Evion Group NL (ASX:EVG, FRA:BAPA) executives have held a series of meetings in India with joint venture partners and strategic advisers as the company progresses upgrades at its expandable graphite facility to meet rising demand from Europe and the United States.The global expandable graphite market is projected to reach US$312.4 million by 2028 from an estimated US$205.9 million in 2022, at a CAGR of 7.2% during 2023 and 2028.
The discussions centred on development and expansion at the Panthera Graphite Technologies (PGT) plant near Pune, which is operated through a 50:50 joint venture with Metachem Manufacturing Co.
The meetings took place over the past two weeks and formed part of ongoing efforts to position the facility to supply growing global markets seeking expandable graphite produced outside China.
Stage 2 upgrade aimed at lifting production capacity
A key focus is the Stage 2 upgrade at the PGT plant, which Evion is prioritising in order to meet strong demand from buyers in Europe and the United States.
Once completed, the Stage 2 development is expected to lift production and sales capacity to about 4,000–4,500 tonnes per annum of expandable graphite, supporting the company’s ability to supply customers in the short to medium term.
Installation work for the upgrade has required intermittent pauses in production during March, although sales and exports have continued throughout the quarter to date.
Managing director David Round said the expansion work at the Pune site had progressed significantly in recent months.
“It was pleasing to see the amount of work and preparation done by the team at our Expandable Graphite site near Pune, India,” he said.
"Extensions and development to our site have continued over the last few months and we expect this will continue for several months before conclusion. Production modules and other capital is available now and we are working to install this with minimal interruption to production. Some pauses in production have occurred over the last quarter and this is to be expected as we finalise this important Stage 2 development.
"The Board of PGT see this as a strategically important process as we seek to expand our production capacity to consolidate our position as one of the largest ex-China producers of expandable graphite.”
Positioning to meet global supply demand
Evion said the plant expansion is intended to help the company strengthen its position as a major producer of expandable graphite outside China.
The company noted that current geopolitical tensions in the Middle East could contribute to a global shortage of expandable graphite in 2026 and 2027, increasing the importance of alternative supply sources.
Graphite has also been recognised by the European Union as a critical mineral required for supply security across sectors including defence, aerospace, electric vehicles, energy storage and electronics.
Further growth opportunities under discussion
Beyond the Stage 2 upgrade, Evion is continuing discussions with external parties regarding potential Stage 3 expansion or broader global growth opportunities.
The company is also negotiating supply agreements that could include significant investment to further expand operations in India and potentially overseas.
In addition to existing markets in Europe and the US, Evion said it is currently negotiating with potential buyers in other parts of Asia, including Japan and Taiwan, reflecting the widening demand for expandable graphite products.