Australian graphite business EcoGraf Limited (ASX: EGR) has announced that it has secured government support for funding of development and expansions work at its planned spherical graphite battery anode material facility in Kwinana, Western Australia.
The new state-of-the-art facility will produce high-purity battery anode material using the company’s proprietary EcoGraf purification process, with exports targeted to the United States, Europe and Asia.
The initial construction timeframe for the facility is eleven months, followed by commissioning and final product qualification. Upon completion, the company will embark on an expansion program to reach its ultimate target of 20,000tpa.
Funding in place
EcoGraf will use its existing cash reserves from the successful AUD$54.6 million institutional placement completed in February 2021 to fund its initial development phase, with the expansion phase expected to be financed through a combination of cash reserves and loan funding supported by Australian Government agency Export Finance Australia.
After examining the planned development, including feasibility and engineering studies, EcoGraf received a conditional non-binding letter of support from Export Finance Australia that would assist it in securing a USD$35 million loan facility.
Battery Anode Material Facility
As the first of its type globally, EcoGraf’s new battery anode material facility will supply electric vehicle and battery manufacturers with high-performance and sustainably-manufactured spherical graphite anode material products for lithium-ion batteries.
To meet the global demand for clean energy, the company plans to expand battery graphite production capabilities throughout Europe and North America in the coming decade.