EcoGraf Targets 390,000 tpa Graphite Production with $282M NPV Project

Strategic Expansion to Meet Global Battery Demand

EcoGraf Limited has announced a significant expansion plan for its Epanko Graphite Project in Tanzania, aiming to ramp up production to 390,000 tonnes per annum (tpa) within the next decade. This staged growth, from an initial 73,000 tpa, is designed to support the company’s vertically integrated battery anode materials business and its proprietary HFfree® purification technology, which is gaining traction in lithium-ion battery manufacturing hubs worldwide.

The expansion study, conducted by independent consultants IMO Metallurgy and Metallurgist Services, outlines a four-stage production increase fully covered under the existing Special Mining Licence. This positions Epanko as Africa’s largest planned graphite producer, a notable milestone given the continent’s emerging role in the global battery materials supply chain.

Robust Financial and Operational Metrics

EcoGraf’s financial projections for the initial 25,000 tpa purification facility in the United States are compelling, with a pre-tax net present value (NPV10) of US$282 million and an internal rate of return (IRR) of 42%. Annual EBITDA is forecast at US$42 million, supported by a process operating cost of US$478 per tonne. A comparable facility planned for Europe, primarily Germany, is expected to deliver similar financial outcomes despite slightly different cost structures.

These metrics underscore the cost efficiency of EcoGraf’s HFfree® purification technology, which recently achieved a breakthrough in reducing purification costs. The company is actively engaging with government bodies in the EU and US, including a positive response to a US Department of Defence funding submission, potentially unlocking US$76.3 million in grant support.

Leveraging a High-Quality Mineral Resource

The Epanko Project benefits from a substantial mineral resource of approximately 291 million tonnes at 7.2% total graphitic carbon (TGC), with a large proportion classified as Measured and Indicated. The graphite concentrate boasts a high purity grade of 96-98% carbon, significantly surpassing typical Chinese feedstock grades, which range from 90-94%. This high-grade feedstock reduces processing complexity and environmental impact, aligning with growing ESG expectations in battery supply chains.

Further exploration potential exists along a 2 km untested strike extension in the Western Zone, where trenching has revealed exceptionally high-grade graphite mineralisation. This offers the prospect of extending the mine life and sustaining production at elevated levels beyond the initial 10-year plan.

Integrated Supply Chain and Sustainability Focus

EcoGraf’s strategy integrates upstream mining at Epanko with midstream mechanical shaping and downstream HFfree® purification facilities located near major battery manufacturing hubs in Europe, North America, and Asia. This multi-hub approach aims to reduce supply chain risks and carbon footprint by localising production closer to end-users.

Additionally, the company is advancing battery anode recycling capabilities using its HFfree® technology, which promises near-zero CO2 emissions and cost advantages. This positions EcoGraf not only as a supplier of raw graphite but as a key player in sustainable battery material circularity.

Community and Environmental Considerations

Located near the Epanko village farming area, the project is engaging with local communities to manage social impacts, including relocation discussions for affected families. Environmental planning includes a valley fill tailings dam with capacity for up to 25 years of operation, with potential for significant expansion. The project’s low strip ratio and high concentrate grade contribute to a reduced environmental footprint compared to many graphite operations.

As the company progresses through financing milestones, including a US$105 million senior debt arrangement facilitated by Germany’s KfW IPEX-Bank, attention will turn to construction and commissioning timelines. The successful ramp-up of Epanko’s production will be critical to meeting the surging demand for natural graphite driven by electric vehicle and energy storage markets globally.