Home / Sector / Materials Shares / Ecograf (ASX:EGR) share price launches 29% on battery material deal

Ecograf (ASX:EGR) share price launches 29% on battery material deal

Here's the news boosting the company's stock today.

Posted by
Brooke Cooper
Brooke has been a Motley Fool contributor since early 2021. She holds a Bachelor of Communication with specialisations in journalism and international studies from Charles Sturt University. Brooke aims to inform and excite Aussies keen to grow their wealth by investing in ASX companies. When not writing or researching, you'll likely find Brooke gallivanting around South East Queensland.
Published
| More on:
asx share price increase represented by golden dollar sign rocketing out from white domes of lithium

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

Thursday is proving to be a great day for the Ecograf Ltd (ASX: EGR) share price after the company announced that it's writing up an offtake agreement.

Ecograf has entered a memorandum of understanding with South Korean multinational industrial company POSCO International. The agreement will see Ecograf selling its HFfree battery anode material products to POSCO International.

The companies intend to sign a formal offtake agreement following their understanding.

At the time of writing, the Ecograf share price is 82.5 cents, 28.91% higher than its previous close.

Let's take a look at today's news from the battery anode material business.

Ecograf share price surges on Thursday

Ecograf's stock is surging higher on the back of a planned offtake agreement for the products of its upcoming Australian Battery Anode Material facility and its planned facility in Europe.

By supplying POSCO International with its HFfree battery anode material products, Ecograf will be supporting POSCO's anode production expansion plans.

According to Ecograf, POSCO International is a key subsidiary of Korean steel maker POSCO Group.

POSCO International has an international network made up of more than 80 subsidiaries. It uses its position to establish value chains in various sectors including steel, energy, machinery parts, and infrastructure. 

On top of the offtake agreement, Ecograf and POSCO International will look for other opportunities to work together on product development, battery anode recycling, and EcoGraf's battery anode material business' development.

Ecograf is working to build its first battery anode materials facility in Perth. It will focus on exporting battery anode material products to Asian, European, and North American anode, lithium-ion battery, and electric vehicle markets.

Additionally, Ecograf announced it has signed a land reservation agreement for an industrial site in Sweden in August. There, it's planning to build another battery anode facility.

Right now, the Ecograf share price is 385% higher than it was at the start of 2021.

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.

More on Materials Shares

A small child in a sandpit holds a handful of sand above his head and lets it trickle through his fingers.
Materials Shares

Why Lynas shares are sliding today, despite a massive year

| Aaron Teboneras

Lynas shares slide today following profit-taking, despite strong gains over the past year.

Read more »

Green arrow going up on stock market chart, symbolising a rising share price.
Materials Shares

So BlueScope shares go to all-time high of $31. Big deal. What next?

| Marc Van Dinther

Brokers believe further records still possible.

Read more »

A cartoon drawing of a battery with arms, legs, and a sad face slumping forward and looking despondent.
Materials Shares

One of the ASX's biggest losers today. What is happening at Core Lithium?

| Aaron Teboneras

Core Lithium shares slide nearly 10% as lithium prices pull back and technical pressure builds.

Read more »

A group of people in suits and hard hats celebrate the rising share price with champagne.
Materials Shares

BHP shares rise on solid half and copper upgrade

| James Mickleboro

The mining giant had a strong half. Here's what it reported.

Read more »

a miniature moulded model of a man bent over with a pick working stands behind a sign that has lithium's scientific abbreviation 'Li' with the word lithium underneath it against a sparse bland background.
Materials Shares

Up 365% since April, should you buy the recent dip in Core Lithium shares?

| Bernd Struben

Core Lithium shares hit one-year plus highs on 8 January before taking a tumble.

Read more »

an attractive woman gives a time out signal with her hands, holding them in a T shape, indicating a trading halt.
Materials Shares

Why this ASX small cap has hit the pause button again

| Aaron Teboneras

This ASX small cap is back in a trading halt, with the market waiting on details of a planned US…

Read more »

Materials Shares

ASX All Ords mining stock sinking on big Tesla news

| Bernd Struben

The latest update from Elon Musk’s Tesla is pressuring this ASX mining stock today. But why?

Read more »

Three satisfied miners with their arms crossed looking at the camera proudly
Materials Shares

ASX 200 materials sector outperforms as mining shares continue their ascent

| Bronwyn Allen

Plenty of ASX 200 mining shares hit multi-year highs last week amid continually rising commodity values.

Read more »