Abu Dhabi, United Arab Emirates - Falcon Energy Materials plc (TSX-V: FLCN) (OTCQB: FLCNF) ('Falcon' or the 'Company') is pleased to announce the positive results from the technical-economic study ('Technical Study') for its natural graphite spheroidization, purification and coating plant (the 'Anode Plant') in the Kingdom of Morocco ('Morocco').
The Technical Study, prepared to the standards of the Association for the Advancement of Cost Engineering ('AACE') Class 3 level of accuracy by Dorfner Anzaplan UK Limited ('Anzaplan'), demonstrates the strong financial and operational fundamentals of Falcon's vision to become a low-cost producer of coated, spheroidized and purified graphite ('CSPG') at industrial scale.
HIGHLIGHTS
Target annual production of 26,000 tonnes of CSPG and 19,000 tonnes of fines
Initial capital costs, including contingency, estimated at US$86 million and Operating costs of US$3,168 per tonne of CSPG1
Matthieu Bos, Chief Executive Officer of Falcon, commented, 'This Technical Study validates our vision - it confirms that Falcon's approach is the most credible path to producing high-quality, low-cost CSPG at industrial scale. We are now moving decisively to close the critical gaps in the battery materials supply chain and to deliver essential anode materials to Western manufacturers and end-users through a reliable, compliant and qualified source.''
Leveraging Advanced Technology and Procurement
The Anode Plant in Morocco is supported by a strategic partnership with a leading CSPG producer (the 'Technical Partner'), with extensive experience building and operating both synthetic and natural graphite anode plants in China. The Technical Partner recently successfully built and commissioned in a large-scale anode plant in China. Falcon and the Technical Partner have leveraged the proven design, procurement and supply chain expertise from the recently completed plant to establish a highly competitive facility in Morocco.
This partnership enables Falcon to leverage established technology, procurement chains and learnings from recent process efficiencies to deliver high quality anode material at scale and competitive costs, to the rapidly growing European and North American markets.
Anode Plant Flow Sheet
The Technical Study represents an additional step in confirming the economic viability of the CSPG facility in Morocco. Falcon's Anode Plant design includes: Spheroidization Plant: Using the latest processes to shape graphite flakes into spheres, increasing surface area and energy density, to produce spherical graphite (SG'); Purification Plant: Using hydrofluoric acid alongside hydrochloric and nitric acids to remove impurities, producing 99.95% spherical purified graphite (SPG') and Coating Plant: Applying an amorphous carbon (pitch tar) coating on SPG to enhance energy density and increase battery safety and longevity, producing coated SPG (CSPG').
Location and Infrastructure
The Anode Plant, requiring approximately five hectares of land, will be strategically located in Jorf Lasfar, Morocco, benefiting from access to key port and energy infrastructure and free trade agreements with both the United States and the European Union. Falcon contemplates the construction of one single building (the 'Super Building') to optimize the Anode Plant footprint and operational efficiencies.
Graphite Concentrate
Falcon has tested several high quality and attractively priced graphite concentrates that can serve as feedstock for the Anode Plant. There is a relative abundance of graphite feedstock available in the market, sourced from China, other international producers, and Falcon's own Lola Graphite Project once in production.
Spheroidization Plant
The spheroidization plant consists of three process steps: micronization, spheroidization of the micronized graphite to produce coarse primary SG, and secondary spheroidization to produce fine SG. The overall yield of the spheroidization plant is 60% resulting in 28,000tpa of SG. The process produces spherical particles averaging 18 microns (categorized as 'SG18') and 8 microns (categorized as 'SG8'). SG18, representing 80% of the feed, is collected into a main collector and sent to the purification plant by pneumatic transportation. SG8, representing 20% of the feed is collected and sent to secondary spheroidization circuit in the purification plant, while the remaining fines by-product particles are sent directly to the bagging station and sold separately.
Purification Plant
The purification plant increases SG purity from 95% to 99.95%, producing SPG. The purification plant consists of four separate process steps: a thermally supported chemical reaction, pressure filtration, washing, and drying. The SG is washed with a mixture of hydrofluoric acid, hydrochloric acid, nitric acid (the 'Key Acids') and steam to remove impurities such as SiO2, Al2O3, MgO, Fe2O3, and CaO. Key Acids are recovered and reused while final washing and drying reduce moisture to below 1%.
Coating Plant
The coating process is the final step in CSPG production. Graphite particles are coated with a thin carbon film (3-25 nanometres thick), using 10% wt. pitch tar as a carbon precursor, followed by thermal treatment in a coating furnace for SP18 and SP8 products. The cooled CSPG is deagglomerated, demagnetized, sieved and bagged to meet stringent end-user specifications.
Gas and Water Treatment
The Anode Plant incorporates advanced gas and water treatment systems to meet Moroccan environmental standards. The gas scrubber neutralizes off-gasses from the purification and coating plant using hydrated lime. The water treatment system, with a capacity for 432,000 t/a, treats all effluents before discharge to the local sewage network, ensuring compliance with Moroccan discharge limits.
Capital and Operating Costs
The capital and operational costs are based on the actual costs of the Technical Partner's plant in China, adjusted for costs associated with logistics and construction in Morocco based on fiscal 2025 cost assumptions. There can be no assurance that costs incurred during the future operation of the Anode Plant will not be materially different than the cost estimates provided below, which are based on fiscal 2025 cost assumptions. The capital and operating cost estimates comply with the AACE' Class 3 level of engineering (recommended Practice 47R-11), with accuracy ranging between -15% to +20%.
Next Steps
The Company has commenced the environmental impact assessment ('EIA') which is expected to be completed in H1 2026. The EIA is required to obtain the various required construction permits which Falcon is applying for in parallel with the EIA.
In parallel with the EIA, the Company will work on the detailed engineering of the Super Building, Anode Plant flow sheet and ancillary infrastructure.
Construction of the pilot plant (the 'Pilot Plant') at Jorf Lasfar, near Casablanca, Morocco remains on track for completion in Q4 2025 with availability of first CSPG samples for customer testing expected as early Q4 2025. These samples are instrumental in securing long-term offtake agreements. Testing has commenced with several potential customers and preliminary feedback on the sample quality is expected in Q4 2025.
Falcon is committed to building and operating the Anode Plant and Pilot Plant in compliance with the highest international standards, ensuring the highest levels of safety, environmental sustainability, and social responsibility.
ABOUT ANZAPLAN
Anzaplan specializes in process design and engineering services for graphite beneficiation projects. Anzaplan offers advanced graphite evaluation services for high value applications including strongly growing markets such as anode materials in lithium-ion batteries. Starting with the initial characterization of the graphite ore through development of a beneficiation process to obtain a high- quality flake graphite concentrate, shaping and purification into battery grade spherical graphite, characterization of electrochemical performance and testing of lithium-ion cells.
About Falcon Energy Materials PLC
Falcon Energy Materials (TSX-V: FLCN, OTCQB: FLCNF) is aiming to be the premier provider of natural Coated Spheronized Purified Graphite, a critical component for energy storage solutions. As a dedicated chemical refiner of natural graphite concentrate, Falcon is working diligently towards the development of a state-of-the-art 25 ktpa CSPG production facility in Morocco.
Strategically partnered with leading Chinese technology firms and Tier One Moroccan partners, Falcon benefits from advanced technological expertise, access to high-quality raw materials and chemicals, and a prime geographical location-factors that will enable it to deliver consistent, high-quality supply to global markets.
With a clear focus on sustainable growth and innovation, Falcon aims to become the go-to producer of natural CSPG, supporting widespread adoption in energy storage and other emerging industries.
Contact:
Matthieu Bos
Tel: +971 2307 4013
Email: m.bos@falconem.net
Matt Johnston
Email: m.johnston@falconem.net
(C) 2025 Electronic News Publishing, source ENP Newswire