Falcon Energy Materials Confirms Strong Economics for Moroccan Graphite Anode Plant with $86 Million Initial Investment

Falcon Energy Materials plc has announced positive results from a technical-economic study for its natural graphite spheroidization, purification and coating plant in Morocco, confirming robust financial fundamentals for the project. The study, prepared to Association for the Advancement of Cost Engineering Class 3 standards by Dorfner Anzaplan UK Limited, demonstrates Falcon's path to becoming a low-cost producer of coated, spheroidized and purified graphite at industrial scale. The project targets annual production of 26,000 tonnes of CSPG with initial capital costs estimated at $86 million and operating costs of $3,168 per tonne.

Chief Executive Officer Matthieu Bos stated that the technical study validates Falcon's approach as the most credible path to producing high-quality, low-cost CSPG at industrial scale. The company aims to close critical gaps in the battery materials supply chain and deliver essential anode materials to Western manufacturers through a reliable, compliant source. The anode plant in Morocco benefits from a strategic partnership with a leading CSPG producer with extensive experience building and operating both synthetic and natural graphite anode plants in China.

The technical partner recently successfully built and commissioned a large-scale anode plant in China, and Falcon is leveraging proven design, procurement and supply chain expertise from this facility to establish a highly competitive operation in Morocco. This partnership enables Falcon to utilize established technology, procurement chains and recent process efficiencies to deliver high-quality anode material at competitive costs to rapidly growing European and North American markets. The plant design incorporates three main components: spheroidization using latest processes to shape graphite flakes into spheres, purification using hydrofluoric acid alongside hydrochloric and nitric acids to achieve 99.95% purity, and coating with amorphous carbon to enhance energy density and battery safety.

Strategically located in Jorf Lasfar, Morocco, the facility will occupy approximately five hectares and benefit from access to key port and energy infrastructure along with free trade agreements with both the United States and European Union. Falcon contemplates constructing a single Super Building to optimize plant footprint and operational efficiencies. The company has tested several high-quality graphite concentrates that can serve as feedstock, with abundant material available from China, other international producers, and Falcon's own Lola Graphite Project once in production.

The spheroidization plant achieves 60% yield producing 28,000 tonnes per year of spherical graphite, while the purification plant increases purity from 95% to 99.95%. The coating process applies a thin carbon film using pitch tar as carbon precursor. The facility incorporates advanced gas and water treatment systems meeting Moroccan environmental standards, with gas scrubbers neutralizing off-gasses using hydrated lime and water treatment handling 432,000 tonnes annually before discharge to local sewage networks.

Current consensus long-term CSPG pricing stands at $8,300 per tonne for the proposed product mix. The company expects a 9-month detailed engineering period followed by 15-month construction and commissioning, targeting first production in the second half of 2027. Falcon has commenced environmental impact assessment work expected for completion in the first half of 2026, required for obtaining construction permits. Construction of a pilot plant at Jorf Lasfar remains on track for completion in the fourth quarter of 2025, with first CSPG samples for customer testing expected in the same quarter. These samples are instrumental in securing long-term offtake agreements, with testing already commenced with several potential customers.