Falcon Energy Materials Confirms Strong Economics for Morocco Anode Plant With US$86 Million Initial Investment

Falcon Energy Materials plc has confirmed robust economics for its planned natural graphite anode production facility in Morocco through a comprehensive technical-economic study. The study, prepared to AACE Class 3 standards 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.

The anode plant targets annual production of 26,000 tonnes of CSPG alongside 19,000 tonnes of fines byproduct. Initial capital costs, including contingency, are estimated at US$86 million, with operating costs projected at US$3,168 per tonne of CSPG. First production is targeted for the second half of 2027 following a 9-month detailed engineering period and 15-month construction phase.

Matthieu Bos, Chief Executive Officer of Falcon, stated that the technical study validates the company'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 Morocco facility benefits from a strategic partnership with an established CSPG producer that recently commissioned a large-scale anode plant in China. This technical partnership enables Falcon to leverage proven design, procurement chains and process efficiencies from the recently completed plant, establishing a highly competitive facility in Morocco. The partnership supports Falcon's ability to deliver high-quality anode material at scale to rapidly growing European and North American markets.

The anode plant design incorporates three key processing stages. The spheroidization plant uses advanced 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 spherical purified graphite with purity exceeding 99.95%. The final coating plant applies an amorphous carbon coating using pitch tar to enhance energy density and increase battery safety and longevity.

Strategically located in Jorf Lasfar, Morocco, the facility will occupy approximately five hectares and benefit from access to key port and energy infrastructure. The location also provides advantages under free trade agreements with both the United States and European Union. Falcon plans to construct a single "Super Building" to optimize plant footprint and operational efficiencies.

The technical study indicates strong financial fundamentals with current consensus long-term CSPG pricing at US$8,300 per tonne for the proposed product mix of SG18 and SG8 spherical graphite products. The company has commenced environmental impact assessment work expected for completion in the first half of 2026, running parallel with permit applications and detailed engineering work.

Construction of a pilot plant at Jorf Lasfar 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. Preliminary feedback on sample quality is anticipated in the fourth quarter of 2025.

The project incorporates advanced environmental systems including gas scrubbers that neutralize off-gasses using hydrated lime and water treatment systems capable of processing 432,000 tonnes annually. These systems ensure compliance with Moroccan environmental standards and discharge limits. For additional information about the company's progress, visit https://www.falconem.net.

This development represents a significant step in establishing Western supply chains for critical battery materials, reducing dependence on existing production centers and supporting the growing electric vehicle and energy storage markets in Europe and North America.