The Ecograf (ASX:EGR) share price plummeted 17% today

The Ecograf (ASX:EGR) share price was 17% lower at market close today. Let’s take a look at what happened.

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The Ecograf Ltd (ASX: EGR) share price finished today’s session 17.28% lower at 67 cents a share.

With no price-sensitive news out today to explain the sharp nosedive, let’s look at last week’s investor presentation to see what the graphite producer has been up to.

Outlook for Ecograf

Ecograf is focused on building a vertically integrated business to produce high purity graphite for the lithium-ion battery market.

Looking at its latest investor update, the company revealed its plans to finalise arrangements and complete engineering programs with GR Engineering for the construction of a processing facility in Western Australia.

Ecograf also intends to advance works for a second plant site in Europe and to continue to build strategic partnerships with key battery industry participants.

The business is also positioning to undertake the engineering and construction of a containerised pilot plant. This will provide recovered carbon anode material for product qualification processes.

Ecograf advised that it will continue test work with electric vehicle (EV) and battery manufacturers.

Ecograf snapshot

Ecograf claims to be the world’s first purified spherical graphite processing facility outside of China. 

The company notes that demand for spherical graphite is forecast to grow 31.5% per annum over the next decade and reach 1.2 million tonnes per annum by 2030.

Ecograf’s strategy involves expanding graphite production and regionalising manufacturing facilities in Europe, Asia and the US to support increasing demand.

Going forward, Ecograf will pursue ongoing government support for research, innovation and advanced manufacturing programs.

The business believes that its recovery of graphite from recycled batteries using its EcoGraf process will enable the recycling industry to reduce battery waste and use recycled graphite to improve battery lifecycle efficiency.

Over the past year, the Ecograf share price has gained a huge 737%. Year to date, Ecograf shares are up 294%.

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Motley Fool contributor Gretchen Kennedy has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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