EcoGraf (ASX: EGR) is awaiting the delivery of a number of key reports as it continues to progress its global integrated battery anode materials business.
Releasing its activities report for the September quarter, EcoGraf said it expects the release of an independent engineer’s report shortly, as part of the finalisation of a loan from Germany’s KfW IPEX-Bank.
The UFK loan will support construction of EcoGraf’s Epanko graphite project in Tanzania, with the independent engineer’s report a key milestone in the debt-financing process.
Expansion Study Coming
EcoGraf is also expecting the results of an expansion study into the company’s high-value downstream ‘multi-hub’ development strategy.
Those two key actions will come after a successful September quarter that saw the company complete an Epanko resettlement action plan report and receive an Australian patent for its HFfree purification system.
The company’s vertically integrated battery anode materials development model includes the world-class Epanko mine and mechanical shaping facility in Tanzania, along with multiple EcoGraf HFfree purification facilities located in close proximity to EV, battery and anode manufacturers.
The company has already invested more than $45 million in its graphite business, which also includes a mechanical shaping facility in Tanzania and EcoGraf HFfree purification facilities located in close proximity to EV, battery, and anode manufacturers.
The shaping facility will process natural flake graphite into spherical graphite, the first step converting the flake concentrate into the anode material used in the production of lithium-ion batteries.
Positive Financial Metrics
Studies have already confirmed positive financial metrics for a US purification facility to initially process 25,000 tonnes per annum.
With a maiden capital investment including contingency of approximately $145m, the study estimated annual EBITDA of approximately $64.2m from the facility, a pre-tax net present value of $433m, and a 42% internal rate of return.
As it closes in on the development of the purification plant, EcoGraf continues to make significant process design breakthroughs and optimisations, identifying further operating cost reductions of up to 25% compared to a July 2024 estimate.
The company has also received positive feedback from the European Union and US Department of Defence / War on the potential for as much as $116.6m in government grant funding support.
