Home / Sector / Materials Shares / Ecograf (ASX:EGR) share price launches 29% on battery material deal

Ecograf (ASX:EGR) share price launches 29% on battery material deal

Here's the news boosting the company's stock today.

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Brooke Cooper
Brooke has been a Motley Fool contributor since early 2021. She holds a Bachelor of Communication with specialisations in journalism and international studies from Charles Sturt University. Brooke aims to inform and excite Aussies keen to grow their wealth by investing in ASX companies. When not writing or researching, you'll likely find Brooke gallivanting around South East Queensland.
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Thursday is proving to be a great day for the Ecograf Ltd (ASX: EGR) share price after the company announced that it's writing up an offtake agreement.

Ecograf has entered a memorandum of understanding with South Korean multinational industrial company POSCO International. The agreement will see Ecograf selling its HFfree battery anode material products to POSCO International.

The companies intend to sign a formal offtake agreement following their understanding.

At the time of writing, the Ecograf share price is 82.5 cents, 28.91% higher than its previous close.

Let's take a look at today's news from the battery anode material business.

asx share price increase represented by golden dollar sign rocketing out from white domes of lithium

Image source: Getty Images

Ecograf share price surges on Thursday

Ecograf's stock is surging higher on the back of a planned offtake agreement for the products of its upcoming Australian Battery Anode Material facility and its planned facility in Europe.

By supplying POSCO International with its HFfree battery anode material products, Ecograf will be supporting POSCO's anode production expansion plans.

According to Ecograf, POSCO International is a key subsidiary of Korean steel maker POSCO Group.

POSCO International has an international network made up of more than 80 subsidiaries. It uses its position to establish value chains in various sectors including steel, energy, machinery parts, and infrastructure. 

On top of the offtake agreement, Ecograf and POSCO International will look for other opportunities to work together on product development, battery anode recycling, and EcoGraf's battery anode material business' development.

Ecograf is working to build its first battery anode materials facility in Perth. It will focus on exporting battery anode material products to Asian, European, and North American anode, lithium-ion battery, and electric vehicle markets.

Additionally, Ecograf announced it has signed a land reservation agreement for an industrial site in Sweden in August. There, it's planning to build another battery anode facility.

Right now, the Ecograf share price is 385% higher than it was at the start of 2021.

Motley Fool contributor Brooke Cooper 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.

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