Evion Advances Maniry Mining Permits Amid Strong EU and US Support

Madagascar Mining Permits Nearing Final Approval

Evion Group (ASX:EVG) has cleared a critical regulatory hurdle with Madagascar’s Ministry of Mines completing its assessment of the company’s application to convert its final exploration permits into Mining (Exploitation) Permits for the Maniry Graphite Project. The Ministry confirmed full compliance with the country’s new Mining Code and directed the Mining Cadastre authority to expedite the administrative steps for permit conversion, recognising Maniry as a priority development project.

This milestone moves Evion closer to advancing offtake negotiations, project financing, and the planned start of construction. The company’s in-country team continues to work closely with government officials, while environmental permit applications are also progressing towards final approval. The Maniry Project, located in southern Madagascar, holds a high-grade graphite resource with a 2022 Definitive Feasibility Study estimating up to 60 kilotonnes per annum of graphite concentrate production over 21 years and a pre-tax NPV of US$263 million.

These developments build on earlier announcements where the Mines Ministry commenced approvals for priority projects, with Maniry firmly on the list. This progress is especially significant given Madagascar’s status as the world’s largest natural graphite producer outside China, positioning Evion to tap into accelerating demand from battery anode manufacturers and electrification markets globally. This update follows the company’s prior Madagascar permit fast-track update in February 2026.

European Union Boosts Madagascar Infrastructure and Project Funding

Evion’s optimism is buoyed by the European Union’s recent announcement of over US$100 million in financing agreements with Madagascar’s government. These funds target infrastructure, healthcare, and community development initiatives designed to bolster the local economy and integrate Malagasy businesses into global value chains.

Evion has been actively engaged with EU officials since mid-2025, submitting grant funding applications exceeding €1.2 million (approximately A$2 million) focused on workforce recruitment and training at Maniry. The company has received positive feedback on these applications and confirmation that a €3 million EU grant remains on track pending mining permit issuance. Evion’s designation as the only African graphite project recognised under the EU’s Critical Raw Materials Act underscores its strategic importance.

Ongoing discussions with the European Investment Bank and KfW Development Bank aim to secure further funding to support Maniry’s development. As the EU’s sole endorsed graphite supplier candidate, Evion is confident in progressing these financing plans with designated advisors. This EU backing complements the company’s expansion efforts and underlines the continent’s interest in diversifying critical mineral supply chains.

US Extends Trade Benefits and Launches Strategic Development Program

On the trade front, the United States House of Representatives passed legislation extending the African Growth and Opportunity Act (AGOA) through 2028, preserving duty-free access for Madagascar exports. The bill has moved to the Senate for consideration, reinforcing US commitment to African economic development via enhanced market access.

Following this, the African Union Commission and the US established a Strategic Infrastructure and Investment Working Group to promote trade and investment, focusing on infrastructure, critical minerals supply chains, and regulatory harmonisation. This initiative reflects the strategic priority placed on critical minerals by both the US and African nations, aligning with Evion’s positioning in Madagascar and its broader footprint.

These US developments dovetail with Evion’s ongoing efforts to expand its footprint in North America, including a recent Nevada fluorspar project option and capital raise to complement its graphite assets.

Panthera Graphite Technologies JV Expands Production Capacity

Evion’s 50:50 joint venture in India, Panthera Graphite Technologies (PGT), is advancing its Stage 2 expansion to nearly double production capacity to 4,000–4,500 metric tonnes per annum of expandable graphite. Despite intermittent production pauses during equipment installation, PGT maintained exports of approximately 120 tonnes during the quarter and holds a strong sales pipeline, primarily targeting Europe and the US markets.

The expansion, with a capital expenditure estimated between US$500,000 and US$750,000, is expected to generate an additional US$6 million in annual revenue. The company is also negotiating potential supply agreements that could support further growth, including plans for Stage 3 expansion and entry into Asian markets such as Japan and Taiwan. This operational progress aligns with the company’s strategy to consolidate its position as a leading ex-China expandable graphite producer, a theme highlighted in the recent graphite plant upgrade update.

Financial Position and Near-Term Milestones

Evion ended the quarter with a cash balance of A$1.66 million, supporting ongoing project milestones. Operating cash outflows of A$770,000 related mainly to stakeholder engagement across Europe, India, and Africa, as well as staff and administration costs. No mine production or development expenditure was recorded this quarter, reflecting the project’s current phase.

Key upcoming objectives include securing formal environmental plan endorsement from Madagascar’s environmental authority, completing permit conversions, executing formal government agreements on development timelines, advancing EU grant funding, and ramping up production at PGT. Additionally, Evion aims to finalise offtake agreements with US and European industry and government stakeholders, underpinning its vertically integrated graphite strategy.

With global graphite demand forecast to rise steadily driven by electric vehicle and battery markets, Evion’s progress in securing regulatory approvals, international funding, and operational expansion positions it to capitalise on supply chain diversification trends away from China.