Pic: Watcom / iStock via Getty Images
China-based YXGC are pioneering the use of graphite foil in green hydrogen batteries and Chilalo’s coarse flake graphite provides ideal feedstock for these products.
Evolution Energy Minerals (ASX:EV1) has signed a binding offtake agreement with Yichang Xincheng Graphite Co for the sale of 30,000tpa of coarse flake graphite from its Chilalo Graphite Project in Tanzania for a minimum of three years.
The offtake agreement covers more than 50% of Chilalo’s production for the first three years and represents more than 70% of forecast revenue over the same period.
Evolution and YXGC have worked closely together for a long time, with Chilalo’s graphite being the subject of extensive product qualification with YXGC since 2015.
Product qualification work undertaken during that time demonstrated that Chilalo produces a premium quality coarse flake concentrate, which is suitable for the production of graphite foils, fire retardants and other high-value products such as bi-polar plates used in green hydrogen batteries.
YXGC are pioneering the use of graphite foil in green hydrogen batteries and Chilalo’s coarse flake graphite (comprising +100, +80, +50 and +32 mesh) provides ideal feedstock for these products.
EV1 managing director Phil Hoskins said the company is delighted to sign this cornerstone offtake agreement, which significantly de-risks Chilalo project financing.
“The agreement is the culmination of a significant amount of work that we have undertaken with YXGC over many years and is testament to the strong relationship and mutual respect we enjoy with YXGC,” he said.
“YXGC is internationally renowned as a leading manufacturer of expandable graphite and high-value graphite products and the company believes that its partnership with YXGC is critical to securing the finance for development of Chilalo.”
EV1 expects to complete several project finance related milestones over the coming months, including:
This article was developed in collaboration with Evolution Energy Minerals, 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.
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