EcoGraf (ASX:EGR) entered a non-binding memorandum of understanding with Mitsubishi Chemical.
The partnership establishes a formal framework for the supply, technical qualification, and eventual commercialisation of natural flake and spherical graphite products, critical for MCC’s extensive battery anode operations.
The agreement serves as an escalation of an initial letter of intent, following rigorous technical evaluations and product sampling between the two companies.
Under the terms of the MOU, MCC is considering a long-term purchase arrangement for up to 10,000 tonnes per annum of purified or unpurified SpG.
Alternatively, the deal could encompass approximately 16,500 tonnes per annum of –100 mesh natural flake graphite, depending on ongoing technical outcomes.
This collaboration is a significant win for EcoGraf’s vertically integrated strategy. It links their Epanko Graphite Project in Tanzania and proposed mechanical shaping facilities with MCC’s tier-one manufacturing capabilities.
Furthermore, it supports EcoGraf's plans for its proprietary HF-free purification facilities, including a potential site in Japan.
Mitsubishi Chemical, Japan's largest chemical manufacturer and a dominant global supplier of anode active materials, recently expanded its Kagawa plant to meet rising demand from international original equipment manufacturers.
EcoGraf Managing Director Andrew Spinks highlighted that the MOU reflects "positive technical engagement" and provides a structured pathway to support long-term relationships with tier-one battery manufacturers.
At the time of reporting, EcoGraf’s share price was $0.39.