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Highlights:
Evion Group secures a $2 million deal for the sale of the first 10 weeks of expandable graphite production from its joint venture in India.
The initial 386 tonnes of expandable graphite will be supplied to Germany's Technografit GmbH, a leading European graphite trader.
The company plans to scale production and expand sales, with further contracts anticipated for 2025.
Evion Group (ASX:EVG) has announced a $2 million deal for the sale of the first 10 weeks of expandable graphite production from its joint venture operations in India. The initial 386 tonnes of expandable graphite will be sold to Technografit GmbH, a prominent graphite trading company based in Germany.
The sale price for the graphite ranges from US$3,000 to US$3,300 per tonne, with production costs forecasted between US$1,500 and US$1,750 per tonne. This deal marks a significant milestone for Evion, as it begins to commercialize its production and enter the European market. The news was well-received by the market, with shares climbing nearly 21% to a high of $0.035.
Managing Director David Round emphasized that after two years of careful planning, construction, and testing, Evion's expandable graphite facility near Pune, India, is now fully operational. The facility is designed to produce significant quantities of expandable graphite, which is in high demand for industries such as electric vehicles, aerospace, energy storage, and electronics. The material is also increasingly used as a fire retardant, especially in regions like China, the European Union, Japan, and Korea, where it is mandated for use in building construction.
Evion aims to position itself as a leading producer of graphite-based products outside of China, with plans to secure further sales contracts for the remainder of 2025. The company anticipates selling over 2,000 tonnes of expandable graphite in its first full year of production, generating gross revenue between US$6 million and US$7 million.
In addition to scaling its current operations, Evion is updating its feasibility study to assess the potential for expanding production capacity to 4,000 tonnes per annum. This expansion would allow the company to double its output and generate additional revenue, with capital expenditure requirements estimated between US$500,000 and US$750,000.
The growing demand for expandable graphite in critical industries, coupled with Evion's expanding production capacity, positions the company for future growth in the global market.
