With government-friendly policies and a forecast of robust demand for lithium-ion batteries, Evolution Energy Minerals Ltd (ASX:EV1) has chosen the US to set up a downstream facility to process fine flake graphite from its cornerstone Chilalo Graphite Project in Tanzania.
To that end, a subsidiary company – Evolution Energy Solutions LLC – has been set up and the search for a site to build an environmentally-friendly facility as well as the building of a dedicated team to deliver on the US strategy are underway.
As well, test work on Chilalo’s fine flake graphite has confirmed that it is suitable for the production of coated spherical graphite (CSPG) for lithium-ion batteries.
Demand for lithium batteries in the US is expected to grow more than six times, translating into US$55 billion per year by the end of 2030.
Figure shows where the US subsidiary sits within the Evolution group.
“Compelling opportunity”
“We have already confirmed the superior performance of Chilalo fine flake graphite for the production of CSPG and committing to a downstream processing strategy is the obvious next step,” EV1 managing director Phil Hoskins said.
“The US has numerous states with low-cost renewable power grids ideally suited to environmentally-friendly thermal purification of graphite as well as a favourable political environment for new critical mineral processing.
“Establishing ex-China mine-to-anode supply, as with other critical minerals, is one of the most compelling market opportunities in the critical minerals space right now, evidenced by the extensive range of government policy initiatives.
“Whilst Chilalo’s fine flake graphite is keenly sought after by off-takers, we are firmly focused on establishing a vertically-integrated business, in which our Chilalo Project supplies fine flake graphite to an Evolution processing facility in the US.
“Not only does this provide a compelling opportunity for value addition, but it provides other potential sources of funding for Chilalo itself.”
Suitability test
Test work on Chilalo’s fine flake graphite has confirmed that the material can produce 99.9995% carbon (C) via thermal purification, exceeding the qualification criteria for batteries.
It can also generate a yield of about 64% spherical graphite from spheroidisation milling, which when compared to the industry average of 40%, will have a substantial impact on revenue and overall economics of a downstream operation.
Other findings from the test work carried out with a US technology partner include:
- Highly suited to the production of CSPG, which has delivered exceptional electrochemical performance and is expected to be highly sought after by battery manufacturers; and
- Outperforms leading synthetic graphite in electrical conductivity applications (the product tested was the non-spherical by-product of the spheroidisation milling process to produce CSPG).
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