions of dollars in refining a new environmentally sustainable and non-HF acid purification process, that is cost competitive in comparison to Chinese products. The purification process, trademarked as EcoGraf (patent pending), has been tested for successful application to natural flake graphite supplies sourced from Afro-Eurasia.
The Company has planned to build EcoGraf’s initial production facility within Kwinana, Western Australia (WA), wherein graphite will be procured and processed from numerous suppliers and will be exported to lithium-ion battery customers in the North America, Asia and Europe.
The pre-development activities for Kwinana manufacturing facility, including engineering, permitting and environmental approvals are currently in progress, with Final Investment Decision expected to be secured in 1H CY2020.
Kwinana Manufacturing Facility Strongly Supported by WA Government
The WA Government is offering significant support for EcoGraf’s first production facility in Kwinana, which presents a considerable step in diversifying state’s downstream processing activities and contribution to the global battery value chain.
The WA government has recognised that the development of production facility will provide broader benefits to support the state’s industrialisation plans, comprising:
- Supporting WA as a location for dedicated lithium-ion battery manufacturing.
- Potential production of battery anode material.
WA Premier Hon. Mark McGowan had also requested the Department of Jobs, Tourism, Science and Innovation to provide lead agency support to the Company as it fosters the development of project.
Moreover, the planned development of Kwinana production facility is in harmony with the Future Battery Industry Strategy of WA’s government, targeted to secure the country as an expanded place in the quickly transforming battery value chain across the globe.
Besides progressing with the development of Kwinana production facility, EcoGraf is also planning to expand its battery graphite production base to include additional facilities in Europe and North America to support the global transition to renewable energy in the coming decade.
EGR last traded at $0.08 on 30th December 2019.
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