Today, EcoGraf Ltd [ASX:EGR] announced the Australian government has approved Major Project Status for its battery anode material facility.
EcoGraf, based in Perth, is looking to build a vertically integrated graphite business. It has a graphite project in Tanzania, called Epanko. The company is also building a graphite processing facility in Kwinana, Western Australia.
Diversifying away from China
EcoGraf is looking to produce high-purity graphite for the lithium-ion battery market. Its processing facility will manufacture spherical graphite products to export to Asia, Europe and North America. The state-of-the-art plant is set to be the first built outside of China.
In the company’s announcement, Karen Andrews, Minister for Industry, Science and Technology, said approving Major Project Status is recognition of the opportunity for the plant ‘to contribute to the growth of the critical minerals industry in Australia.’
EcoGraf managing director Andrew Spinks said:
‘We are delighted to receive this support from the Australian Government as our development is positioned as an integral part of the downstream modern manufacturing of battery and critical minerals in Australia.
‘EcoGraf’s development strongly aligns with recent legislative policy changes in Europe that require higher standards of environmental and social governance (ESG) in battery supply chains.
‘Unprecedented investment is currently underway to establish self-sufficient and sustainable battery manufacturing supply chains to support the electric vehicle industry.’
EcoGraf has also developed a process to recover graphite from recycling batteries. In recent tests, its proprietary purification process showed results of over 99.95% carbon purity during recycling.
What could happen next to the EGR Share Price?
EcoGraf share price shot up to 64 cents in early trade, an increase of about 7%. At time of writing, though, they’ve gone back down to yesterday’s close at 60 cents. It could have to do with the overall market sentiment.
EVs are rolling out at a fast pace. That, along with the growth of stationary battery storage (BSS), should push demand for graphite in the future. The World Bank is forecasting graphite demand will increase by 500% to 2050.
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For Money Morning