DGAP-News EcoGraf Limited: European Battery Anode Materials Facility
DGAP-News: EcoGraf Limited / Key word(s): Miscellaneous
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European Battery Anode Materials Facility
AUSTRALIAN AND EUROPEAN FACILITIES FORECAST TO COLLECTIVELY PRODUCE 40,000 TONNES OF BATTERY GRAPHITE PER YEAR
EcoGraf Limited (EcoGraf or the Company) (ASX: EGR) is pleased to provide an update following the Company's successful capital raising (refer ASX announcement EGR Successfully Completes A$54.5m Institutional Placement 12 February 2021), which attracted cornerstone investments from a number of significant institutional investors.
The capital raising positions EcoGraf to complete the construction and commissioning of commercial operations at its first facility in Western Australia, based on an initial production capacity of 5,000 tonnes per annum and designed to expand quickly to 20,000 tonnes of battery graphite for the lithium-ion battery market. This production is planned to cater to the expected growth in demand in Asia from the existing investment in battery manufacturing taking place in this region and to early product development requirements in Europe. As previously announced GR Engineering is currently completing the detailed engineering design as a precursor to the commencement of construction.
Along with the substantial growth in Asia, unprecedented investment is currently underway in Europe to establish a self-sufficient and sustainable battery manufacturing supply chain to support the European electric vehicle industry.
Positive legislative developments and attractive incentives have been put in place across Europe to facilitate investment in the EV supply chain within the European Union. This includes a further €2.9 billion in funding support to accelerate productive investment and innovation in the battery supply chain. As a result, and as part of its longer-term business plan, EcoGraf has been for some time evaluating the placement of a second battery graphite production facility in Europe to cater specifically to growth in demand in Europe.