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- EcoGraf (EGR) signs a non-binding cooperation agreement with POSCO International to sell its battery anode material products for an initial term of 10 years
- EcoGraf has agreed to support POSCO’s battery anode material requirements with a supply of up to 40,000 tonnes of battery anode material gradually over the 10-year term
- EGR will utilise POSCO’s engineering, construction, financing, and investment capabilities to advance its project stance in Tanzania
- The cooperation agreement comes after the two companies completed a technical program that assessed EcoGraf’s graphite product performance
- EGR shares are up 13.3 per cent, trading at 7 cents at 2:00 pm AEST
EcoGraf (EGR) has signed a non-binding cooperation agreement with POSCO International to sell its battery anode material products for an initial ten year term.
POSCO International is a multinational industrial company in South Korea and a subsidiary of POSCO Holdings.
The company wishes to secure an eco-friendly battery anode material supplier for its end consumer, POSCO FUTURE M, a leading global manufacturer of natural graphite anodes for lithium-ion batteries used for electric vehicles (EV).
EcoGraf has agreed to support POSCO International’s battery anode material requirements with a supply of 7500 to 12,500 tonnes of battery anode material in the first year of the agreement’s 10-year term.
From years two to five, EGR will supply 12,500 to 20,000 tonnes of battery anode material annually. The final six to ten years will include between 20,000 and 40,000 tonnes of graphite anode material per year.
The companies have been involved in ongoing discussions about areas of collaboration to support the development of EGR’s vertically integrated battery anode materials business.
These areas include the establishment of a global battery anode materials supply chain hub in Tanzania, which involves further development and expansion of EGR’s Epanko graphite mine and the Merelani-Arusha graphite project.
Additionally, EGR will utilise POSCO’s engineering, construction, financing, and investment capabilities to advance its project stance in Tanzania.
The agreement positions POSCO to leverage EcoGraf’s proprietary graphite purification technology.
The cooperation agreement comes after the two companies completed a technical program that assessed EcoGraf’s graphite product performance.
EGR shares were up 13.3 per cent, trading at 17 cents at 2:00 pm AEST.
