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- EcoGraf (ASX:EGR) reveals it will establish a downstream graphite product testing facility in Perth, Western Australia
- Albermarle recently moved a regional headquarters into Perth’s CBD business district; WA is also home to Greenbushes, long the world’s largest lithium mine
- The company expects the commissioning of the plant to kick off in Q1 of CY24 with backing from Canberra
- Shares last traded at 12 cents
Tanzania-based graphite explorer and miner EcoGraf (ASX:EGR) has announced that its graphite anode product qualification facility (PQF) is set to be commissioned during Q1 of CY24 – and it’s going to be based in Perth, Western Australia.
The surprising choice of destination was reached at the conclusion of ‘project planning and procurement activities’; the PQF will support product testing activities enabled by world-class metallurgical equipment.
At the facility, EcoGraf hopes to achieve the gold standard for graphite producers: high-quality spherical graphite, which is difficult to attain but commands incredible premiums in the global market.
Spherical graphite is most readily accepted for battery anodes, which are crucial as they enable the flow of electricity through a battery. Notably, EcoGraf hints it can achieve this without using hydrofluoric acid.
One reason China dominates downstream graphite production is due to lax environmental regulations, given that the refining process is dirty, even by mining standards.
However, if EcoGraf can find a more ESG-friendly route, it could unlock Australia’s aspirations to establish domestic capacity.
The company is optimistic that the establishment of a Perth-based facility will support discussions with other lithium supply chain players internationally. Albermarle recently set up shop in Perth’s prime business district, while the Greenbushes mine continues to operate in the state’s south.
The PQF will be funded through a combination of EcoGraf’s own capital and a Federal Government program lending it $2.9 million as part of the Critical Minerals Development Program.
Graphite is a largely overlooked but crucial component of EV batteries, making it a key metal for decarbonisation and electrification.
Most commentators expect a general rise in graphite prices in the coming years as demand increases, although consensus is mixed on the extent of this rise.
“There is growing recognition of the structural shortage of graphite looming within the battery supply chain from 2025 due to increasing EV adoption rates, with [Benchmark Mineral Intelligence] forecasting the global battery market to grow at a CAGR of ~24 per cent over the next 10 years,” the company wrote on Tuesday.
“To leverage this opportunity, EcoGraf is advancing plans to establish graphite purification facilities in key battery market regions, supported by a long-term and scalable supply of high-quality flake graphite feedstock from Tanzania.”
EcoGraf shares last traded at 12 cents.
