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Export Finance Australia has confirmed that it will consider supplying a loan to EcoGraf (EGR) for its new US$72 million development.
Founded on a commitment to innovation and sustainability, EcoGraf Limited (ASX: EGR) is building a vertically integrated business to produce high purity graphite for the lithium-ion battery market.
The proposed EcoGraf processing facility in Kwinana will produce high purity battery graphite, suitable for use in lithium-ion batteries. The video demonstrates how EcoGraf has the potential to be an integral part of the Western Australian Future Battery Industry Strategy and meet the growing demand for ethical renewable energy storage.
Kibaran Resources (ASX: KNL) plans to rename itself “EcoGraph Limited” after its wholly-owned subsidiary EcoGraph at the upcoming Annual General Meeting on November 29. The name change was intended to send the signal to investors and to future customers that the company wants to stand for the responsible and environmentally friendly production of battery-graphite products, a letter from the board said. The new name should stand for a better visibility of the brand name and highlight the special USPs at first glance.
Managing Director Andrew Spinks recalled that over the past six years, the company has invested $ 25 million to develop two upstream and downstream business models of graphite, first the Epanko mining project in Tanzania and then the EcoGraph cleaning technology. Meanwhile, they have applied for the environmentally friendly cleaning of natural graphite by the EcoGraph technology a corresponding patent. EcoGraph dispenses with the use of hydrofluoric acid when cleaning natural graphite, which is considered to be particularly dangerous. Currently, 100 percent of the natural graphite used in batteries in China is purified by the use of highly toxic hydrofluoric acid. The market volume is estimated to be more than 100,000 tonnes of purified natural graphite per year.
Kibaran’s Kwinana proposed battery graphite processing plant granted ‘Lead Agency Support’ by Government
Kibaran Resources Limited (“Kibaran” or the “Company”) (ASX: KNL) is pleased to announce its EcoGraf Battery Graphite Project has won support from Western Australia Premier Mark McGowan, who has requested the Department of Jobs, Tourism, Science and Innovation (“JTSI”) to provide lead agency support to Kibaran as it develops the project.
Mr McGowan said the Kwinana-based project aligned with the government’s Future Battery Industry Strategy.
“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,” he said.
JTSI is the lead agency for State-significant projects and major resource and infrastructure projects where the proposed investment is significant or of strategic importance to Western Australia.
Kibaran plans to build the graphite processing plant on Perth’s Kwinana industrial strip is based upon feasibility and engineering studies completed by Western Australian Engineering group GR Engineering. The project has a forecast up-front capital cost of US$22.8m for an initial 5,000tpa, followed by a further US$49.2m to expand production to 20,000tpa of battery graphite. Pre-tax net present value is US$141m, generating an internal rate of return of 36.6 per cent and annual EBITDA of US$35m.
The Company expects to make a Final Investment Decision (“FID”) on the project early next calendar year and first production is scheduled for early 2021.
LandCorp, the Western Australian Government’s land development agency, is in the process of allocating Kibaran 6.7ha site in Kwinana to lease. This will enable the Company to expand the plant and undertake further downstream development such as a coating plant, which would add further value to the battery spherical graphite.
Kibaran Managing Director Andrew Spinks said the Western Australia Government’s support would help the Company secure the remaining pre-development approvals and conclude negotiations with Australian and international stakeholders.
It is intended that the Kwinana facility will import natural flake graphite from existing producers and turn it into battery (spherical) graphite using the Company’s patented, environmentally friendly EcoGraf process. Battery graphite is the graphite product used in the manufacturing of anodes for lithium-ion batteries. It is a 99.95% pure graphite product which is shaped and purified to meet the stringent physical and chemical specifications required by battery anode manufacturers enabling it to withstand the intense operating conditions of a battery in an electric vehicle. The final product is intended to be exported to lithium-ion battery customers in Asia, Europe and the United States.
The project’s forecast economic contribution to Western Australia is significant on both an economic and strategic front and is expected to employ more than 250 construction workers and more than 125 direct employees during production as well as its ability to generate sales revenue for over 20 years.
The Western Australian Government has recognised the development of the facility would also provide broader benefits to Western Australia’s industrialisation plans, including:
- Potential production of battery anode material, which is the precursor for battery anode production and consistent with the Future Battery Industry Strategy; and
- Supporting Western Australia as a location for specialised lithium-ion battery manufacturing.
Currently all the world’s supply of battery graphite is produced in China using highly toxic purification process that utilises hydrofluoric acid. There is strong demand from automobile and lithium-ion battery manufacturers in Japan, South Korea and Europe looking to diversify battery mineral supply chains from an alternative supply of battery graphite that is environmentally friendly, in order to reduce their dependency on Chinese supply and to reduce environmental impacts.
Kibaran has spent over 3 years and millions of dollars in perfecting a new eco-friendly and cost competitive purification process. In R&D, in process design, feasibility studies, piloting, product testing and endorsement by anode manufacturers and more recently in engineering and plant design. The project will be staged beginning with 5,000 tpa of battery graphite and expanding to 20,000 tpa.
Based on the current timetable, commercial production of an initial 5,000 tpa will commence 11 months after the FID and expand to 20,000 tpa to meet the forecast growth in demand.
Kibaran’s EcoGraf Lithium Valley announcement last week outlining the development of production of battery graphite in Kwinana, Western Australia is the Company’s third pillar of value as part of its multi-hub battery graphite development strategy.
The flow of global news in the EV industry continues to build and is supportive of Kibaran’s integrated upstream and downstream graphite businesses plans.
Respected Barry Fitzgerald reported “as an aside, Kibaran distinguished itself from the pack earlier this week by unveiling plans for a US$23m graphite-processing plant at Kwinana in WA.
Central to the proposition is its patented EcoGraf technology which does away with the use of particularly nasty hydroflouric acid in the purification process. While it is working on a graphite mine development in Tanzania, feedstock for the Kwinana plant could be sourced from anywhere.”
Kibaran Resources has flagged plans for a $US22.8 million ($32.8 million) graphite processing plant at Kwinana, representing another component of the area’s growing reputation as Australia’s Lithium Valley.
The West Perth-based aspiring graphite producer this morning announced it had secured a 4ha site for the plant 30km south of Perth as part of a broader strategy of becoming a multi-hub producer of battery-grade graphite, with similar facilities planned for Asia and Europe.
The plant will use the company’s globally patented EcoGraf technology, which eliminates the need for expensive and toxic hydroflouric acid in the purification process.
Kibaran said the Kwinana plant would initially produce 5000 tonnes a year of battery-grade graphite, with a further investment of $US49.2 million to boost annual production to 20,000tpa.
The company said the raw graphite would be sourced from producers in South America, Asia, Africa and Europe with the end-product exported to battery manufacturers in Asia, Europe and the US.