EcoGraf advances funding process to build graphite plant for lithium-ion battery market

EcoGraf Ltd (ASX: EGR) has confirmed Export Finance will consider the provision of debt finance for the new US$72 million battery graphite purification plant in Kwinana, West Australia.

Export Finance is a corporate entity that operates under the Australian Government Department of Foreign Affairs and Trade, providing financial solutions for Australian companies to enable them to win business, grow internationally and achieve export success.

A detailed financial model has been prepared for the Kwinana funding process that incorporates proposed terms for a US$35 million debt funding package, comprising about 50% of the total construction cost.

State-of-the-art processing plant

The new state-of-the-art processing plant will incorporate the company’s proprietary processing technology to manufacture purified spherical graphite for the lithium-ion battery market.

EcoGraf will assist Export Finance Australia to undertake the necessary commercial and technical due diligence processes for the potential debt financing arrangements.

Pre-development activities for the project are progressing to schedule and the company is finalising arrangements with the Western Australian Government’s land development agency Development WA over its proposed 6.7-hectare site in Kwinana.

First of its kind outside of China

A Letter of Intent has been signed with GR Engineering Services Limited for the construction, operation and maintenance of the Kwinana plant and the parties are preparing final contract documentation.

The processing plant will be the first facility 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.

Advanced discussions with customers continuing

Ecograf’s unique and environmentally responsible graphite purification has attracted strong interest from electric vehicle (EV), lithium-ion battery and battery anode manufacturers who are seeking to improve the sustainability of battery mineral supply chains.

There is an unprecedented level of investment underway to establish new battery manufacturing capacity for EV’s in Europe and EcoGraf is ideally positioned to capture a share of this new demand, with advanced discussions continuing with prospective customers.

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All credits and more information in original source link below:

https://www.proactiveinvestors.com.au/companies/news/914143/ecograf-advances-funding-process-to-build-graphite-plant-for-lithium-ion-battery-market-914143.html

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