Evion Group NL (ASX:EVG) is actively engaged in pre-construction discussions in a bid to capitalise on expanding graphite production in Madagascar.
The company's executive team, including managing director Tom Revy and director David Round, recently held meetings with potential funding and joint venture partners in the US.
Revy said: "Our strategy remains focused on becoming a leading vertically integrated graphite and battery anode material producer.
“Specialist industry analysts believe that the graphite market is widely forecast to move into deficit later this year on the back of surging demand from the lithium battery industry.
"The European and US battery industry and EV manufacturers want to diversify their supplies and they want quality and sustainably produced material from within a transparent supply chain.
"Evion is perfectly placed to meet both of these demands."
These discussions aim to advance the development planning of Evion's proposed battery anode (BAM) joint venture plans in Europe, with a specific focus on Germany.
Pre-feasibility study in works
In other efforts to further bolster its position in the market, Evion plans to expand on its recently completed scoping study for the battery anode plant. This expansion will incorporate clean technology and production methods available under the company's collaborative agreement.
The resulting pre-feasibility study (PFS) will offer an advanced assessment of the project's feasibility and is currently being finalised with the assistance of Wave International in Australia and Dorfner Anzaplan in Germany.
As part of this program, Evion is conducting testing on a large batch sample in the US. The test results will play a vital role in completing the BAM PFS. The company maintains a strong partnership with Dorfner Anzaplan and remains committed to collaborating with it on the development of the PFS.
Fivefold increase in global demand
The projected growth in electric vehicles and alternative energy sources is expected to drive the demand for graphite, along with other critical minerals, with the graphite market expected to experience a significant deficit.
Fastmarkets, a leading commodity pricing and demand forecasting group, recently published projections anticipating a fivefold increase in the global demand for graphite concentrate suitable for battery anode material over the next five years.
This growth will necessitate the development of numerous new graphite mines.
Madagascar is emerging as a significant player in the graphite industry outside of China, and Evion acknowledges the growth in graphite mining in this region.
The board also extends its congratulations to Next Source Materials Inc on the commencement of full-scale commercial production at its Molo Plant in southern Madagascar.
The region's infrastructure development has been instrumental in facilitating the growth of mining activities.