Evion Group is set to achieve a significant milestone with its expandable graphite joint venture (JV) in India, as the first shipments of its production are scheduled for export this month. The JV, located near Pune, has been progressing well, with the production of 400 tonnes of expandable graphite expected to be completed by the end of Q1 2025. As of mid-December 2024, around 120 tonnes of material had already been produced or partially treated in preparation for export.

Evion’s Managing Director, David Round, highlighted the company’s satisfaction with the development, emphasizing that production is on track to meet initial orders, with all 400 tonnes of material already sold. The first shipments will be directed to Europe, marking an important step in the company's global expansion. With additional concentrate of 500 tonnes on-site and favourable pricing terms secured for the second and third quarters of 2025, Evion is confident in its ability to meet future demand. The company expects gross revenue from its first year of operations to be between $6 million and $7 million, with further expansion planned.

The JV’s operations have benefited from strong demand for expandable graphite, particularly in Europe, where the material’s applications across industries like automotive, aerospace, and energy storage are rapidly increasing. The plant’s current capacity allows for production of 500 tonnes, but Evion is already evaluating the possibility of doubling production to 4,000 tonnes annually. The capex for this expansion is estimated at $500,000 to $750,000, with the potential to generate an additional $6 million in annual revenue. Given the favourable operating margins of around 50%, expanding production capacity appears to be a highly viable option.

Evion is also investing in environmentally friendly practices at the facility, with the installation of a unique effluent treatment plant that will recycle 95% of water used during production. This initiative is part of the company's broader commitment to sustainability and reducing its environmental impact.

As demand for expandable graphite continues to rise, particularly driven by its use in batteries, supercapacitors, and fire-retardant materials, Evion is well-positioned to meet the growing market need. The global market for expandable graphite is projected to grow at a CAGR of 7%, reaching $707 million by 2030. With strategic operations in India and Madagascar, as well as a growing portfolio of offtake agreements, Evion is poised for significant global growth in the coming years.

The company is also making strides at its Maniry Graphite Project in Madagascar, where it has secured local community support and government endorsement for the conversion of exploration licenses to exploitation licenses, paving the way for development. With these positive developments, Evion is preparing for a productive 2025, poised to strengthen its position in the global graphite market.