Falcon Energy Materials has confirmed robust economics for its planned natural graphite processing facility in Morocco through a comprehensive technical-economic study, revealing an $86 million initial capital investment and targeting first production in the second half of 2027. The study, prepared to Association for the Advancement of Cost Engineering Class 3 standards by Dorfner Anzaplan UK Limited, demonstrates Falcon's potential to become a low-cost producer of coated, spheroidized and purified graphite at industrial scale with target annual production of 26,000 tonnes of CSPG and 19,000 tonnes of fines.
The significance of this development lies in addressing critical gaps in the battery materials supply chain for Western manufacturers. With operating costs estimated at $3,168 per tonne of CSPG and current consensus pricing at $8,300 per tonne, the project demonstrates strong financial fundamentals while providing Western battery manufacturers with a reliable, compliant alternative to current supply sources. This comes at a time when electric vehicle adoption and energy storage demand are driving unprecedented need for battery anode materials.
Falcon's strategic partnership with an experienced Chinese CSPG producer provides crucial technological advantages. The partnership leverages proven design, procurement and supply chain expertise from a recently completed large-scale anode plant in China, enabling Falcon to establish a highly competitive facility in Morocco. This technological transfer represents a significant step in building Western battery material production capacity independent of dominant Asian suppliers.
The Anode Plant design incorporates advanced processing technology across three key areas. The spheroidization plant uses latest processes to shape graphite flakes into spheres, increasing surface area and energy density to produce spherical graphite. The purification plant employs hydrofluoric acid alongside hydrochloric and nitric acids to remove impurities, producing material with purity exceeding 99.95%. The coating plant applies amorphous carbon coating using pitch tar to enhance energy density and increase battery safety and longevity.
Location advantages in Jorf Lasfar, Morocco provide strategic benefits including access to key port and energy infrastructure and eligibility under free trade agreements with both the United States and European Union. The facility will occupy approximately five hectares and feature a single Super Building design to optimize operational efficiencies. Environmental considerations are addressed through advanced gas and water treatment systems designed to meet Moroccan standards, with gas scrubbers neutralizing off-gasses using hydrated lime and water treatment capacity for 432,000 tonnes annually.
Current project timeline includes completion of environmental impact assessment in the first half of 2026, with construction permits applied for in parallel. Detailed engineering of the Super Building, Anode Plant flow sheet and ancillary infrastructure will proceed concurrently. The pilot plant construction remains on track for completion in the fourth quarter of 2025, with first CSPG samples available 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.
The project's advancement represents a meaningful step toward establishing Western battery material independence at a time when supply chain security has become a strategic priority for both North American and European markets. With graphite being a critical component in lithium-ion batteries essential for electric vehicles and energy storage systems, Falcon's progress toward industrial-scale production addresses growing concerns about material availability and geopolitical supply risks. The company's commitment to operating in compliance with highest international standards for safety, environmental sustainability and social responsibility further strengthens the project's positioning in increasingly regulated global markets.
