The EcoGraf Ltd (ASX: EGR) share price is racing higher following a favourable decision by the Australian Government. During late-morning trade, the graphite producer's shares are up 5.8% to 63.5 cents.
Let's take a closer look at what EcoGraf updated the ASX market with today.
What did EcoGraf announce?
The EcoGraf share price is on the move today as investors appear excited about the company's progress.
In its announcement, EcoGraf advised that the Australian government has approved Major Project Status for the company's battery anode material facility.
Located in Western Australia, the state-of-the-art processing facility when constructed, will produce battery anode material products. This will be treated through the company's patented purification technology, which eliminates the use of toxic hydrofluoric acid.
In recent times, world governments have adopted new environmental, social and governance frameworks to help transition into cleaner energy.
EcoGraf noted that the Australian government recognises the importance of having a battery anode material facility in the country. Domestic production not only contributes to the growth of the critical minerals industry but also promotes other project developments.
It worth noting that this will be the first battery graphite processing facility to be established outside of China.
Words from the managing director
EcoGraf managing director Andrew Spinks commented on the favourable outcome:
We are delighted to receive this support from the Australian Government as our development is positioned as an integral part of the downstream modern manufacturing of battery and critical minerals in Australia.
EcoGraf's development strongly aligns with recent legislative policy changes in Europe that require higher standards of environmental and social governance (ESG) in battery supply chains.
Unprecedented investment is currently underway to establish self-sufficient and sustainable battery manufacturing supply chains to support the electric vehicle industry.
EcoGraf share price snapshot
The EcoGraf share price has rocketed over 900% in the past year and is up an astonishing 252% year-to-date. The surge reflects growing investor confidence within the lithium-ion industry and company itself.
Based on the current valuations, EcoGraf commands a market capitalisation close to $273 million.
