Evion Group Ltd (ASX:EVG) has agreed to supply graphite concentrate from its Maniry Plant in Madagascar to Urbix Inc’s advanced coated spheroidised purified graphite (CSPG) plant producing battery anode materials for the electric vehicle industry.
Both companies have signed a non-binding agreement for the supply of 15,000 tonnes annually of the concentrated product, which covers 40% of Maniry’s forecast production of 39,000 tonnes per annum when it begins production in the fourth quarter of 2024.
The deal is expected to result in Evion becoming a key supplier to the lithium battery industry.
Milestone agreement
“Our relationship with Urbix commenced a number of years ago and we are delighted to enter this agreement that positions our companies well for rapid growth in the near term,” Evion’s managing director Tom Revy said.
“Evion brings a superior supply of graphite to Urbix that has developed state-of-the-art technology. This milestone agreement perfectly positions our companies to become major contributors to the forecasted massive growth in the EV and clean, alternative energy markets.”
Urbix’s chief financial officer Eduardo Gonzalez added: “A secure, high-quality feedstock supply with a responsible partner is a critical paving stone on Urbix’s road to commercialisation.
“Urbix is proud to count Evion as a partner as we continue to finalise technical and financial plans necessary to deliver American-made clean CSPG to the rapidly expanding global EV battery market.”
Aims to end China’s dominance
Urbix is a US-based producer of CSPG designed for EV anode production.
Since 2017, the company has invested more than US$40 million in research and development to formulate, test and perfect a unique CSPG production technology to end China’s dominance in EV battery-grade graphite.
According to Urbix, its proprietary technology uses less than 5% of the energy required by the Chinese process, does not use dangerous chemicals, costs 40% less and achieves more than two times the yield at about 70%.
The company is poised to begin advanced due diligence with the US Department of Energy’s Loan Programs Office to access up to US$200 million from the Advanced Technology Vehicle Manufacturing Program (ATVM), funds which are key to starting the commercial-scale production project in 2024.
The due diligence is expected to be concluded in the first half of 2023.
“Urbix is an ideal candidate for the ATVM program, which is designed to support vehicle and component manufacturers speeding the transition to a clean energy future. By leveraging the program to reduce the cost of capital, Urbix intends to accelerate commercialisation plans for a production facility intended to be the first of many,“ Gonzalez said.
Next steps
The team at Evion will now work with Urbix on a number of strategic initiatives to underpin the partnership as well as to conclude a binding agreement for the supply in the short term.
For Evion, it will also work towards:
- Completing binding agreements for the majority of the planned production at Maniry.
- Further developing project funding discussions with international funding partners.
- Completing its battery anode material scoping study for a proposed development in Europe that will include input from development partners.
- Concluding its final Environmental and Social Impact Assessment on its remaining projects in Madagascar.