Volt’s Alabama Refinery Scoping Study Shows US$21M Capex and Strong Returns

Strong Foundations for Alabama Refinery

Volt Resources Limited (ASX, VRC) has unveiled a compelling scoping study for its planned Alabama Graphite Refinery, highlighting a capital cost of just US$21 million to produce 12,000 tonnes per annum of high and ultra-high purity graphite. This study underscores the company’s proprietary purification process as a key competitive advantage, boasting a capital cost intensity of US$1,709 per annual tonne; significantly lower than thermal and HF purification alternatives.

Strategically located in Tuscaloosa County’s Airport Industrial Park, the refinery site benefits from robust infrastructure including water, waste disposal, energy, telecommunications, and transport links. Volt is now advancing pilot plant trials and testwork to optimize the process further, with a Final Investment Decision (FID) anticipated following successful validation, offtake agreements, and financing.

Resilience and Growth in Ukraine

Volt’s 70%-owned Ukrainian subsidiary, Zavalievsky Graphite, has commenced a new production campaign targeting approximately 1,000 tonnes of graphite concentrate with purity between 88% and 95%. Operating amid challenging geopolitical conditions, the subsidiary’s continued output reflects strong local management and workforce commitment. The mine’s strategic importance is reinforced by its inclusion in the European Raw Materials Alliance pipeline and recent US-Ukraine critical minerals agreements, enhancing market access to European and North American battery manufacturers.

Progressing Bunyu Amid Market Challenges

In Tanzania, Volt’s Bunyu Graphite Project is advancing through active engagement with a major Indian mining partner focused on reducing capital and operating costs to adapt to the subdued graphite price environment. The company is also negotiating a Framework and Shareholders Agreement with the Tanzanian Ministry of Minerals, aiming to finalize terms by December 2025. These developments are crucial for unlocking the project’s potential and securing financing for mining operations.

Corporate and Financial Discipline

Volt has realigned its executive leadership to sharpen focus on downstream high-purity graphite and advanced materials, with CEO Prashant Chintawar stepping down from the board to concentrate on operational execution. The company ended the quarter with a modest cash balance of $217,000 but bolstered its position by securing $500,000 from RiverFort Global Capital under a $1 million funding agreement. Operating costs remain tightly managed, reflecting prudent fiscal discipline amid ongoing exploration and development activities.

Navigating Market and Regulatory Dynamics

Despite a recent dip in flake graphite prices, Volt’s diversified geographic footprint and strategic positioning are timely. The US government’s imposition of a 93.5% anti-dumping duty on Chinese active anode materials, combined with existing tariffs, effectively raises barriers to Chinese graphite imports by 160%. This regulatory environment amplifies demand for non-Chinese graphite sources, placing Volt’s US, Tanzanian, and Ukrainian projects in a favorable light for supply chain diversification.