EcoGraf (ASX:EGR) share price powers ahead 9% following lithium update

What's driving the company's shares higher today?

| More on:
two workers in hard hats and high visibility gear give celebratory fist pumps while checking paperwork at a processing site with equipment in the background.

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

Key Points

  • EcoGraf share price acelerates 9.23% to 71 cents
  • It comes amid a business update on the company's new battery anode material facility
  • Strong South Korean demand could lead to a bumper revenue stream

The EcoGraf Ltd (ASX: EGR) share price is pushing higher on Wednesday. This comes after the company announced a business update on its lithium-ion battery anode material (BAM) facility in Western Australia.

During early afternoon trade, the graphite producer's shares are up 9.23% to 71 cents apiece.

What did EcoGraf update the ASX with?

Investors are buying up EcoGraf shares following the company snapshot of its progress at the new BAM facility.

According to its release, EcoGraf advised that it has completed the vendor equipment test work. This will see the use of specific equipment for stage 1 development activities at the site. 

In addition, regulatory permits and approvals studies covering noise, air, and bushfire management have been finalised.

A procurement process for key overseas long lead equipment has commenced. This includes battery supply chain-related equipment such as mechanical shaping equipment.

Lastly, the company expanded its project delivery team to manage key supply contracts, site services, utilities, and operational readiness aspects.

Engineering is continuing to optimise and incorporate new product lines for EcoGraf's expanded 20,000 tonnes per annum facility.

Once online, the company will employ its HFfree processing technology to create battery anode material products. This will be used to supply purified spherical graphite for the lithium-ion battery market.

EcoGraf noted that it is well-positioned to cater for battery minerals demand in the South Korean market. Outside of China, South Korea is the largest electric vehicle market.

Three major battery manufacturers, LG Chem, Samsung SDIm and SK Innovation, plan to invest US$35.3 billion over the next decade.

EcoGraf share price summary

Over the last 12 months, the EcoGraf share price has soared 124% higher, with year-to-date up 4.4% so far. The company's shares reached a 52-week high of $1.10 in February before moving in a sideways channel.

Based on today's price, EcoGraf presides a market capitalisation of roughly $317 million, with approximately 450 million shares on its registry.

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 Materials Shares

A woman jumps for joy with a rocket drawn on the wall behind her.
Materials Shares

Why is this ASX 300 battery tech stock jumping 11% today?

Another agreement and big plans are getting investors excited on Monday.

Read more »

two men in hard hats and high visibility jackets look together at a laptop screen that one of the men in holding at a mine site.
Resources Shares

'I hate what I have done': Mineral Resources share price down as Ellison laments actions

Managing Director Chris Ellison says he deeply regrets the impact of his 'error of judgement'.

Read more »

A bearded man holds both arms up diagonally and points with his index fingers to the sky with a thrilled look on his face over these rising Tassal share price
Materials Shares

Why is this ASX lithium stock jumping to a 52-week high today?

This lithium stock is smashing the market this year despite all the doom and gloom in the industry.

Read more »

Projection of two hands being shaken on a deal.
Materials Shares

Sayona Mining shares sink 13% on Piedmont Lithium merger news and capital raise

This merger will create the largest lithium producer in North America.

Read more »

Miner looking at a tablet.
Materials Shares

Down 28% in 2024, why this ASX 200 lithium stock could now be 'deeply undervalued'

The ASX 200 lithium stock has drawn plenty of investor attention over the past month.

Read more »

Image from either construction, mining or the oil industry of a friendly worker.
Materials Shares

Buy BHP shares for a 20%+ return

Goldman Sachs expects big total returns from this mining giant.

Read more »

Miner looking at a tablet.
Materials Shares

Here's why ASX uranium shares are ripping higher today

Uranium shares are smashing the markets today.

Read more »

A female broker in a red jacket whispers in the ear of a man who has a surprised look on his face as she explains which two ASX 200 shares should do well in today's volatile climate
Materials Shares

2 ASX 200 lithium stocks to buy for big returns

Which stocks are analysts tipping as buys right now? Let's find out.

Read more »