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Production of EcoGraf spherical graphite in Western Australia for direct export to battery anode manufacturers globally

EcoGraf downstream business proposes establishing a processing plant in Kwinana, Western Australia, to produce spherical graphite (SpG) using a new eco-friendly process to sell directly to lithium-ion battery manufacturers. EcoGraf would initially supply existing Asian markets with capacity to expand to supply European markets.
More about EcoGraf
KWINANA DEVELOPMENT
STATE GOVERNMENT SUPPORT
KEY ACTIVITIES

Highlights

  • Two years of pilot test work completed in Germany to optimise its processes and flowsheet to de-risk its proposed development,
  • A new eco-friendly chemical process achieved from  intensive test work and process design to develop cost competitive with to existing Chinese supply.
  • More than 80 product samples sent to battery manufacturers, and extensive product testing by potential partners and customers in Asia and Europe has confirmed the attractiveness of EcoGraf SpG products as a high quality and cost effective alternative to existing Chinese supply.
  • I natural flake graphite sourced from Europe, Africa, Asia and the America’s in its testing process, demonstrating the effectiveness of its technology on wide range of flake graphite
  • Engineering design and costing completed for development sites in Kwinana and Asia before selecting Kwinana as its preferred option for its initial production facility.
  • Subject to a final investment decision expected in the first half of 2020, a staged production facility is proposed to commence at 5,000tpa, quickly expanding to achieve 20,000tpa, with product exported to lithium-ion battery manufacturers in Asia, Europe and the US.
  • Pre-development activities, including engineering, permitting and environmental approvals have commenced.

Spherical Graphite Manufacturing Project

EcoGraf has completed the optimisation study in Germany, which confirmed the successful application of its non-hydrofluoric (“HF”) acid purification process to natural flake graphite supplies sourced from Africa, Asia, Europe and the Americas.

Ongoing test work confirmed the process could consistently produce graphite to battery anode manufacturer specifications. Validation of the process on a range of natural graphite supplies demonstrates the potential to commence operations without reliance on graphite feedstock from the Company’s Epanko project.

“Successful application of EcoGraf purification to other feedstocks was a milestone achievement and the basis of developing EcoGraf as a standalone business”

The optimised flowsheet developed during the test work program was incorporated in an updated global patent application, containing refinements to the 2017 process to satisfy the highest physical and chemical specifications required by anode manufacturers.

Strong interest from potential customers during the 2018 product test work program led Kibaran to evaluate various ramp-up options for the first manufacturing facility, focusing on supporting the existing markets of South Korea, Japan and China. Growth in the electric vehicle (“EV”) market has resulted in higher forecast anode demand and Kibaran incorporated these requirements into design plans for the initial EcoGraf production plant.

A new spheronising batch plant in Germany was successfully commissioned during March, and is consistently producing high quality spherical graphite to support prospective customer and partner testing programs.

GR Engineering recently updated the 2017 study to incorporate the results of the German pilot plant program and completed an updated estimate of capital and operating costs.

GR Engineering’s 2019 capital cost estimate was based on construction of a new EcoGraf production facility in both Asia and Kwinana, Australia using existing sea and land transport infrastructure, water and power supplies.

The additional engineering studies have resulted in a faster ramp-up phase to meet the growing demand requirements of battery anode manufacturers, which has also enabled the Company to increase the capital efficiency of the new EcoGraf development.

Results of the engineering studies have been used to update the EcoGraf financial model, demonstrating a highly attractive return on investment for both locations.

Capital and operating costs adopted in the engineering study were prepared on the basis of independent quotations submitted by equipment vendors and service providers.

The company has secured support from WA Government
Next steps

Kwinana Development

Increasing transparency for ethical raw materials and the Australian Government support for battery minerals value-adding, has resulted in EcoGraf pursing Kwinana, Western Australia as a priority location for the EcoGraf initial production facility.

The Kwinana development schedule outlines a staged 5,000tpa and 20,000tpa production design capacity. Subject to a final investment decision, the Company expects commercial production to begin after 11 months at an initial rate of 5,000tpa. This production will provide commercial quantities to enter the battery manufacturers’ production lines prior to expanding the plant to achieve a production rate of 20,000tpa.   

The Company has received strong support from European customers where major investment is underway in battery manufacturing for electric vehicles.

WA State Government Support

The Kwinana development has secured support from Western Australian Premier Hon. Mark McGowan, who requested the Department of Jobs, Tourism, Science and Innovation (“JTSI”) to provide lead agency support to Kibaran as it develops the project. Premier Mr McGowan said

“The potential to produce battery grade graphite from the Ecograf Battery Graphite Project presents a significant step in diversifying Western Australia’s downstream processing activities and contribution to the global battery value chain.”

Proposed development of EcoGraf at Kwinana is aligned to the WA Government’s Future Battery Industry Strategy to secure Australia an expanded place in the rapidly transforming global battery value chain. 

Key Activities

Key activities are underway with the final investment decision expected in the first half of 2020.

  • Working with LandCorp to finalise lease arrangements for a site within the Kwinana Industrial Area
  • Independent verification process test work and equipment evaluation with major suppliers
  • Local permitting and environmental approvals
  • Offtake and financing arrangements