The Ecograf Ltd (ASX: EGR) share price enjoyed strong gains last month following a series of positive announcements from the graphite producer.
However, the share price is falling slightly this afternoon and is trading at 84 cents, down 1.18%.
What happened in August for EcoGraf?
The first update came in early August regarding the company evaluating an industrial site in Sweden to build a battery anode materials facility.
EcoGraf advised that the Skelleftea location benefits from ample clean and renewable energy and it has the lowest industrial power costs in Europe.
A detailed evaluation is currently underway for the 65,000 sqm industrial site.
The second update came in the middle of the month, announcing the completion of EcoGraf’s Engineering Scoping Study.
The concept design looked at a modular recycling pilot plant to recover carbon battery anode materials. Building such a facility would cost an estimated $5.8 million.
The company is developing work programs with potential partners to support the construction of the plant.
In late August, EcoGraf also updated the market on its progress with key sustainability activities. This is in relation to its new Australian Battery Anode Material facility. As such, this includes:
- Zero-waste operating strategy with the aim of using 100% of feedstock through product innovation and development
- Engineered water processing solutions to treat and recycle Kwinana-Rockingham wastewater and achieve a 75% reduction in water usage
- Adoption of renewable energy content within the Kwinana-Rockingham Industrial zone
- Lowering the carbon emissions footprint through the development of Life Cycle Assessment models.
The battery anode material facility in Western Australia will be the first of its kind to be built outside China. The plant will provide the supply of purified spherical graphite for the lithium-ion battery market.
EcoGraf share price summary
Over the past 12 months, the EcoGraf share price has soared 827% higher, with year-to-date growth of 391%.
The EcoGraf share price reached a 52-week high of $1.10 in February before profit-takers swooped in.
EcoGraf has a market capitalisation of $375.6 million, with approximately 450 million shares on its registry.
The post Why the EcoGraf (ASX:EGR) share price leapt 16% in August appeared first on The Motley Fool Australia.
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More reading
- What do the best performing ASX shares this year have in common?
- Why the EcoGraf (ASX:EGR) share price has soared 50% in a month
- Why the EcoGraf (ASX:EGR) share price is up 11% on Wednesday
- EcoGraf (ASX:EGR) share price powers 10% ahead on industrial site news
Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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