Slide 1: Business Update
ASX: EGR FSE: FMK ENGINEERING CLEAN ENERGY February 2021 Business Update www.ecograf.com.au
Slide 2: Disclaimer
Disclaimer Securities Disclaimer This presentation is for informational purposes only and does not constitute an offer to sell, or solicit to purchase, any securities. Such offer can be made only through proper subscription documentation and only to investors meeting strict suitability requirements.
Slide 3: Vertically integrated battery anode material business
Vertically integrated battery anode material business supporting the global transition to clean energy and e-mobility = Purification process eliminates Hydrofluoric (HF) Acid 3
Slide 4: Valuation proposition
Valuation proposition Battery Graphite Manufacturing Epanko Graphite Project Recycling – Recovery of Australia Tanzania Battery Anode Materials 20,000tpa Battery Graphite 60,000tpa Natural Flake Graphite Significant results achieved US$35m Annual EBITDA US$44.5m Annual EBITDA Production waste – larg
Slide 5: Corporate summary
Corporate summary Board and Executive Management Global Strategy Share Price Performance Price ($) Volume (m) Chairman $1.20 45.0 Robert Pett 40.0 German Office Pilot Plant $1.00 EcoGraf is positioned to support 35.0 the massive demand for high $0.80 30.0 Managing Director quality, sustainably produ
Slide 6: Compelling lithium-ion battery market opportunity
Compelling lithium-ion battery market opportunity Graphite forecast to dominate EV market forecast to drive +700% growth battery mineral demand to 2050 in natural graphite demand by 2025 Roskill Source: World Bank Group, May 2020 Source: World Bank 27kg Group, May 2020 Purified natural graphite per
Slide 7: Unprecedented investment in new European battery capacity
Unprecedented investment in new European battery capacity 24 Gigafactories announced with 600 GWh total annual production capacity = 9-10 million electric vehicles per year Norway, 202X Mo i Rana, 2023 To be announced Ramp-up to 40 GWh EU Fastest Growing Arendal, 2024 Skelleftea, 2021 8 GWh, later
Slide 8: EU Commission's battery regulation
EU Commission’s battery regulation NEW MEASURES ANNOUNCED IN DECEMBER 2020: Maroš Šefčovič’s – European Commission VP: “We need to diversify supply and make better use of the resources within the European Union, where we would apply the highest environmental and social standards to that effect.” Raw
Slide 9: Battery graphite business summary
Battery graphite business summary Establishing the world’s first commercial battery graphite purification facility outside of China Initial commercial production plant commencing at 5,000tpa, expanding to 20,000tpa EcoGraf™ proprietary purification process eliminates use of toxic hydrofluoric acid
Slide 10: Strong economic returns
Strong economic returns • World’s first purified spherical graphite processing facility outside of China at a time when electric vehicle, battery and anode producers are actively seeking to diversify battery mineral supply chains. Demand for spherical graphite forecast to grow 31.5% per annum over t
Slide 11: EcoGraf development timeline
EcoGraf™ development timeline German optimisation and EcoGraf™ Battery graphite scoping feedstock testing feedstock benchmarking study completed Product testing and completed program endorsement AUG Battery graphite Preliminary feasibility OCT Feasibility and NOV feasibility and EcoGraf™ 2015 engine
Slide 12: Initial battery graphite facility to be constructed in Western Australia
Initial battery graphite facility to be constructed in Western Australia Staged expansion from 5,000tpa to 20,000tpa Flexibility via scalable modular design 5,000tpa + PLAY MOVIE 20,000tpa 12 12
Slide 13: WA Kwinana-Rockingham Industrial Zone (KRIA)
WA Kwinana-Rockingham Industrial Zone (KRIA) Downstream value-added manufacturing and scientific research for the lithium-ion battery market A VIDEO FLY-OVER OF THE NEW FACILITY PLAY VIDEO KRIA is positioned to transform into a globally leading location for lithium-ion battery materials 13 13
Slide 14: Australian Government support
Kwinana expected to become a major Australian Government support global battery mineral processing centre Federal and State Government support for new technology and value added manufacturing • Australian Government funding support and debt financing in progress • Lead Agency role managed by Western
Slide 15: Flake graphite business summary
Flake graphite business summary Long life Epanko Graphite Mine to supply industrial and battery markets Bankable Feasibility Study completed by GR Engineering Services Bank appointed Independent Engineer’s Review completed by SRK Consulting Defined, de-risked and ready for construction Support
Slide 16: Bankable feasibility study (BFS) key highlights
Bankable feasibility study (BFS) key highlights • 50% increase in production to 60,000tpa positions Epanko to be a major baseload supplier of • Executed marketing strategy with strong alignment to German high value graphite products to traditional and industry and the battery supply chain in Japan,
Slide 17: Rigorous 60,000tpa BFS and strong economic returns positions Epanko for development
Rigorous 60,000tpa BFS and strong economic returns positions Epanko for development Epanko bankable feasibility study outcomes Development period (months) 19 • Robust technical and financial BFS completed, conforming with IFC Average annual throughput (tonnes) 695,000 standards – Average production
Slide 18: EcoGraf provides mine-to-market ESG supply chain assurance
EcoGraf provides mine-to-market ESG supply chain assurance • EcoGraf’s Epanko mine development satisfies Equator Principles social and environmental planning standards • Long-life, high quality supply of natural flake graphite for industrial and battery markets Epanko to transform the regional • Ide
Slide 19: Strategic position
Strategic position G L O B A L A N O D E S U P P LY C H A I N I S C U R R E N T LY 1 0 0 % R E L I A N T O N C H I N A German Office Pilot Plant Strategy to expand production Epanko Graphite Project and regionalise additional manufacturing facilities in Head Office Europe, Asia and the US to Kwinana
Slide 20: Battery and EV OEM joint ventures provide significant supply chains
Battery and EV OEM joint ventures provide significant supply chains + + + + + + + + + + Source: After Roland Zenn (Europe) 20 20
Slide 21: Battery recycling
Battery recycling Market Overview EU legislation announced in December 2020 requires • Recycling efforts have focused on cathode metals more battery recycling and greater transparency in • Carbon anode materials are currently not recovered the raw materials supply chain… Carbon material which is a w
Slide 22: EcoGraf's strategy to recover and reuse carbon anode material
EcoGraf’s strategy to recover and reuse carbon anode material 22 22
Slide 23: Cost effective purification process to recover carbon anode material
Cost effective purification process to recover carbon anode material Proprietary Purification Recovery of carbon anode material uses the standard proprietary EcoGraf™ purification process International patent pending for chemical purification process Eco-friendly Cost-effective High quality Mu
Slide 24: Positive EcoGraf purification results
Positive EcoGraf™ purification results The EcoGraf™ proprietary purification process has now been successfully applied to recycling of both ‘production scrap’ and ‘black mass’ materials z Anode recycling program for major EV manufacturer achieved >99.95% carbon purity from battery production scrap m
Slide 25: EcoGraf recovered high purity carbon anode material
EcoGrafTM recovered high purity carbon anode material EcoGrafTM process retains particle shape for reuse in battery applications Microscopic image: Recovered carbon anode material showing particle shapes. Oval shaped particles (spheronised natural graphite) and plate shapes (synthetic graphite) 25 2
Slide 26: EcoGraf positioned to recover and reuse carbon anode material
EcoGraf positioned to recover and reuse carbon anode material Agreement signed with South Korea’s largest lithium-ion battery recycling group SungEel HiTech 26 26
Slide 27: Carbon anode material composition and pricing
Carbon anode material composition and pricing Attractive value uplift from the reuse of blended Carbon Anode Materials Source Benchmark Minerals and market sources 27 27
Slide 28: Battery production scrap opportunity
Battery production scrap opportunity Battery Cell Production Estimated production losses during battery cell manufacturing and product testing: Potential Market Size as % of Battery Production Source: Panasonic Investor Presentation , Tesla company reports Early Production Target Production losses d
Slide 29: EcoGraf recycling - lowering EV production carbon emission footprint
EcoGraf recycling - lowering EV production carbon emission footprint Battery represents over 40% of total carbon (CO2) emission footprint from EV manufacturing • Estimated 10% to 30% production loss during cell manufacturing and battery testing • Solution: Develop ‘In-Process’ recovery of production
Slide 30: Blended battery anode material opportunity
Blended battery anode material opportunity z Lower battery production cost Lower carbon emissions BLENDED ANODE MATERIAL PRODUCTS Blending EcoGraf’s high purity ‘Battery Graphite’ with ‘Recovered Carbon Anode Materials’ provides an attractive opportunity to support the transition to clean energy 30
Slide 31: Modular recycling pilot plant
Modular recycling pilot plant TA I L O R E D S O L U T I O N EcoGrafTM proprietary purification has the potential to provide a tailored solution to increase recycling of recovered battery anode material • Engineering design commenced for a containerised pilot plant • Funding for the pilot plant to b
Slide 32: Vertically integrated battery anode material business
Over 8 years of technical work Lithium-ion battery recycling business programs and extensive product provides the opportunity to lower battery qualification with a range of potential production costs and reduce carbon Vertically integrated customers emissions from EV manufacturing Bank due dil
Slide 33: Outlook
Outlook B AT T E R Y P R O D U C T S • Finalise EPC arrangements and complete engineering programs with GR Engineering for the construction of the initial 5,000tpa EcoGraf™ processing facility in Western Australia • Arrange US$35m debt financing with the Australian Government for the expansion of th
Slide 34: The future is electric.
The future is electric. ASX: EGR FSE: FMK Head Office 18 Richardson Street West Perth, Western Australia 6005 T: +61 8 6424 9000 www.ecograf.com.au