Evion Secures A$2M Sales Contract, Eyes License Conversion for Madagascar Mine
Evion Group has initiated shipments from its expandable graphite joint venture in India, securing initial sales of A$2 million, while making significant progress on mining licenses and community support for its Maniry Graphite Project in Madagascar.
- First sales of A$2 million from expandable graphite JV near Pune, India
- Initial 386 tonnes contracted to European buyers at over US$3,000/tonne FOB
- Madagascar government endorses conversion of exploration licenses to mining licenses
- Local community in Madagascar formally supports Maniry Graphite Project development
- Rights Issue underway to raise approximately A$2.7 million for growth and development
India JV Commences Commercial Shipments
Evion Group NL (ASX: EVG) has reached a pivotal milestone with the commencement of shipments from its 50/50 expandable graphite joint venture near Pune, India. During the December 2024 quarter, the JV secured its first sales contract worth approximately A$2 million, covering the initial 386 tonnes of production destined for European markets. The contract, signed following a buyer visit in November 2024, locks in favourable commercial terms with pricing exceeding US$3,000 per tonne FOB.
Operations remain on track to complete the initial 400-tonne order, with shipments scheduled through the first quarter of 2025. The JV has also secured an additional 500 tonnes of graphite concentrate on-site, ensuring production continuity into the second and third quarters. With production costs estimated between US$1,500 and US$1,750 per tonne, the JV anticipates healthy margins and is exploring capacity expansion to 4,000 tonnes per annum, potentially doubling output and generating an additional US$6 million in annual revenue.
Sustainability and Market Positioning
In line with environmental commitments, the JV is installing a state-of-the-art effluent treatment plant designed to recycle 95% of water used onsite. This initiative underscores Evion’s focus on sustainable operations amid growing global demand for expandable graphite, a critical material in electric vehicles, aerospace, energy storage, and electronics sectors.
Market dynamics are favourable, with China’s graphite export reductions creating opportunities for new suppliers. Evion’s JV is well positioned to capture market share in Europe, supported by a contract with Technografit GmbH, a leading German graphite trader.
Madagascar Project Advances with Government and Community Support
Parallel to its Indian operations, Evion has made significant progress at its Maniry Graphite Project in southern Madagascar. The local community has formally expressed strong support for the project, a critical endorsement following extensive consultations. Importantly, Madagascar’s Mines Minister has officially endorsed the conversion of Evion’s remaining exploration licenses to exploitation licenses, enabling the transition to mine development.
This license conversion, managed by the Bureau du Cadastre Minier de Madagascar, is a short-term priority and will consolidate all project tenements under mining approval. Post-quarter discussions with senior government officials and regional leaders, including Princess Zoendreniny, have reaffirmed robust local and governmental backing. Environmental approvals are also nearing completion, with final submissions to the Office National pour l'Environnement (ONE) imminent.
Capital Raising to Support Growth
To fund its expanding operations and development activities, Evion has launched a non-renounceable Rights Issue targeting approximately A$2.7 million. The capital raise is aimed at supporting production scale-up in India and advancing permitting and mine construction in Madagascar. The Rights Issue closing date was extended to 31 January 2025, with results expected shortly.
Despite a cash balance of A$0.73 million at quarter-end and net operating cash outflows of A$586,000, the company is confident that the Rights Issue proceeds will underpin its near-term growth objectives. Discussions continue with OEMs and battery manufacturers to secure future offtake agreements and funding partnerships.
Outlook and Strategic Implications
Evion’s dual-track progress in India and Madagascar positions it well to capitalize on the expanding graphite market, forecasted to grow steadily through 2030. The company’s ability to secure early sales, governmental approvals, and community support reduces key development risks and enhances its profile as a reliable supplier of critical raw materials.
Investors will be watching closely for the Rights Issue outcome, the formal license conversions in Madagascar, and the ramp-up of production volumes in India. These milestones will be crucial in validating Evion’s growth strategy and its potential to deliver sustainable returns in a competitive and strategically important sector.
Bottom Line?
Evion’s progress in India and Madagascar sets the stage for a transformative year, but execution risks and funding outcomes remain key watchpoints.
Questions in the middle?
- Will the Rights Issue successfully raise the targeted A$2.7 million to fund expansion plans?
- How quickly can Evion scale production beyond the initial 386 tonnes in India to meet growing demand?
- What are the timelines and potential hurdles for final environmental approvals and license conversions in Madagascar?
