How EcoGraf’s US$105M Loan Mandate Could Transform Battery Anode Supply

Epanko Project Financing and Development

EcoGraf Limited (ASX, EGR) has taken a significant step forward in developing its Epanko Graphite Mine in Tanzania by mandating KfW IPEX-Bank to arrange a senior debt facility of up to US$105 million under the German UFK loan program. This financing, backed by the German Government through Euler Hermes credit insurance, aims to support construction and ramp-up of the mine, which is positioned to supply critical raw materials for battery anode production.

The German Government’s Inter-Ministerial Committee has provided a positive preliminary review, confirming Epanko’s eligibility for the UFK loan cover, contingent on completion of due diligence. EcoGraf has advanced environmental, social, and technical assessments in line with international standards, reinforcing its commitment to sustainable mining practices.

European Union Engagement and Infrastructure Support

EcoGraf hosted a delegation from the European Union at the Epanko site following its presentation at the EU Priority Projects Showcase in Brussels. The EU recognizes Epanko as a strategic asset for securing sustainable battery mineral supply chains and is exploring broader support mechanisms. Potential EU assistance includes funding for the planned Mechanical Shaping Facility near Ifakara, transport infrastructure upgrades, and expansion of clean energy supply through regional hydropower stations.

This engagement aligns with recent EU investments in regional infrastructure, such as the Ifakara substation and road improvements, which will enhance logistics and operational efficiency for EcoGraf’s projects.

Downstream Technology and US Department of Defense Support

On the downstream front, EcoGraf received positive feedback from the US Department of Defense on its white paper submission for up to US$76.3 million in funding to establish an EcoGraf HFfree® Purification Facility in the United States. This facility aims to produce high-purity spherical graphite for lithium-ion batteries using EcoGraf’s patented environmentally friendly purification technology.

The US facility will source natural flake graphite from Epanko, processed initially at the Tanzanian Mechanical Shaping Facility. The Department of Defense’s favorable technical evaluation keeps the proposal eligible for award funding over the next 36 months, supported by a letter of endorsement from a tier-1 US battery manufacturer.

Intellectual Property and Product Qualification Progress

EcoGraf continues to strengthen its intellectual property portfolio, with IP Australia granting a second patent covering its HFfree® purification technology. This patent broadens protection across battery anode manufacturing and recycling applications, underpinning the company’s competitive edge in sustainable battery materials.

Product qualification campaigns at the company’s Product Qualification Facility remain on track, with ongoing optimization of operating costs and process efficiencies. EcoGraf is actively engaging with global electric vehicle manufacturers and battery producers to secure long-term supply agreements.

Financial Position and Corporate Initiatives

At the end of the quarter, EcoGraf held AUD 11.2 million in cash and equivalents, supporting continued exploration, development, and corporate activities. The company reported expenditure of AUD 1.6 million on evaluation and exploration, primarily at Epanko.

EcoGraf also advanced its corporate social responsibility programs in Tanzania, including health insurance initiatives for vulnerable community members and environmental awareness campaigns. Investor engagement remained active, with presentations in Europe and participation in key industry conferences.