- EcoGraf (EGR) receives an independent study confirming it can produce spherical graphite for sale into the EV battery markets
- Graphite is turned into a foil and used in batteries such that it is recognised as a ‘forgotten battery metal’
- Creating spherical graphite is an intensive process difficult to recreate without a fully-fledged plant and cheap power
- The company is now seeking to base its downstream refining operations in Tanzania to take advantage of some of the world’s cheapest hydropower electricity
- The company perceives it can drop OpEx by 50 per cent and overall emissions by 20 per cent
- Shares last traded at 11 cents
EcoGraf (EGR) has announced the results of a study into its ability to produce unpurified active anode material for the EV battery market, demonstrating the company’s capability to reduce overall operational expenditure costs for its Epanko graphite project.
Located in Tanzania, the company’s commissioned mechanical shaping study has revealed that the company can produce up to 20,000 tonnes of product per year using a processing facility to create spherical graphite and fines from natural flake graphite.
“Mechanical micronising and shaping is the first step in the conversion of high-quality flake graphite concentrate into battery grade anode material used in the production of lithium-ion batteries,” the company wrote on Monday.
“After mechanical shaping, the spherical graphite is then shipped to the global battery manufacturing hubs where the company is evaluating to locate its patented purification technology in Europe, Asia and North America to produce active anode material.”
Moreover, the study outlines to EcoGraf that it can reduce its operating costs by up to 50 per cent by locating downstream activities entirely in Tanzania, where electricity prices are lower.
The company notes that Tanzania’s government-owned utility, TANSECO, has more than 1700 MW of power available, with a significant portion of that coming from renewable sources.
The country’s Julius Nyerere hydro project is also slated for completion next year, adding another 2100 MW to the grid.
Utilising hydro energy, EcoGraf, which is already positioning itself as an ESG-conscious player, can also reduce emissions by 20 per cent in this manner.
The company also plans to take advantage of Tanzania’s investment-attracting export processing zones, which grant companies exemptions on corporate tax and equipment duties for up to 10 years.
The company remains in the diligence process to select a final development site, subject to the proper execution of all regulatory steps.
EGR shares last traded at 11 cents.