Evolution Energy: Why sell flake graphite when you can refine it and sell it for 30 times more

Why sell graphite flake concentrate for US$800 a tonne when you can refine it and sell it for 30-60 times more?

Evolution Energy (ASX: EV1) said a focus on “quality over quantity’ will be critical in maximising the value of its Chilalo Graphite Project in Tanzania. 

Chilalo graphite has already passed several stages of testwork to produce a high quality spherical graphite product that’s used in electric vehicles and energy storage applications.

The production of spherical graphite also produces a non-spherical by-product that does not quality for use battery anodes. Still, further testwork of the by-product has revealed another lucrative use case associated with the battery industry.

An electrically conductive by-product

A demonstration and testwork project using the by-product produced an "ultra-high purity electrically conductive dispersion known as an alkaline battery can coating."

"Can coating is sprayed onto the interior of alkaline battery can casings to enhance electrical conductivity, thereby increasing the discharge capacity (run time) of the battery," said Evolution Energy.

"Coatings containing Chilalo graphite proved to be significantly more conductive than the control formulation consisting of premium quality primary synthetic graphite."

"Current market pricing for graphite with similar properties to Chilalo’s non-spherical by-product is US$12,000 per tonne," notes Evolution Energy.

Though, its use in commercial can coating has a sales value of up to US$60,000 a tonne on a dry graphite product basis.

Testing to date has seen approximately 36% of the feedstock to the spherical graphite generate the non-spherical by-product.

“We are extremely pleased that Chilalo graphite has not only proven itself to be an exceptional anode material for lithium-ion batteries but also that the non-spherical by-product can find lucrative uses in value-added electrically conductive applications,' said Managing Director Phil Hoskins.

Evolution notes that selling 200 tonnes into alkaline battery can coatings at effectively US$60,000 a tonne generates equivalent revenue as selling 15,000 tonnes of fine flake concentrate at US$800 a tonne.

Next steps

Evolution said it is currently reviewing its "entire downstream business plan to not just target battery anode materials but other high-value products with potentially shorter qualification timeframes."

In parallel, the company is currently testing the long-term performance of lithium-ion batteries that use its spherical graphite product.

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