Up 252% this year, EcoGraf (ASX:EGR) share price keeps on powering

The EcoGraf Ltd (ASX: EGR) share price is racing higher following a favourable decision by the Australian government. Here are the details.

| More on:
Smiling female investor holds hands up in victory in front of a laptop

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

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.

Motley Fool contributor Aaron Teboneras 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.

More on Share Market News

Investor sitting in front of multiple screens watching share prices
Share Market News

5 things to watch on the ASX 200 on Thursday

The ASX 200 is expected to have a better day on Thursday...

Read more »

Two hands being shaken symbolising a deal.
Mergers & Acquisitions

How many global mega deals involved ASX 200 shares in the first half of 2022?

Deal making among ASX 200 shares helped drive a 25.4% increase in M&A activity in Australia in the first half…

Read more »

Top 10 blank list on chalkboard
Share Market News

Here are the top 10 ASX shares today

Here are your top 10 biggest gainers in the ASX 200 on Wednesday.

Read more »

a man peers between two large piles of papers and files with a wide-eyed, wide-mouth look of dread at the amount of work he has to do.
Share Market News

Here are the 3 most heavily traded ASX 200 shares on Wednesday

We take a look at the most traded ASX 200 shares by volume today.

Read more »

workers stand over a large spool of copper pipe.
Share Market News

ASX copper shares in the red as copper price sinks to 19 month low

Copper prices fell in global markets overnight.

Read more »

Man with rocket wings which have flames coming out of them.
Share Market News

EML share price leaps 16% on Spanish government stimulus contract

EML shares are on fire on Wednesday...

Read more »

Share Market News

ASX 200 midday update: BHP and Fortescue sink, EML and ZIP jump

The ASX 200 is having a difficult day due to weakness in the mining sector...

Read more »

Business woman watching stocks and trends while thinking
Share Market News

5 things to watch on the ASX 200 on Wednesday

The ASX 200 looks set to have a tough day on Wednesday...

Read more »