Evolution Energy Minerals (ASX:EV1) has agreed to undertake a commercial verification program to evaluate the amenability of graphite from its Chilalo graphite project in Tanzania to producing coated battery anode materials utilising thermal purification and proprietary coating technologies.
The company’s management said it is committed to developing its battery anode strategy alongside the downstream markets for high-value expandable and micronised graphite that were proposed in the DFS.
Managing Director, Phil Hoskins, said the battery anode strategy is not a pre-condition to making a construction decision by H2 2022, however Evolution will advance studies in parallel to provide leverage to this fast-growing market segment.
The growing demand for battery anode materials is obvious but ensuring that those materials are sourced in a sustainable, ethical and transparent way is a nonnegotiable for battery manufacturers and financiers,” Mr Hoskins said.
“Sustainable graphite supply is fundamental to our strategy, with aspirations of becoming the world’s first net zero carbon graphite mine. We intend to embed that same sustainability ethos in our battery anode materials strategy, thereby becoming the supplier of choice to battery manufacturers of the future.”
Mr Hoskins said the company is committed to increasing its battery anode exposure as a means of diversifying its advanced value-added products strategy.
The company has re-commenced discussions and qualifications with leading battery anode technology partners with a view to developing both strategic supply and technology partnerships.
A commercial verification program has commenced to evaluate the production of coated battery anode materials using commercial proven thermal purification and a proprietary coating technology to deliver the finished product.
Critical to the development of a successful battery anode strategy are the concepts of sustainability and traceability. Practically 100% of the world’s battery (spherical) graphite is produced in China using highly toxic chemicals such as hydrofluoric acid (HF).
The company understands that existing anode manufacturers in China use between 400-600kg of HF for every 1 tonne of graphite feedstock. Battery manufacturers and automakers are becoming increasingly focused on the sustainability of the raw materials in their supply chains.
As part of its Circular Economy Action Plan and putting plans in place to contribute to the zero pollution ambitions set in the European Green Deal, the European Commission is going to require that:
- Electric vehicle (EV) batteries must have a “carbon footprint declaration” from July 1. 2024;
- EV batteries will have to bear a “carbon intensity performance class label” from 2026; and
- EV batteries must comply with “maximum carbon footprint thresholds” from 2027.
As such, European car manufacturers are seeking to source battery minerals with the highest sustainability credentials. For example, graphite is listed as a priority raw material for sustainable sourcing in Volkswagen Group’s Responsible Raw Materials Report.
“The Commission puts forward a new future-proof regulatory framework on batteries to ensure that only the greenest, best performing and safest batteries make it onto the EU market,” European Commission Vice-President for Interinstitutional Relations Maroš Šefčovič stated in December 2020.
“This ambitious framework on transparent and ethical sourcing of raw materials, carbon-footprint of batteries, and recycling is an essential element to achieve open strategic autonomy in this critical sector and accelerate our work under the European Battery Alliance.”
By combining environmentally-friendly thermal purification technology with Evolution’s desire to develop Chilalo as the world’s first net zero carbon graphite mine, the Company is positioning itself to produce the world’s most green and sustainable battery anode materials.
Mr Hoskins said Evolution’s strategy is to maintain supply chain custody of the graphite from the Chilalo mine site through to the production of a coated battery anode material.
“Delivering this level of traceability is expected to be highly desirable to battery manufacturers and automakers who need to demonstrate compliance with the increasingly regulated disclosure required from their supply chains.
“Concurrently with the commercial verification programme, the company is advancing product qualification with Tier 1 anode manufacturers as a means of facilitating offtake agreements for the development of the Chilalo Graphite Project in Tanzania.”
