EcoGraf (ASX: EGR) has received confirmation that it could expand production at its Epanko graphite project in Tanzania to support development of commercial-scale EcoGraf HFfree purification facilities across lithium-ion battery manufacturing hubs in Europe, North America, and Asia.
A new study found the project has the capacity to produce as much as 390,000 tonnes per annum of natural flake graphite through staged growth at the Epanko mine, driven by rising global battery anode demand from new global supply chains.
The expansion evaluation came on the back of EcoGraf successfully identifying new cost efficiency opportunities in future development of the HFfree battery anode material.
Increased Processing Capacity
Based on the existing resource at Epanko, the study evaluated three staged natural flake graphite production upgrades to follow the initial production of 73,000 tpa, concluding that EcoGraf could achieve output of 390,000tpa within 10 years.
The study also found the company could utilise its Tanzanian midstream facility to process fine graphite concentrate in a staged expansion, with the output to be purified at global HFfree sites.
This strategy would align with EcoGraf’s multi-hub growth strategy.
The company has also looked into the comparable financial metrics of establishing a purification facility in Germany and the US.
It believes the overall economics would be similar, with the German option offering lower capital costs but slightly higher operating costs compared to the US facility.
Mineral Resource Upside
EcoGraf says the significant upside for resource expansion in the southern extension of the Western Zone at Epanko could support the proposed production increases.
Geophysical surveys and geological mapping have identified two kilometres of untested strike extension as a potential continuation of the mineralisation defined in the Western Zone.
Trenching work in 2023 revealed the undeveloped area contains some of the highest graphite grades seen from the project.
EcoGraf has already attracted global financial support for Stage 1 construction at Epanko, with KfW IPEX-Bank to arrange approximately $160 million in senior debt under Germany’s untied loan guarantee program.
