EcoGraf, GR sign graphite agreement

EcoGraf, formerly Kibaran Resources, has signed a letter of intent with GR Engineering Services for its proposed battery graphite facility in Kwinana, which is budgeted to cost just more than $100 million.

The development is one of several potential battery projects planned for the Kwinana industrial area and is set to be built over a proposed 6.7-hectare site, with pre-development activities under way.

An upfront capital cost of $US22.8 million ($A33 million) will deliver a facility with an initial capacity of 5,000 tonnes per annum of battery graphite, followed by a further $US49.2 million ($A71 million) to expand production to 20,000tpa.

EcoGraf said global demand for battery graphite was expected to increase by over 700 per cent as Europe continues to invest in renewable energy in the vehicle and industrial sectors.

“The project’s forecast economic contribution to Western Australia is significant on both an economic and strategic front, directly employing more than 250 workers during construction and supporting government plans to position Australia as a global leader in the environmentally, ethically and socially responsible manufacture of battery materials,” EcoGraf said in an ASX announcement.

“The company has received strong interest from prospective customers and is making excellent progress towards product sales and offtakes.”

Last week, EcoGraf announced a formalised agreement with the Future Battery Industries Cooperative Research Centre, based at Curtin University, to become one of its industry partners.

Under the agreement, EcoGraf said it would help provide the technology needed to identify opportunities for greater efficiencies in battery minerals’ extraction and environment.

Shares in EcoGraf were down 5.9 per cent to trade at 7.3 cents per share at 3:10pm AEDT.

Magellan Power is also planning to manufacture battery modules for household utilities in Kwinana.

Meanwhile, BHP Nickel West is building a $55 million nickel sulphide processing plant at its Kwinana refinery.