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EcoGraf (ASX:EGR) $2.9m Federal grant boosts EcoGraf’s role in Australia’s clean energy transformation

ASX News, Materials, Renewable Energy
ASX:EGR      MCAP $39.96M
18 May 2023 17:02 (AEDT)

Source: EcoGraf

EcoGraf (EGR) has been chosen among 13 successful applicants to receive funding from the Australian Federal Government as part of its $48.9 million critical minerals development program.

The program is designed to address the increasing global demand for minerals essential for clean energy technologies, including electric vehicles and batteries, and foster the growth of Australia’s critical minerals processing sector.

The Federal Minister for Resources and Northern Australia, the Honourable Madeleine King, stated the projects would create jobs and opportunities across regional Australia and help the country to become a clean-energy powerhouse.

EcoGraf will receive a grant of $2.9 million to fund its battery anode material product qualification facility. This is expected to play a role in securing offtake agreements for its planned commercial-scale purification facilities in major global battery markets.

EcoGraf plans to produce environmentally superior battery anode materials by sourcing high-purity graphite feedstock from its Epanko graphite project in Tanzania.

The total cost of the facility is anticipated to come to $5.8 million, and discussions with potential customers for anode materials, batteries, and electric vehicles in Europe, North America, and Asia are underway.

“The successful projects will create jobs and opportunities across regional Australia and help Australia realise its ambitions to be a clean-energy superpower,” Ms King said.

“The 13 projects to receive funding under the critical minerals development program grants include plans to produce key inputs to lithium-ion batteries for electric vehicles, and to support supply chains for advanced manufacturing for aerospace, medical, energy and defence applications.”

Under the program, applicants will receive up to 50 per cent of funding for eligible project expenditures, and the government claims the program would aid Australia and its export partners in lowering emissions to meet net-zero commitments by 2050.

EGR shares closed at 16.5 cents on May 18.

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