EcoGraf (ASX: EGR) and global battery anode materials supplier Mitsubishi Chemical Corporation have executed a non-binding memorandum of understanding (MoU) for the supply, qualification, and potential long-term commercialisation of natural flake graphite, unpurified spherical graphite (SpG), and purified SpG for Mitsubishi’s operations.
The deal supplements an initial letter of intent between the companies that triggered a series of extensive technical discussions and product sample evaluation activities.
Under the terms of the MoU, Mitsubishi will consider a long-term product sales arrangement for 10,000 tonnes per annum of unpurified and purified SpG or approximately 16,500tpa of -100 mesh natural flake graphite.
Mitsubishi is Japan’s largest chemical corporation and a leader in petrochemicals and carbon products, with manufacturing facilities around the world.
It is a leading supplier of anode active material to original equipment manufacturers and recently announced an expansion of its battery anode factory in Kagawa to 11,000tpa from October.
Vertically Integrated Business
The new collaboration supports EcoGraf’s strategy to develop a vertically integrated battery anode materials business comprising its flagship Epanko project in Tanzania.
Epanko is planned to have a graphite concentrate capacity of 73,000tpa during Stage 1 operations.
The company is also planning a mechanical shaping facility to produce unpurified SpG as the first step in the conversion of high-quality flake graphite concentrate into battery-grade anode material used in the production of lithium-ion batteries.
Using EcoGraf’s environmentally-superior EcoGraf HFfree purification technology, the SpG will be upgraded to produce 99.95% (carbon) high-performance anode material to supply electric vehicle, battery and anode manufacturers in Asia, Europe and North America.
‘Positive Technical Engagement’
EcoGraf managing director Andrew Spinks said the MoU was a step in the right direction for both companies.
“We are very pleased to formalise our continued collaboration with Mitsubishi through this MoU,” he said.
“It reflects the positive technical engagement between our teams, and provides a structured pathway to further evaluate opportunities for our battery anode materials, while supporting our strategy to establish long-term relationships with Tier 1 anode and battery manufacturers.”
The company will provide further updates as progress is made.
