Why the EcoGraf (ASX:EGR) share price powered ahead today

EcoGraf shares saw a boost today on positive testing results from an upcoming project.

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The EcoGraf Ltd (ASX: EGR) share price rose today after the company announced progress on its upcoming battery anode material facility.

At market close, the graphite producer’s shares finished the day at 63.5 cents, up 0.79%. It’s worth noting that at one point, the company’s shares reached an intraday high of 66 cents, up 7%, before investors took profit off the table.

Quick take on EcoGraf

Based in Australia, EcoGraf is engaged in the exploration and development of graphite and nickel projects in Tanzania. The company uses innovative technologies to recover graphite from recycled batteries, thus reducing waste and environmental impact.

EcoGraf’s battery facility update

According to its release, EcoGraf reported that pre-construction locked-cycle testing has been completed by GR Engineering Services Ltd (ASX: GNG). The program aimed to provide data for detailed engineering design of EcoGraf’s new battery graphite facility in Western Australia.

The state-of-the-art processing facility, when constructed, will produce battery anode material products that will be treated through the company’s patented purification technology, which eliminates the use of toxic hydrofluoric acid (HF).

EcoGraf’s eco-friendly process comes at a time when world governments have adopted new environmental, social and governance frameworks to help transition into cleaner energy.

EcoGraf stated that a total of six cycles were completed, processing spherical graphite through its HFfree purification flowsheet. This was conducted to mimic operational conditions and obtain final data for construction of the facility.

The company reported the testing achieved purities of 99.97% for the carbon product, highlighting the effectiveness of its HFfree purification process. However, the company is aiming to exceed carbon purity targets, which will lead to lower production costs.

GR Engineering Services manager of engineering Ryan Kriedemann commented:

The results of the locked-cycle testing were very encouraging and confirmed that the EcoGraf HFfree process effectively removes impurities from flake graphite feedstock to deliver high purity battery anode material. Mass balance analysis data was also very good and so we’ll evaluate the potential to reduce the level of reagent used in the EcoGraf process, which will deliver operational efficiency benefits for the new facility.

The EcoGraf share price has accelerated by more than 650% over the past 12 months.

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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.

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