Global Graphite Supplier, Graphex Group Entered into an Agreement with Jixi Mashan Government in China to Support its Continued Expansion
21 September 2022 - 8:30PM
Today, the global supplier of graphite Graphex Group Limited (NYSE
American: GRFX | HKSE: 6128), announced it has entered into an
agreement with the Jixi Mashan Government on a project for a new
production facility located in the Jixi (Mashan) Graphite
Industrial Park (the “Project”). The agreement will allow Graphex
to increase its annual production of graphite while establishing a
graphite deep processing and production facility. The new site will
have an intended output of 20,000 metric tons of high-purity
spherical graphite in Phase I and an additional 10,000 metric tons
of high-purity spherical graphite and 10,000 metric tons of battery
anode materials in Phase II of the Project respectively.
Within the Jixi (Mashan) Graphite Industrial Park, the new
factory for Phase I of the Project will feature five workshops
across 270,000 square feet, an office building, and employee
accommodation areas. The Project will roll out over the course of
the next three years. Under the MOU, the Jixi Mashan Government
will provide Graphex with the right to purchase the factory
premise, while providing green electricity sources such as wind and
solar to operate the facility.
Graphex believes, based on industry reports including Benchmark
Mineral Intelligence, the combined annual demand for graphite anode
material capacity to supply EV battery gigafactories in the U.S.,
Europe, and China will be over 4 million tons by 2030, which
represents a 10X increase over the demand today.
“The global rise in demand for graphite continues unabated, and
Graphex’s new production facilities in the U.S., China, and
eventually Europe, will ensure that we can deliver a long-term
stable supply of quality materials that are integral to the EV
ecosystem,” said John DeMaio, President of Graphex Group and CEO of
Graphex Technologies, Graphex Group’s operating subsidiary in the
US. “The expansion of our production capabilities in Jixi and in
Warren, MI are further steps in following through on our strategic
plan to provide foundational support to the EV industry when and
where it is needed. China has a well-established EV manufacturing
industry and is a stable and expanding revenue base for us, so
expansion of our existing operations is well-supported. And as the
EV industry continues to accelerate in the U.S. demand for graphite
is approaching 200,000 tons per year to supply just the
gigafactories that have been announced so far. Currently, domestic
production capacity of battery grade natural graphite is negligible
and, given the emphasis on creating domestic U.S. supply chains as
promoted recently in the Inflation Reduction Act, the Bipartisan
Infrastructure Law, and Defense Production Act, we see significant
opportunity for our experienced production capabilities to bridge
that gap.”
In addition, as part of the agreement, Graphex Group has
established a wholly foreign owned enterprise, Graphex
(Heilongjiang) New Energy Technologies Company Limited, in Jixi
City to carry out the proposed production facility. The added
facility will now allow Graphex Group to gradually increase its
annual production capacity to 40,000 tons metric tons of
high-purity spherical graphite and 10,000 metric tons of battery
anode materials in China starting in 2023.
Graphex continues development of a production plant for 15,000
metric tons of natural graphite battery anode material in Warren,
Michigan through a joint venture and has recently announced a new
initiative to establish a new pilot plant to produce high-purity
spherical graphite within the same facility.
To learn more about these developments and more from Graphex
Group, please visit www.graphexgroup.com
About Graphex: Graphex Group Limited, a Cayman
Island company with principal offices in Hong Kong and regional
offices in Shanghai and Royal Oak, MI, USA. Graphex is focused on
the development of technologies and products to enhance renewable
energy, particularly the enrichment of spherical graphite and
graphene, key components for EV batteries and lithium-ion batteries
for other use cases. Proficient in the commercial deep processing
of graphite, Graphex has extensive commercial experience producing
battery grade purified spherical graphite to the power battery
market, currently at a volume of 10,000 metric tons per annum (tpa)
with intentions to expand production to 40,000 tpa over the next
three years. With a strategy to expand its global operations to
support energy transition and electrification efforts worldwide,
Graphex is currently among the top suppliers of specialized
spherical graphite to the EV and renewable energy industries and
holds patents in areas including products, production methods,
machinery design, and environmental protection.
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