Evion signs pivotal graphite offtake agreement with Urbix

Evion has signed a non-binding offtake agreement with US-based graphite technology group Urbix for 15,000 metric tonnes per annum (mtpa) of product from its Maniry plant in Madagascar.

The company’s feedstock will be used for Urbix’s early-stage production of advanced Coated Spheroidized Purified Graphite (CSPG) for the EV battery industry.

Maniry’s forecast initial production is 39,000mtpa, with the project scheduled to commence production in Q4 2024 before ramping up to 55,000mtpa.

It’s a solid stepping stone for the company, particularly when you consider conservative price assumptions of an average of $7,800 per metric tonne for CSPG suggest the global lithium-ion battery grade graphite market will grow from approximately $5 billion to over $27 billion by 2030.

A key supplier to the lithium battery industry

Evion (ASX:EVG) and Urbix are continuing joint development discussions with the potential to significantly increase supply volumes in the years to come as Urbix ramps up production – aiming to become one of the world’s largest producers of advanced green anode material for the rapidly expanding EV battery market.

“We are delighted to enter this agreement that positions our companies well for rapid growth in the near term,” Evion MD Tom Revy says.

“Evion brings a superior supply of graphite to Urbix that has developed state of the art technology.

“This milestone agreement perfectly positions our companies to become major contributors to the forecasted massive growth in the EV and clean, alternative energy markets.”

The companies will continue discussions to establish commercial terms including pricing, feedstock specifications, logistical requirements and other relevant factors in order to convert this agreement into a binding agreement in the near-term.

Ending Chinese supply chain dominance

Urbix says its technology will end the Chinese EV battery grade graphite dominance, offering manufactures the first and only cost effective, fully sustainable, and better performing advanced battery grade graphite in the world independent of any Chinese affiliation.

“A secure, high-quality feedstock supply with a responsible partner is a critical paving stone on Urbix’s road to commercialisation,” Urbix CFO Eduardo Gonzalez said.

“Urbix is proud to count Evion as a partner as we continue to finalise technical and financial plans necessary to deliver American made, clean CSPG to the rapidly expanding global EV battery market.”

Compared to the Chinese method, Urbix’s technology uses less than 5% of the energy required and does not use dangerous chemicals, costs 40% less and achieves over 2x the yield (70%+)

Urbix’s CSPG products also resolve several vulnerabilities of the current reliance on Chinese materials related to supply chain security and ESG compliance with products made in America.

This article was developed in collaboration with Evion Group Limited, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.