Milestone: EcoGraf reports successful operation of its graphite product qualification plant!

Graphite makes up around 50% of the total minerals used in a lithium-ion battery. However, not just any graphite will do. A purified spherical graphite is required. This is currently produced in China for the most part using a process that involves highly toxic hydrofluoric acid. However, Australian graphite company EcoGraf (WKN A2PW0M / ASX EGR) has developed a process for the production of spherical graphite that is environmentally friendly and, above all, does not use hydrofluoric acid. An important milestone on the road to commercialization of this process has now been reached!

As EcoGraf announced today, the company has successfully completed an operational campaign in its product qualification facility (PQF) for the continuous production of high-purity spherical graphite without the use of hydrofluoric acid (EcoGraf HFfree). This material was manufactured according to the chemical specifications of a battery anode manufacturer.

EcoGraf has produced high-purity spherical graphite in the PQF on an ongoing basis in this campaign, with the key equipment and materials reportedly working reliably and efficiently. Subsequent analysis of the product manufactured in the plant also confirmed the key chemical and physical specifications that are essential for anode coating.

Successful operating campaign confirms chemical and physical specifications

The company will now continue to operate the plant to obtain additional valuable data for the planned commercial-scale use of the process. EcoGraf had commissioned the PQF last year and during that same time carried out laboratory-scale tests that showed that the HFfree process can achieve high purity levels of up to 99.99% carbon.

But it wasn’t just on an operational level that there was good news. EcoGraf was also able to report that it has – as yet non-binding – agreements to support the sales and development process of a future graphite purification plant. Specifically, it has signed an agreement with an international chemical company for the potential supply of spherical graphite and has also 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 Spinks, talks with a number of automotive manufacturers, battery manufacturers and potential customers from the supply chain continue.

In future, EcoGraf plans to build several graphite purification plants in major battery production centres in Europe, North America and Asia using the EcoGraf HFfree process, which already has a US patent. A number of potential development sites are being considered as the EcoGraf team expects demand for new, non-China graphite products in Europe and North America to increase significantly due to tighter EU legislation and US government tariffs. The strategy of building plants in multiple locations is based on positive customer feedback from product testing and forecasts of higher demand for natural graphite, which offers performance advantages, lower costs and a better carbon footprint.

Another positive point is that EcoGraf IP Australia has 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 the anode recycling application. As previously stated, EcoGraf had already been granted a patent for this in the United States.

The company’s PQF program is jointly funded with the Commonwealth Government through its A$48.9 million Critical Minerals Development Program, which supports Australian companies in establishing battery materials processing capacity. EcoGraf has so far received $2.9 million in funding for its PQF program.

Conclusion: We consider it an important milestone that EcoGraf has achieved the continuous production of high-purity spherical graphite in the PQF to potential customer specifications. We also consider the potential support of the company by its potential customers in its transition to the commercial phase to be very promising. EcoGraf’s HF-free processing technology and vertically integrated development of battery anode materials should offer customers significant cost and environmental benefits. This is to start with the processing of high-quality graphite from the company’s Epanko project in Tanzania in the future. Epanko represents the largest ready for development graphite resource in Africa and EcoGraf has already engaged KfW IPEX-Bank to source a UFK loan of up to US$105 million for the construction of the Epanko mine. It should also be advantageous for EcoGraf that demand for non-Chinese material in Europe and North America is forecast to increase significantly, mainly due to increasing EU legislation and new import tariffs imposed by the US government.