Evion Group (ASX:EVG) continues to grow production and sales at its Expandable Graphite Joint Venture operations in India, with its first shipment to new customers in Asia imminent.
Expanded graphite is a modified form of natural graphite, created by interacting it with chemicals and then rapidly heating it. This process causes the graphite material to expand.
Increased shipping volumes and orders are, according to Evion, reflective of the growing demand in Asia for secure, non-Chinese sources of critical minerals.
Evion, which has a market capitalisation of $12.86 million, is continuing to negotiate with its buyers in the US to meet their volume requirements.
Under the company’s stage two expansion plans, equipment is in place and available for installation in the short-term.
Over the last month, Evion has undertaken a range of testing for new buyers in Asia. All of the results have been “positive” and Evion expects new orders to be received in the short-term.
Managing Director David Round says Evion is looking to grow its presence in the US, with support from customers looking to re-establish domestic supply channels.
“We have since secured an order for an initial shipment to an Asian country that has traditionally relied on supply from other sources within Asia,” Round says.
“This is a potential large market which we believe will be added to our growing list of buyers. We have also conducted a range of test results with a number of new buyers in the Asia markets over the last few months. We’ve now reached the qualification stage with these globally significant companies and expect a range of orders in the short-term.”
Evion’s Panthera Graphite Technologies joint venture has a more than 21 year project life, with a net present value of US$100 million ($151.18 million) and an internal rate of return of 571%.
Evion Group is a vertically integrated graphite developer focused on its assets in Madagascar, India, and Europe.
Write to Aaliyah Rogan at Mining.com.au
Images: Evion Group
