Evion's India Joint Venture to Ship First Expandable Graphite Order

Evion Group Graphite

Australian graphite producer Evion has announced that its joint venture with Indian producer Metachem Manufacturing in Pune, India, is set to ship its first order of expandable graphite this month. This marks a significant milestone for the partnership and the Indian graphite market.

First Order and Production Details

The joint venture's initial order, a substantial 386 tonnes, is destined for German trading firm Technografit. Production of this order was slated to take place between January and March.  Prior to scheduled maintenance in late December, approximately 120 tonnes of the order was produced or "partially treated" from early November to mid-December. 

Evion has confirmed that the order is on track for completion and will be shipped to Europe over the coming months.  The sale price for this initial shipment averaged between $3,000 and $3,300 per tonne on a free-on-board (FOB) basis, while the joint venture anticipates production costs ranging from $1,500 to $1,750 per tonne. This healthy margin demonstrates the potential profitability of the venture.

Future Production and Expansion Plans

Evion also revealed that the joint venture has secured 500 tonnes of graphite concentrate on-site, ready for processing. This material is planned for export between April and September, primarily to European markets.  The company anticipates sales prices to be roughly 10% higher during this period.  Evion plans to provide further production guidance within the first quarter of the year, including details on new sales and buyers. 

The joint venture expects to sell over 2,000 tonnes of expandable graphite during its first full year of operations, having commenced production in April 2024.  Looking ahead, both companies are considering expanding the plant's capacity to 4,000 tonnes per year.  The original agreement establishing the joint venture had projected a production capacity of 2,000 to 2,500 tonnes per year for the initial three years. This potential expansion signals the partners' confidence in the market and their commitment to growth.