EV1’s graphite by-products are better, meaning more margin

We’ve been looking over the latest announcement from our graphite Investment, Evolution Energy Minerals (ASX:EV1) and we like what we see.

In the Tuesday announcement, EV1 profiled the performance of its non-spherical by-product from the proposed battery anode flowsheet:

Importantly, EV1 by-product outperformed the industry leading products in this area across both resistivity and conductivity.

Meaning batteries that use EV1’s by-product should last longer, are easier to make, cost less and perform better.

We think this is another win for EV1s downstream activities and further vindication of their choice to use an inverted flow sheet.

The current price for this kind of by-product is US$12,000 per tonne.

What’s next for EV1? Further product qualification initiatives, and an optimised DFS ahead of a final investment decision. We think announcements like the one released Tuesday should improve margin on EV1’s graphite and in turn, increase the investability of its Chilalo project for project financiers.