EcoGraf (ASX:EGR) share price powers 10% ahead on industrial site news

This ASX company’s shares have been in strong form…

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The EcoGraf Ltd (ASX: EGR) share price is continuing its ascent since the beginning of July, up 30%. This comes after the graphite producer announced it will be evaluating an industrial site in Sweden.

During mid-afternoon trade, EcoGraf shares are racing to 78.5 cents, up 10.56%. In comparison, the All Ordinaries Index (ASX: XAO) is sitting at 7,760 points, up 1.3%

EcoGraf signs land reservation agreement

Investors are buying up EcoGraf shares as the company plans to further expand its presence in the lithium-ion battery market.

In a statement to the ASX, EcoGraf advised it signed a land reservation agreement with the Skelleftea municipality in Sweden. This follows the company’s previous efforts in exploring a number of sites across Europe, including Germany.

EcoGraf is assessing a 65,000 square metre industrial site in Skelleftea as a potential location for its battery anode materials facility. Located in the Vasterbotten region, the area benefits from ample clean and renewable energy. It is considered to have the lowest industrial power costs in all of Europe.

The company will commence a detailed evaluation of the potential development after completing a preliminary assessment to select the site. Pleasingly, the area is of sufficient size to accommodate future expansion for increasing production capacity along with battery anode recycling.

The company says its eco-friendly production process aligns with many world governments adopting new environmental, social and governance frameworks to help transition to cleaner energy.

EcoGraf’s facilities use the company’s patented purification technology which eliminates the use of toxic hydrofluoric acid (HF).

It is expected work will begin on the selected European site once EcoGraf’s new Australian facility is completed.

About the EcoGraf share price

The EcoGraf share price has rocketed by more than 1,118% in the past year and is up an astonishing 360% year-to-date. The surge reflects growing investor confidence within the lithium-ion industry and the company itself.

Based on the current valuations, EcoGraf commands a market capitalisation close to $353.1 million.

Motley Fool contributor Aaron Teboneras 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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