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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.
