Evion Group NL (ASX:EVG) has completed a scoping study confirming the “strong opportunity” in Europe to produce material for use in lithium-ion batteries by value-adding graphite concentrate from the Maniry Project in Madagascar.
The study found that a Battery Anode Material (BAM) plant in Europe would generate strong returns, processing graphite concentrate from Maniry into uncoated spheronised purified graphite (SPG) for use in lithium-ion batteries.
Capitalising on electrification surge
EVG hopes to capitalise on the surge in demand from the electric vehicle (EV) and lithium-ion battery markets, and is now discussing finance, grants, offtakes and location options with strategic stakeholders.
This study, which followed a “highly successful” definitive feasibility study (DFS) which proved financial returns and technical robustness, looked at five different process routes and two throughput rates.
The DFS demonstrated that Maniry graphite could meet the requirements for several value-added products, including decarbonisation products such as lithium-ion batteries.
Both the DFS and the scoping study are central to the company’s strategy to become a vertically integrated supplier of graphite products.
Demand for non-Chinese supplies
Evion managing director Tom Revy said: “Underpinned by our Maniry Graphite Project, this battery anode material plant has the potential to uniquely position Evion to capitalise on the strong growth in demand for non-Chinese supplies of uncoated-SPG from the European lithium-ion battery market.
“By developing a vertically-integrated graphite business, Evion is positioning itself to take full advantage of the highly favourable supply-demand fundamentals emerging for our products as a result of the energy transition.
“Evion continues to grow its development pipeline, which includes expandable graphite, uncoated spheronised purified graphite and the Maniry Graphite Project, in a controlled and strategic manner to provide shareholders more direct exposure to the fast-growing global graphite supply chain.
“The board believes that the quality portfolio of integrated projects it now holds not only positions the company to deliver against our vision but also represents significant potential value for our shareholders moving forward.”
Next steps
The company will chart a course for its BAM ambitions in Germany by taking the following steps:
- conduct comprehensive test work on Maniry concentrate in order to better define the process flow sheet, optimise reagent schemes and understand the characterisation of waste stream;
- progress site selection studies to finalise the location of the processing facility;
- investigate further infrastructure options based on site requirements;
- produce specification/datasheet for product produced from the purification flowsheet; and
- start marketing activities.