EcoGraf Confirms HFfree Process Cost Competitiveness for Battery Graphite Supply Chain

EcoGraf Confirms Global Cost Competitiveness of Its Patented HFfree Process — A Major Step Toward Non-Chinese Battery Supply Chain Leadership

EcoGraf Limited (ASX: EGR; FSE: FMK) has released the results of a comprehensive global assessment confirming the EcoGraf HFfree process cost competitiveness for battery graphite supply chain operations across seven potential locations spanning Asia, Europe, and the United States. The assessment, covering proposed 25,000 tonne-per-annum (tpa) purification facilities, validates both the technical robustness and economic strength of EcoGraf's technology at a time when global battery supply chains are undergoing a fundamental structural shift away from Chinese dependency.

The headline finding demonstrates an average purification operating cost of approximately US$478/t of spherical purified graphite (SPG), with a fully integrated supply chain cost estimated at approximately US$1,441/t based on a U.S. location — positioning EcoGraf as a credible, cost-competitive alternative to Chinese-sourced battery anode material.

Global Assessment Results Confirm Competitive Positioning

EcoGraf assessed seven potential sites across three major regions for a commercial-scale HFfree® purification facility. The results demonstrate that EcoGraf's process technology performs competitively across a wide range of cost environments, from lower-cost Asian markets to higher-cost but strategically important North American and European hubs.

According to the company's assessment, operating costs range from approximately US$359/t to US$571/t SPG depending on location, with a base case operating cost of approximately US$478/t SPG. The fully integrated supply chain cost reaches approximately US$1,441/t on a U.S. location basis.

Cost variation is driven by local factors including energy prices, labour costs, reagent supply, and infrastructure, whilst upstream Tanzanian feedstock and midstream shaping costs remain fixed. This structure provides EcoGraf with a stable cost foundation whilst maintaining flexibility to optimise downstream location decisions based on strategic, commercial, and customer considerations.

Furthermore, the assessment confirms that EcoGraf's ability to locate HFfree® facilities close to battery manufacturing hubs does not materially compromise its cost competitiveness — a critical validation for a company targeting customers across multiple continents simultaneously.

Integrated Supply Chain Economics Deliver Strong Returns

EcoGraf's vertically integrated business model spans from graphite mining in Tanzania through to purified anode material production. The integrated cost structure illustrates how each stage contributes to the total delivered cost:

Based on a U.S. location. Excludes potential impacts of ownership structures, transfer pricing, royalties, taxes, shipping, freight, and final facility location.

Within this framework, the HFfree® purification represents the primary variable cost component across locations. EcoGraf's upstream and midstream costs remain anchored by its Tanzanian operations, providing cost stability whilst enabling location optimisation for downstream facilities.

In addition, the company notes it is currently updating the full economics of its integrated business, incorporating both upstream and midstream operations alongside the downstream HFfree® results.

Exceptional Financial Returns for Downstream Development

EcoGraf has outlined the financial returns for a representative 25,000 tpa HFfree® downstream development in the United States:

A pre-tax IRR of 42% and an NPV of US$282 million against a capital outlay of US$95 million represents a compelling return profile for a critical minerals processing project. These figures underscore the economic strength of EcoGraf's downstream strategy when combined with its integrated supply chain approach.

Understanding HFfree® Technology: A Sustainable Alternative

What is HFfree® Technology?

Traditional graphite purification for battery applications relies heavily on hydrofluoric acid (HF) — an extremely hazardous chemical that poses significant safety, environmental, and regulatory challenges. The use of HF also creates supply chain dependencies, particularly in Western markets where chemical handling regulations are stringent.

EcoGraf's HFfree® process is a patented purification technology that achieves high-purity graphite output required for lithium-ion battery anodes without using hydrofluoric acid. The thermal purification method provides both improved safety and environmental sustainability compared to conventional processing.

What Are the Commercial and Strategic Advantages?

The HFfree® technology delivers several competitive advantages:

• Regulatory Compliance: Removes key regulatory and safety risks that limit where conventional purification can be located
• Market Access: Enables EcoGraf to establish facilities within major battery manufacturing hubs in Europe and North America, where HF-based processing faces significant obstacles
• Intellectual Property Protection: Patented, proprietary technology creates a genuine competitive moat
• Environmental Credentials: Addresses growing scrutiny from battery manufacturers and automakers regarding supply chain environmental footprint

Technical Terminology Guide

Market Positioning Amid Supply Chain Transformation

Recent Chinese restrictions on the export of certain dual-use materials have intensified global focus on securing diversified, resilient, and non-Chinese critical mineral supply chains. EcoGraf's strategy to establish HFfree® process facilities across North America, Europe, and Asia-Pacific directly aligns with these structural market shifts.

The global development strategy enables several key outcomes:

• Localised Production: High-purity anode materials within major battery manufacturing hubs
• Supply Chain Security: Reduced risk and improved security of supply for customers
• Sustainable Processing: HFfree® alternative to conventional methods
• Cost Competitiveness: Competitive supply solution supporting customer focus on affordability alongside sustainability

These advantages position EcoGraf to capitalise on accelerating global investment in independent and transparent battery supply chains. Consequently, the company's ability to deliver cost-competitive solutions whilst addressing regulatory and environmental concerns creates multiple pathways to market penetration.

"The global assessment validates EcoGraf's core thesis — that its HFfree® technology can deliver high-purity spherical graphite at competitive costs across multiple geographies, underpinned by a low-cost, vertically integrated supply chain anchored in Tanzania."

Funding Progress Supports Development Timeline

EcoGraf has made substantial progress securing financial support for its development activities. The company has secured and is progressing grant funding totalling €6.2 million (approximately A$10 million) from multiple sources:

The company has submitted applications for government grant funding covering up to 60% of capital cost for proposed purification facilities across Europe and the U.S. EcoGraf continues to advance commercial discussions regarding potential strategic partnerships to support project development.

This funding progress demonstrates growing institutional recognition of EcoGraf's technology and strategic positioning within the evolving battery supply chain landscape.

Strategic Location Flexibility Creates Global Opportunities

EcoGraf's assessment confirms its ability to establish cost-competitive operations across diverse jurisdictions. Lower-cost locations such as Asia benefit from favourable operating conditions, whilst Europe and North America offer strategic proximity to key emerging markets despite higher input costs.

The company's location strategy balances cost optimisation with market access, supply chain security, and customer requirements for localised production. Development options remain under consideration across the U.S., Europe, and Asia-Pacific, including hybrid configurations to optimise overall delivered cost.

This flexible approach enables EcoGraf to leverage its low-cost upstream and midstream platform whilst supporting a scalable and globally competitive anode materials business aligned to growing ex-China demand.

Near-Term Development Priorities

EcoGraf has outlined clear next steps that will serve as key progress indicators:

The company is evaluating various facility configurations and partnership structures to optimise capital efficiency and market positioning across its target geographies.

Investment Case Strengthened by Global Assessment

The global cost assessment adds substantial validation to EcoGraf's investment proposition across three powerful themes: critical minerals security, battery technology supply chains, and supply chain diversification. The EcoGraf HFfree process cost competitiveness for battery graphite supply chain operations has, furthermore, been independently confirmed across multiple global locations, reinforcing the strength of its commercial case.

Key Investment Pillars

• Proprietary Technology: HFfree® process provides patented differentiation enabling access to Western markets where conventional HF-based purification faces barriers
• Integrated Cost Structure: Vertical integration from Tanzanian graphite mining to purified anode material creates competitive economics of approximately US$1,441/t
• Strong Project Returns: Pre-tax IRR of 42% and NPV of US$282 million on US$95 million capital investment demonstrates attractive project-level economics
• Global Flexibility: Validated operations across Asia, Europe, and U.S. provide optionality to follow customer demand and capitalise on regional incentives
• Funding Momentum: €6.2 million in grant funding secured and progressing, with applications for substantial capex coverage submitted
• Structural Market Opportunity: Growing imperative to establish non-Chinese battery supply chains creates durable demand for EcoGraf's offering

The assessment confirms EcoGraf's positioning as a technologically differentiated and commercially credible participant in the global transition toward supply chain independence in battery materials. With validated integrated costs, strong project-level returns, and advancing funding discussions, the company has systematically de-risked its path to commercial production whilst maintaining strategic flexibility across multiple high-value markets.

Want to Learn More About EcoGraf's Global Battery Graphite Strategy?

EcoGraf (ASX: EGR) is advancing a patented, cost-competitive battery graphite supply chain with validated economics across multiple global locations, strong project-level returns, and growing institutional funding support. For investors seeking exposure to a technologically differentiated, vertically integrated critical minerals company positioned at the heart of the non-Chinese battery supply chain transition, visit www.ecograf.com.au to explore the full details of EcoGraf's projects, technology, and development pipeline.