Volt Resources Secures Contract for Premium Graphite Supply to ZG
Volt Resources Secures Contract for Premium Graphite Supply to ZG

Volt Resources Secures Contract for Premium Graphite Supply to ZG

  • 29-Apr-2024 11:59 AM
  • Journalist: Rene Swann

Volt Resources Limited (ASX:VRC), a renowned graphite producer and developer of natural graphite anodes, is delighted to report that Zavalievsky Graphite (ZG) has secured a solid order for 40 tonnes of high-purity (99.5%) micronized graphite at a price surpassing €2,700 per tonne. Volt perceives the augmentation of ZG’s high-purity graphite production and distribution in Europe and other regions as a significant opportunity to generate favorable cash flow amidst the current graphite market conditions.

Within the graphite market's array of available grades, Zavalievsky Graphite (ZG) stands out for its distinctive capability to manufacture high-value, differentiated graphite with a purity of 99.5%. This quality commands a typical price of €2,000 per tonne for -100 mesh, in contrast to the prevailing price of approximately US$661 per tonne CIF Europe for graphite flake with 94% carbon content, also at -100 mesh. ZG's strategic direction involves fostering the growth of its high-value purified graphite segment by expanding its current high-purity graphite production line. Additionally, the company aims to commence pilot-scale production, utilizing an environmentally friendly process pending patent approval, for a 99.95% purity graphite product by 2025. This product holds suitability for manufacturing active anode materials utilized in lithium-ion batteries and other battery technologies.

High-purity graphite products, with purities of 99.5% or higher, command premium prices, leading to increased revenues and value generation for both ZG and Volt.

Asimwe Kabunga, Executive Chairman of Volt, remarked, "Volt is confident in the potential of the Zavalievsky Graphite business, given its strategic proximity to European markets, exceptional processing capabilities, and extensive operational expertise over the years.

The mine and processing facilities are situated in a stable area, free from any military activity, and benefit from logistical routes enabling the transportation of products and materials to and from Ukraine.

The Company has initiated discussions with a prominent European financial institution regarding funding for improvement programs related to cost, productivity, and ESG initiatives for Zavalievsky. Updates will be shared as these discussions advance.”

Apart from graphite, ZG's existing product range includes crushed stone, with intentions to commence profitable sales in the domestic market within the current calendar year. Additionally, ZG aims to explore and develop its abundant garnet resources as a potential future product line.

Volt Resources Limited (“Volt”) is a critical minerals and battery materials company traded on the Australian Stock Exchange with the ASX code VRC. It is an established graphite producer and a developing manufacturer of natural graphite anodes, which are crucial components of lithium-ion batteries. Volt holds a 70% stake in the Zavalievsky Graphite (ZG) business in Ukraine. The ZG mine and processing facilities have been operational since 1934 and are strategically located near key markets experiencing significant growth in lithium-ion battery production.

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