Evion Group NL (ASX:EVG, OTC:EVIGF) has started commissioning at its newly constructed expandable graphite facility in India. The operation, Panthera Graphite Technologies (PGT), is a 50/50 joint venture (JV) between Evion and Metachem Manufacturing Company Pvt Ltd.
The JV has invested more than US$4 million at its new state-of-the-art processing facility in Pune, India, where it plans to become a leading supplier of expandable graphite material to the existing and growing expandable graphite market.
Once production begins, which is scheduled next month, it is expected to fill a projected global shortage of expandable graphite. This shortage follows China's October 2023 ban on the export of graphite materials in order to preserve local reserves for domestic use.
China’s graphite export ban is likely to see a substantial increase in demand for graphite material from existing and new markets that can supply world-class material at competitive prices.
Toward first ASX-listed expandable graphite company
The commissioning process places Evion a step closer to becoming the first ASX-listed expandable graphite company, with production of expandable graphite expected to begin next month.
Evion managing director Tom Revy said: "The completion of our plant construction is the culmination of much planning and development over the last two years between us and the leadership team at Metachem, and we're delighted with the outcome.
“We now enter the important commissioning stage knowing this will be undertaken by an experienced management team, utilising a new and state-of-the-art production facility.
“The commencement of production and sales will commence shortly thereafter, and we look forward to delivering our world-class product to our European buyers"
Experienced commissioning team
A highly experienced team of graphite processing specialists from Metachem's operational facility and staff from the JV's operational team have been assembled, focused on safety and reliability of commissioning and start-up.
All members have a track record in expandable graphite processing, with competence in maintenance, technical aspects and operational analysis.
Commissioning of service areas has commenced with the roll out of the remaining staged commissioning and start-up schedule due to be completed next month, to coincide with the completion of the revised effluent treatment plant.
Expanded production planned
Evion previously signed an offtake and sales agreement with Austria-based Grafitbergbau Kaisersberg GmbH, which has extensive experience in the development of graphite downstream products.
Under this agreement, the JV will supply up to 2,500 tonnes per annum of expandable graphite once operations commence in India. This represents gross sales revenue of around US$9 million to the JV, based on current pricing and forecasting in the first full year of operation.
It is proposed that from year 3 of operations, production capability will be lifted and the plant expanded to produce 4,500 tonnes per annum. The current facility has been designed and constructed to accommodate this expansion and should result in cost, time and safety benefits to Evion as part of Phase 2 construction.