Here’s why the Ecograf (ASX:EGR) share price is up 8% today

The graphite company is on the way to opening to a new facility in Australia.

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asx share price growth represented by cartoon man flexing biceps in front of charged battery

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The Ecograf Ltd (ASX: EGR) share price is gaining today after the company released news it’s one step closer to producing battery anode material at its Australian facility.

At the time of writing, shares in Ecograf are swapping hands for 67.5 cents apiece – 8% more than their previous closing price.

The battery anode producer has announced the results from a mechanical shaping program using a commercial-scale plant in partnership with a leading equipment manufacturer.

The program helped Ecograf get closer to finalising the engineering design for its Battery Anode Material Facility.

Successful mechanical shaping program

The Ecograf share price is reacting positively to news the program enabled the company to achieve an overall product yield of more than 60%.

Previously, Ecograf was able to reach an overall product yield of around 50%.

The mechanical shaping program looked at how to efficiently shape graphite. To sell graphite feedstock as battery anode product, a company has to be able to shape it to customer specifications.

The program found 3 core products that Ecograf’s facility will be able to produce to maximise its yields. These are:

  • 15-16µm battery anode material.
  • ultrafine battery anode material, known as ‘super’ BAM products. ‘Super’ BAM products are used to make high-performance batteries. They can sell for between 20% to 25% more than other battery materials.
  • Fines bi-products – which can be used in industrial and alkaline batteries.

According to Ecograf, the findings of the program will help it to select equipment for its facility before construction starts.

Ecograf share price snapshot

The Ecograf share price has been performing exceptionally well lately.

Right now, it has gained 297% in 2021. It’s also a whopping 988% higher than it was this time last year.

The company has a market capitalisation of around $303 million, with approximately 449 million shares outstanding.

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Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. 

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. 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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