EcoGraf Share Price is Up 10% on ‘Outstanding’ Test Results
Shares of EcoGraf Ltd [ASX:EGR] are up 10% today at time of writing, after announcing their anode recycling program delivered ‘outstanding’ results.
Perth-based EcoGraf is looking to build a vertically integrated graphite business. They fully own Epanko graphite project in Tanzania. The company is also building a graphite processing facility in Kwinana, Western Australia to produce high-purity battery graphite. This is set to be the first built outside of China, exporting to Asia, Europa, and North America.
What happened today?
The company recently performed some tests on their proprietary purification process, which showed results of over 99.95% carbon purity during recycling. This is great news since, according to the company, this confirms the effectiveness of their process in recouping graphite anode material to be reused in lithium-ion batteries for EVs.
As the company said, these results are quite crucial:
‘EcoGraf’s recycling strategy is supported by recent European Union Commission legislative changes that require increased levels of battery waste recovery to be achieved, with targets to be increased to 65% by 2025 and 70% by 2030.The stricter regulations demonstrate Europe’s intention to improve sustainability across the lithium-ion battery life cycle and encourage electric vehicle and battery manufacturers to contribute towards a climate neutral economy through greater battery recycling.
‘As the battery represents over 40% of the total carbon (CO2) emission footprint of a typical electric vehicle, the benefits in re-using this production waste are significant and will contribute to both a reduction in battery unit costs and carbon emissions.’
What could happen next?
The announcement has given quite a boost to the company, which is showing in the share price. At time of writing, EcoGraf’s shares are trading at 46 cents.
In fact, since the beginning of the year the company’s shares have shot up over 150% mostly because of higher graphite prices. Benchmark Mineral Intelligence expects the battery industry to become the biggest sector of demand for graphite, increasing demand to 15-times by 2030.
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For Money Morning