EcoGraf Limited Advances HF-free Battery Anode Materials Business with Cooperation Agreement
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EcoGraf Limited Advances HF-free Battery Anode Materials Business with Cooperation Agreement

Diversified battery anode materials company EcoGraf Limited (ASX: EGR; FSE:FMK; OTCQX: ECGFF) has made significant progress in advancing its vertically integrated HF-free Battery Anode Materials (BAM) business. The company aims to provide an alternative supply to major battery markets in the EU, North America, and Asia.

EcoGraf recently signed a Cooperation Agreement with industrial company POSCO International Corporation, which seeks reliable BAM for its end consumer, POSCO FUTURE M. POSCO FUTURE M is a global leading manufacturer of natural graphite anodes for lithium-ion batteries in electric vehicles. The agreement acknowledges the demand for EcoGraf's BAM, and discussions are underway with POSCO and other battery market participants for long-term supply agreements.

The cooperation with POSCO marks a significant endorsement of EcoGraf's progress and a positive step toward the successful development of Epanko. The Pre-Development Program recently completed at Epanko resulted in a 22% increase in planned initial production to 73,000tpa.

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Epanko also boasts an attractive pre-tax ungeared NPV10 of US$348m (A$511m). The company's team is currently evaluating options for a multi-stage expansion of Epanko to target a production of approximately 300,000tpa.

EcoGraf has received the "Notice of Allowance" from the US Patent and Trademark Office, providing protection for its processing technology. The patent has significant strategic value, as any products made by a patented process and imported into the US would be deemed an infringement. The company has also submitted patent applications in key battery markets worldwide.

The positive outlook for EcoGraf's graphite project developments is supported by recent policies and legislation introduced by the EU Commission and the US Government to bolster new battery mineral supply chains. These policies create opportunities for EcoGraf to supply products to the high-growth North American and European battery markets sooner than anticipated.

As a result, anode and battery manufacturers are accelerating plans to establish additional capacity to comply with the new legislation. EcoGraf is adapting its development strategy to support their demand requirements. This has led to a change in plans for the initial 5,000tpa commercial demonstration BAM Facility in Western Australia. Instead, it will be replaced with a Product Qualification Facility, expected to be commissioned early next year. Simultaneously, partnering discussions continue under the new legislation for the development of a 20-25,000tpa commercial-scale BAM Facility.

EcoGraf has received ongoing support from both State and Commonwealth Governments. The company was awarded a $2. 9m Commonwealth Government grant under the Critical Minerals Development Program for its Product Qualification Facility. It has also obtained conditional approval from Export Finance Australia for an expansion loan of up to US$40m for the proposed commercial-scale Western Australian BAM Facility.

To optimise its graphite supply chain for both industrial and battery markets, EcoGraf plans to undertake mechanical shaping within an Export Processing Zone in Tanzania. Independent Life Cycle Assessment studies have revealed a ~20% reduction in CO2 emissions during the shaping process by utilising Tanzania's cost-competitive hydro-energy. Additionally, Tanzania's location provides an efficient logistics export-hub for global graphite markets.

EcoGraf is also evaluating anode recycling, a field with few companies exploring its potential. Recent results indicate that anode materials can be recycled, which could significantly lower the cost and reduce the carbon footprint of battery manufacturing.

The next few months will be a period of significant activity for EcoGraf as it looks forward to realising the value of its vertically integrated HF-free BAM business. The company aims to establish itself as a reliable supplier in major battery markets and contribute to the development of clean energy solutions.

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