- EcoGraf (EGR) and GR Engineering (GNG) have signed a letter of intent for the development of a battery graphite facility
- The agreement is for an engineering, procurement and construction contract for facility’s development in Western Australia
- EcoGraf, formally Kibaran Resources, is finalising arrangements with the state government’s land development agency for a site in Kwinana
- Shares in EcoGraf are down 5.19 per cent today worth 7.3 cents each while shares in GR Engineering are riding the grey line at 29 cents per share
EcoGraf (EGR) and GR Engineering (GNG) have signed a letter of intent (LOI) for the development of a battery graphite facility.
The LOI is for an engineering, procurement and construction contract for the development of a facility in Western Australia with a processing capacity of 20,000 tonnes per annum.
EcoGraf, formally Kibaran Resources, said in a statement today that the company is finalising details for a proposed site in Kwinana with the state government’s land development agency.
In September 2019, the facility won the support of Premier Mark McGowan who said it aligned with the government’s Future Battery Industry Strategy.
The company is working to develop a vertically integrated business to produce graphite for the lithium-ion battery industry.
Earlier this month, EcoGraf partnered with the Future Battery Industries Cooperative Research Centre, located at Curtin University.
The partnership will see EcoGraf provide the research hub with technology for research into improving battery mineral extraction and refinement.
The planned facility in Kwinana will manufacture spherical graphite products for export to Asia, Europe and North America. It is forecast to have a pre-tax net present value of US$141 million (AU$204.02 million).
The project is estimated to generate an internal rate of return of 36.6 per cent and annual EBITDA of US$35 million (AU$50.62 million).
This is based on an upfront capital cost of US$22.8 million (AU$32.99 million) for an initial 5000 tonnes per annum and a further US$49.2 million (AU$71.19 million) to reach full production capacity.
In addition, the project is forecast to directly employ more than 250 workers during construction.
Further down the line, EcoGraf intends to open processing facilities in Europe and North America.
Shares in EcoGraf are down 5.19 per cent today worth 7.3 cents each, while shares in GR Engineering are riding the grey line at 29 cents per share at 1:20 pm AEDT.