EcoGraf Ltd (ASX:EGR) has entered a Memorandum of Understanding with German trading group TECHNOGRAFIT GmbH for the supply of natural flake graphite feedstock for its proposed battery graphite manufacturing facility in Kwinana, Western Australia.
TECHNOGRAFIT is a leader in trading mineral raw materials, graphite sales and distribution in Europe.
Manager Dominik Georg Luh is the fourth generation of the Luh family, which has been dealing in graphite for 110 years.
TECHNOGRAFIT will supply graphite concentrate feedstock from a range of pre-qualified sources for the phased EcoGraf spherical graphite development in accordance with specifications notified by EcoGraf.
Principle terms include:
- Feedstock prices will be based on prevailing global market prices;
- Feedstock tonnage requirements of up to 10,000 tonnes and increasing up to 40,000 tonnes from 2023;
- Initial term of five years, renewable for a further five years by mutual agreement;
- TECHNOGRAFIT will aid EcoGraf with battery graphite sales, product development programs with prospective customers and sales of by-product fines into higher value carbon markets; and
- Binding agreement expected to be entered into by 30 June 2020.
Graphite feedstock arrangements another milestone
Finalising these graphite feedstock supply arrangements is another milestone in the company’s progress to finance and develop its state-of-the-art 20,000 tonnes per annum battery graphite purification facility in Western Australia.
A detailed financial model has been prepared for the Kwinana funding process that incorporates proposed terms for a US$35 million debt funding package, representing approximately 50% of the total construction cost.
The Kwinana facility will be the first of its kind to be constructed outside of China and will provide a new supply of high quality and cost-competitive purified spherical graphite for the lithium-ion battery market.