Evolution Energy sees greater interest from graphite investors, buyers

Evolution Energy Minerals (ASX:EV1) is ramping up its financing process for the Chilalo Graphite Project in Tanzania on the back of rising interest from investors and end users.

The company has engaged Treadstone Resource Partners to assist in securing additional financing support for the development of Chilalo. 

CEO Phil Hoskins says Evolution Energy is witnessing “increased inbound interest from strategic investors” following recent changes in the global graphite and anode supply chain, and a previous investment and offtake deal with China’s BTR New Material Group.

“I am pleased with the level of graphite market understanding demonstrated by these interested parties, acknowledging that coarse flake graphite, such as that which will be produced at Chilalo, is essential for the economic viability of graphite mines,” he says. 

“There is a significant amount of technical and project information available for potential investors to review, and I am confident that the strategic process will generate significant investment interest.” 

Graphite makes up nearly 100% of the anode of a battery and accounts for between 25% and 28% of the total battery used in an electric vehicle. This amounts to about 50kg to 100kg of graphite per battery, with 10 to 15 times more graphite than lithium required in an EV battery.

Benchmark Mineral Intelligence forecasts the shortfall in graphite supply will widen to 8 million tonnes by 2040.

In August 2023, Evolution Energy announced it struck a deal with battery anode maker BTR, which will acquire a 9.9% stake in Evolution Energy and has agreed to buy all of the fine flake graphite production from Chilalo until the proposed downstream facility is commissioned. 

Evolution Energy is progressing the Chilalo Project through to a decision to mine.

The company is currently engaged in discussions with potential strategic investors at varying stages of due diligence.

Evolution Energy says the debt financing process has advanced with reports from independent technical engineers Palaris and independent environmental and social consultant Prime Resources completed in the first quarter of 2024.

“These technical reports, along with due diligence conducted by banks, bolsters confidence in the company’s prospects of securing debt finance,” Evolution Energy says. 

Meanwhile, Hoskins is transitioning from Managing Director to CEO and major shareholder ARCH Sustainable Resources Fund has nominated Robin Birchall as a non-executive Director, replacing Cameron Dowling as the investor’s nominee.

Write to Angela East at Mining.com.au 

Images: Fastmarkets
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Written By Angela East
Managing Editor Angela East is an experienced business journalist and editor with over 15 years spent covering the resources and construction sectors and more recently working as a communications specialist handling media relations for junior resources companies.