Vertically integrated battery anode developer EcoGraf appears to be on its way to securing a substantial $105-million for the development of its Epanko graphite project, in Tanzania.
The company, which is listed on the ASX, says the German government has confirmed the project’s eligibility for cover for the untied loan guarantee (UFK) scheme, based on the support of German offtakers for the initial 73 000 t/y Epanko development.
EcoGraf has mandated KfW IPEX-Bank to obtain UFK cover from the German government. The UFK programme incentivises the development of key projects that can provide a long-term supply of critical minerals for German industry.
Subject to satisfaction of credit criteria, loan funding can be provided under the programme for terms longer than are generally available from commercial lenders, which provides increased financial flexibility for new developments during ramp-up and operation.
EcoGraf notes that the time of the agreement is highly favourable for Epanko, as China is set to impose graphite export controls from December 1.
The company states that demand for natural flake graphite is set to significantly outstrip available supply over the next decade. Yearly natural graphite demand is expected to increase from 1.1-million tonnes in 2022 to more than four-million tonnes by 2030, leading to a market shortfall from 2026 and supporting the introduction of Epanko’s graphite products.
EcoGraf is also planning to develop graphite mechanical shaping facilities in Tanzania to supply feedstock for its future active anode material facilities located in key global battery markets.