Support Agreement with Potential Customers
Graphite accounts for about 50% of the total content in a lithium-ion battery. However, not just any graphite can be used. A purified spherical (or ball) graphite is required. This is currently produced almost entirely in China using a process that employs highly toxic hydrofluoric acid. The Australian graphite company EcoGraf (ASX EGR / WKN A2PW0M) has developed a process over the past seven years to produce spherical graphite that is environmentally friendly and, most importantly, does not use hydrofluoric acid. Now, an important milestone has been reached on the path to commercializing this process!
As EcoGraf announces today, they have successfully completed an operational campaign in the company’s Product Qualification Facility (PQF) for the continuous production of high-purity, spherical Graphite without the use of hydrofluoric acid (EcoGraf HFfree). This material was produced according to the chemical specifications of a battery anode manufacturer.
In the PQF, EcoGraf produced high-purity spherical graphite on a continuous basis, with the crucial equipment and materials functioning reliably and efficiently, according to the company. Subsequent analysis of the product manufactured in the facility also confirmed the critical chemical and physical specifications essential for anode coating.
Successful Operational Campaign Confirms Chemical and Physical Specifications
The company will now continue to operate the facility to gain additional valuable data for the planned implementation of the process on a commercial scale. EcoGraf commissioned the PQF last year and simultaneously conducted laboratory-scale tests that showed the HFfree process could achieve high purity levels of up to 99.99% carbon.
But there was good news not only on the operational front. EcoGraf was also able to report that it has – non-binding – agreements to support the sales and development process of a graphite purification plant. In detail, the company has signed an agreement with an international chemical company for the potential supply of spherical graphite and, additionally, received a letter of support from a major battery manufacturer regarding the construction of an EcoGraf HF free plant.
Potential Customers Could Support Further Commercialization Process
At the same time, according to Managing Director Andrew Spingks, discussions continued with a number of automotive manufacturers, battery manufacturers, and potential customers from the supply chain.
For the future, EcoGraf plans to establish multiple graphite purification plants in major battery production centers in Europe, North America, and Asia using the EcoGraf HFfree process, which already has a US patent. The company is considering a range of potential development sites, as the EcoGraf team anticipates that demand for new, non-Chinese graphite products will increase significantly in Europe and North America due to stricter EU legislation and US government tariffs. The strategy of establishing plants at multiple locations is based on positive customer feedback from product tests and forecasts of higher demand for natural graphite, which offers performance advantages, lower costs, and a better CO2 footprint.
Another positive point is that, according to EcoGraf, IP Australia recently announced that it has accepted the company’s second patent application filed in Australia. This provides additional coverage for the EcoGraf HFfree® purification process, including its application for anode recycling. As mentioned, EcoGraf had already received the patent for this in the USA.
The company’s Product Qualification Facility is jointly funded with the Commonwealth Government through its AUD 48.9 million Critical Minerals Development Program, which supports Australian companies in building capacity for processing battery materials. EcoGraf has so far received funds of $2.9 million for its PQF program.
Conclusion: We consider it an important milestone that EcoGraf has achieved continuous production of high-purity, spherical graphite without the use of HF in the PQF according to potential customer specifications. We also view the potential support for future customers of the company in transitioning to the commercial phase as very promising. EcoGraf’s HFfree processing technology and vertically integrated development of battery anode materials are intended to offer customers significant cost and environmental protection benefits. This is expected to begin with the future processing of high-quality graphite from the company’s Epanko project in Tanzania. Epanko is Africa’s largest development-ready graphite resource, and EcoGraf has already commissioned KfW IPEX-Bank to secure a UFK loan of up to $105 million for the construction of the Epanko mine. It should also be advantageous for EcoGraf that demand for non-Chinese material is predicted to increase significantly in Europe and North America – primarily due to increasing EU legislation and new import tariffs from the US government.
