Falcon Energy Materials Advances Moroccan Graphite Plant with $86 Million Investment Targeting 2027 Production

Falcon Energy Materials has confirmed robust economics for its planned natural graphite processing facility in Morocco, with an initial capital investment of $86 million and first production targeted for the second half of 2027. The technical-economic study prepared by Dorfner Anzaplan UK Limited demonstrates the company's path to becoming 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 project's importance 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 facility represents a strategic move to establish reliable, compliant anode material production outside of China. This development comes as European and North American markets face increasing pressure to secure domestic battery material supplies for the growing electric vehicle industry.

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 is leveraging advanced technology and procurement expertise through a strategic partnership with a leading CSPG producer that recently successfully built and commissioned a large-scale anode plant in China. This partnership enables Falcon to benefit from established technology and supply chains while adapting the proven design for the Moroccan facility.

The anode plant design incorporates three key processing stages: spheroidization to shape graphite flakes into spheres increasing surface area and energy density, purification using hydrofluoric acid alongside hydrochloric and nitric acids to achieve 99.95% purity, and coating with amorphous carbon to enhance battery safety and longevity. The facility will be strategically located in Jorf Lasfar, Morocco, benefiting from access to key port infrastructure and free trade agreements with both the United States and European Union.

Falcon has tested several high-quality graphite concentrates that can serve as feedstock, with options including material from China, other international producers, and the company's own Lola Graphite Project once in production. The technical study indicates the spheroidization plant will achieve 60% yield, producing 28,000 tonnes annually of spherical graphite in two size categories: SG18 (18 microns) representing 80% of production and SG8 (8 microns) representing 20%.

The company has commenced the environmental impact assessment expected for completion in the first half of 2026, with construction permits being applied for in parallel. 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 around the same time. These samples are instrumental in securing long-term offtake agreements, with testing already commenced with several potential customers.

The project timeline includes a 9-month detailed engineering and design period followed by 15 months of construction and commissioning. The facility will incorporate advanced gas and water treatment systems to meet Moroccan environmental standards, with gas scrubbers neutralizing off-gasses using hydrated lime and water treatment capacity for 432,000 tonnes annually. For additional information about the company's progress, visit https://www.falconem.net.

This development represents a significant step in establishing Western battery material supply chains independent of Chinese dominance. The successful implementation could provide European and North American electric vehicle manufacturers with a reliable source of high-quality anode materials, reducing supply chain vulnerabilities and supporting the global transition to electric transportation. The project's strategic location and free trade access position it to capitalize on growing demand for battery materials while addressing geopolitical supply concerns.