EcoGraf Cuts Purification Costs to US$478/t, Projects 42% IRR on 25,000tpa Facility

EcoGraf’s Breakthrough in Battery Anode Material Purification

EcoGraf Limited has announced a significant leap forward in its proprietary EcoGraf HFfree® purification technology, designed to produce battery anode material (BAM) for lithium-ion batteries. The company’s latest testwork and pilot-scale operations have yielded a 25% reduction in operating costs, bringing the purification cost down to US$478 per tonne. This breakthrough enhances EcoGraf’s competitive edge against traditional hydrofluoric acid (HF) purification methods, which remain dominant but costly and environmentally challenging.

The initial commercial-scale purification facility, targeting 25,000 tonnes per annum, is forecast to deliver a pre-tax net present value (NPV) of US$282 million and an internal rate of return (IRR) of 42%, with an annual EBITDA of US$42 million. These robust financial metrics underscore the economic viability of EcoGraf’s vertically integrated strategy, linking its Tanzanian Epanko graphite mine with downstream processing hubs.

Sustainability and Quality at the Forefront

EcoGraf’s HFfree® process achieves a remarkable 4N purity level, 99.99% carbon content, while significantly reducing reagent consumption, waste generation, and water treatment costs. Unlike the hydrofluoric acid method, which is toxic and heavily regulated, EcoGraf’s technology uses readily available, eco-friendly reagents, making it suitable for deployment in major battery manufacturing regions such as Europe, North America, and Asia.

This environmentally responsible approach aligns with growing global demand for sustainable battery materials and supports the circular economy through enhanced anode recycling capabilities. The company’s partnerships with industry leaders like BASF and SungEel Hitech Ltd further validate the process’s applicability in battery recycling, a critical component for reducing the carbon footprint of lithium-ion batteries.

Strategic Expansion Amid Geopolitical Shifts

EcoGraf is actively pursuing multi-hub development strategies, with planned purification facilities in the US, Europe, particularly Germany, and Asia-Pacific markets outside China. This geographic diversification is timely, given recent US tariffs of up to 160% on Chinese graphite imports and tightening Chinese export controls. These trade measures are expected to elevate global graphite prices and incentivize the establishment of alternative, secure supply chains.

Government engagement is strong, with positive feedback from the US Department of Defense on EcoGraf’s funding submissions and ongoing discussions with the European Commission. The company is also exploring grant funding opportunities to support facility construction and scale-up.

Patents and Product Development Secure Competitive Moat

EcoGraf has secured patents across key jurisdictions including Australia, the US, South Africa, and East Africa, with additional applications pending in Europe, Canada, and Asia. This intellectual property protection is critical to safeguarding its proprietary purification flowsheet and supporting commercial expansion.

Alongside its primary purified spherical graphite product, EcoGraf is advancing by-product development and zero-waste strategies, enhancing value addition and sustainability credentials. The company’s vertically integrated model, from the Epanko graphite mine through mechanical shaping and purification, positions it well to meet the surging demand for high-quality, low-carbon battery anode materials.

Outlook for EcoGraf and the Battery Materials Market

With lithium-ion battery demand forecast to outstrip natural graphite supply by 2026, EcoGraf’s cost-efficient, scalable purification technology offers a timely solution. The shift towards natural flake graphite in battery anodes, driven by sustainability and supply chain diversification, further supports EcoGraf’s growth trajectory. The company’s ability to deliver high-purity, eco-friendly graphite at competitive costs could make it a pivotal supplier in the evolving battery materials landscape.