Evion Group NL has announced significant progress in its 50/50 joint venture (JV) with Panthera Graphite Technology (PGT). The JV has successfully completed production testing and sample approvals, paving the way for full-scale production of expandable graphite.

The JV is set to produce approximately 400 tonnes of expandable graphite over the next 10 weeks. A substantial portion of this initial production, around 386 tonnes, has already been sold to European buyers through a recently concluded contract. The JV expects to gain approximately A$2 million from this sale.

The JV aims to expand its production capacity to 4,000 tonnes per annum, leveraging the strong demand and attractive market dynamics. This expansion is projected to generate additional revenue of around US$6 million per year.

The sales agreement with Technografit GmbH, a leading European graphite trading company, ensures attractive pricing for the JV. The average selling price is expected to be between US$3,000 and US$3,300 per tonne (FOB), significantly exceeding production costs.

The global market for expandable graphite is experiencing robust growth, driven by its increasing applications in various industries, including electric vehicles (EVs), aerospace, energy storage, and electronics.

David Round, Managing Director of Evion, commented "We are thrilled to have achieved this significant milestone. Our JV's state-of-the-art facility in India positions us as a key player in the global expandable graphite market. We are confident that this is just the beginning of a prosperous future for Evion and our shareholders. Our expandable graphite facility near Pune, India is a technologically advanced, clean energy driven project that will produce globally significant quantities of expandable graphite to meet the world’s burgeoning demand of this material from sources outside of China. We have undertaken extensive research and testing with buyers and believe we can grow our business to be one of the largest producers of graphite downstream products in the world outside of China."

About Evion Group NL:

Evion Group NL is an ASX-listed company focused on developing and producing high-quality graphite products. The company's strategic initiatives include expanding its downstream processing capabilities and securing offtake agreements for its graphite products.

The JV's successful operations in India mark a significant step forward for Evion's global expansion plans. The company's Madagascar project continues to progress, with ongoing community and government engagement to obtain necessary permits. Evion is actively exploring opportunities in the battery anode material market and has submitted an application for EU grant funding to support the Maniry project in Madagascar.