Flinders Resources (CVE:FDR) said its Chinese partner had upgraded graphite from its Woxna mine in Sweden to high purity battery grade, as the junior outlined moves to position itself as a leading supplier to current and future graphite and graphene industries.
Work is now under way to produce a larger quantity of high-purity spherical graphite to commercial specifications, the firm said.
"A number of automanufactures in the European Union are pursuing the development of electric vehicles more aggressively, and the company believes the Woxna production facility is well positioned to be an integral part of the EU Supply chain for battery manufacturing," it added.
The second initiative is a Swedish graphene project, which falls under the EU graphene flagship project - a 10-year, one billion euro project to research graphene commercialisation.
That work is investigating Woxna's Swedish flake graphite and its suitability to produce graphene on an industrial scale.
Flinders told investors today that the project was progressing well and it is anticipated that further updates will arrive in coming months.
Blair Way, the group's chief executive officer, told investors: "The past 12 months has been a challenging time in the resource sector, and the graphite market has not been immune.
"Low graphite demand for the last six months has led to deflated prices. Nevertheless, with a tight control on our costs and a focus on value adding strategies, our initiatives provide cost-effective means to grow our business and provide shareholders with a realistic vision for the future.
"With a production-ready, fully permitted graphite mine and processing facility, Flinders continues to maintain its position as the only graphite producer in the junior space that is positioned to react quickly to the anticipated increases in demand."
In the year to October 31, 2015 the firm posted a virtually flat net loss of C$2.78mln compared to a loss of C$2.73mln in the previous year.
The firm has cash at the end of the year of C$3.2mln compared to C$6.5mlnm in the year before.
Shares added 2.38% today in Toronto to C$0.215.