EcoGraf (ASX:EGR) share price powers 10% ahead on industrial site news

This ASX company's shares have been in strong form…

| More on:
A green fully charged battery symbol surrounded by green charge lights representing the surging Vulcan share price today

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The EcoGraf Ltd (ASX: EGR) share price is continuing its ascent since the beginning of July, up 30%. This comes after the graphite producer announced it will be evaluating an industrial site in Sweden.

During mid-afternoon trade, EcoGraf shares are racing to 78.5 cents, up 10.56%. In comparison, the All Ordinaries Index (ASX: XAO) is sitting at 7,760 points, up 1.3%

EcoGraf signs land reservation agreement

Investors are buying up EcoGraf shares as the company plans to further expand its presence in the lithium-ion battery market.

In a statement to the ASX, EcoGraf advised it signed a land reservation agreement with the Skelleftea municipality in Sweden. This follows the company's previous efforts in exploring a number of sites across Europe, including Germany.

EcoGraf is assessing a 65,000 square metre industrial site in Skelleftea as a potential location for its battery anode materials facility. Located in the Vasterbotten region, the area benefits from ample clean and renewable energy. It is considered to have the lowest industrial power costs in all of Europe.

The company will commence a detailed evaluation of the potential development after completing a preliminary assessment to select the site. Pleasingly, the area is of sufficient size to accommodate future expansion for increasing production capacity along with battery anode recycling.

The company says its eco-friendly production process aligns with many world governments adopting new environmental, social and governance frameworks to help transition to cleaner energy.

EcoGraf's facilities use the company's patented purification technology which eliminates the use of toxic hydrofluoric acid (HF).

It is expected work will begin on the selected European site once EcoGraf's new Australian facility is completed.

About the EcoGraf share price

The EcoGraf share price has rocketed by more than 1,118% in the past year and is up an astonishing 360% year-to-date. The surge reflects growing investor confidence within the lithium-ion industry and the company itself.

Based on the current valuations, EcoGraf commands a market capitalisation close to $353.1 million.

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Market News

Doctor doing a telemedicine using laptop at a medical clinic
Healthcare Shares

3 small-cap ASX healthcare shares 'with strong prospects'

Fund manager IML discusses why these 3 ASX healthcare shares are likely to rise in value.

Read more »

Magnifying glass on a rising interest rate graph.
Share Market News

Will the RBA finally cut interest rates next week?

Let's see what economists are saying about the central bank's meeting.

Read more »

A couple sits on a sofa, each clutching their heads in horror and disbelief, while looking at a laptop screen.
Share Gainers

Here are the top 10 ASX 200 shares today

Investors endured a rough Friday to close the trading week today.

Read more »

a man wearing old fashioned aviator cap and goggles emerges from the top of a cannon pointed towards the sky. He is holding a phone and taking a selfie.
Broker Notes

7 ASX All Ords shares elevated to 'strong buy' status in October

The brokers turned bullish on these ASX companies last month.

Read more »

A businessman compares the growth trajectory of property versus shares.
Share Market News

How ASX shares vs. property performed in October

The national home value rose for the 21st consecutive month while the ASX 200 dipped.

Read more »

Person with thumbs down and a red sad face poster covering the face.
Share Fallers

The worst 3 ASX 200 stocks to buy and hold in October unmasked

You would have done well to avoid these three ASX 200 stocks in October.

Read more »

A female Woolworths customer leans on her shopping trolley as she rests her chin in her hand thinking about what to buy for dinner while also wondering why the Woolworths share price isn't doing as well as Coles recently
52-Week Lows

Why is the Woolworths share price at its lowest point since 2020?

We haven't seen Woolies shares this low since COVID.

Read more »

A man sits in despair at his computer with his hands either side of his head, staring into the screen with a pained and anguished look on his face, in a home office setting.
Share Fallers

Why AFT, Amcor, Corporate Travel, and Macquarie shares are falling today

These shares are ending the week in the red. But why?

Read more »