GR Engineering Services and EcoGraf could form an engineering, procurement and construction contract for the development of a 20,000 tonnes a year battery graphite facility in Western Australia.
The companies have been working to complete pre-development activities for the project, with EcoGraf finalising its arrangements with the Western Australian Government’s land development agency over a proposed 6.7 hectare site in Kwinana.
This facility was estimated to cost $US22.8 million ($33 million) for an initial 5000 tonnes a year capacity.
It would attract a further $US49.2 million to expand production to 20,000 tonnes a year of battery graphite.
“The project’s forecast economic contribution to Western Australia is significant on both an economic and strategic front, directly employing more than 250 workers during construction and supporting government plans to position Australia as a global leader in the environmentally, ethically and socially responsible manufacture of battery minerals,” EcoGraf stated in an ASX announcement.
“Global demand for battery graphite is expected to increase by over 700 per cent as significant investment continues in Europe to transition towards clean renewable energy for vehicle and industrial applications.”
EcoGraf has received “strong interest” from prospective customers and is progressing towards product sales and offtakes.