- BlackEarth (BEM) is teaming up with Metachem Manufacturing Company to commence the development of a new graphite plant
- This new processing facility is to meet the demand from Europe based groups
- The parties are aiming to form a joint venture within the next two months
- This development will position BlackEarth as the first producer of commercial levels of expandable graphite listed on the ASX
- On the market this morning, BlackEarth is up 4.35 per cent and is trading at 12 cents per share at 11.45 am AEST
BlackEarth (BEM) has teamed up with Indian based company Metachem Manufacturing Company to commence the development of a new graphite plant.
The parties have signed a memorandum of understanding (MOU) agreement to start the plant construction and production of expandable graphite, and have an intention to sign a joint venture agreement within 180 days.
Metachem is a leading producer of expandable graphite and other downstream products with 20 years production experience and sales in Europe, Asia and the US.
Expandable graphite is a form of intercalated graphite and its demand continues to grow. Around 35 per cent of expandable graphite production is processed into fire retardants. This is the single biggest end-market for expandable graphite.
The remaining product is processed into flexible graphite which used in a number of end products such as graphite foils for use in the automotive, EV and alternative energy sectors.
The new processing facility is to meet the demand from European based groups.
Notably, this development will position BlackEarth as the first producer of commercial levels of expandable graphite listed on the ASX.
“This is a ground breaking agreement between two companies committed to the growth and development of this important high value commodity to fuel the world wide demand for downstream graphite products,” Managing Director Tom Revy said.
“The BEM Executive team has been in discussions with the Directors of Metachem for some time now and we are impressed with their professionalism, technical expertise and market presence in the world’s largest democracy
“This planned production site complements our other interests in the US and Europe, and further positions BlackEarth as a leading provider of graphite concentrate and a range of downstream graphite products over the forthcoming decades.”
On the market this morning, BlackEarth was up 4.35 per cent and trading at 12 cents per share at 10:45 am AEST.