Falcon Energy Materials sees $1.1 billion value from Morocco anode plant project

UAE-based Falcon Energy Materials plc has unveiled that its proposed graphite processing facility in Morocco has shows the potential to generate an impressive $1.149 billion in value over its lifetime.

With an after-tax Internal Rate of Return (IRR) of 82%, the project is positioned to be a major player in the rapidly growing market for battery materials, showed the results of a Preliminary Economic Assessment (PEA) for the project.

In addition to its strong financial outlook, the plant is expected to generate approximately $246 million in annual revenue and $152 million in operating cash flow at current CSPG pricing. Falcon anticipates a payback period of just one year.

Looking forward, Falcon and Hensen are moving ahead with a detailed feasibility study, which is expected to be completed by mid-2025. This study will support the permitting process in Morocco and include environmental impact assessments necessary for project approval.

The PEA, prepared by Dorfner Anzaplan UK Limited, highlights that Falcon’s Morocco-based plant will produce coated, spheroidized, and purified graphite (CSPG)—a key material for lithium-ion batteries.

With an initial capital investment of $73 million, the facility is expected to produce 26,000 tonnes of CSPG per year, with operating costs of just $3,193 per tonne, making it a highly competitive project within the global battery supply chain.

Falcon’s CEO, Matthieu Bos, emphasized the significance of the project’s strong economic potential, stating, The robust results from this PEA confirm Falcon’s ability to provide high-quality, low-cost battery materials for key markets in Europe and North America. With a projected NPV of $1.149 billion and an 82% IRR, this facility represents a strategic step forward in securing a sustainable supply of critical materials for the energy transition.”

The project will benefit from a unique strategic partnership with Hensen Graphite & Carbon Corporation, a leading producer of CSPG with significant experience in graphite anode manufacturing. Hensen’s expertise, especially from its large-scale operations in China, has helped shape the design and operational strategy for the Morocco plant, allowing Falcon to leverage proven technology and cost-efficient production methods.

Located in Morocco, the facility will be positioned to take advantage of key infrastructure, including port access and energy resources, and will benefit from Morocco’s free trade agreements with both the United States and the European Union.

Falcon plans to source feedstock from its 100%-owned Lola Graphite Project in Guinea, along with third-party concentrates, ensuring a steady supply of material for production.

“With this project, Falcon is positioned to become a key supplier of anode materials for the global battery market, delivering sustainable, high-quality products while maintaining strong environmental and social standards,” said Bos.

Falcon Energy Materials is focused on developing its Lola Graphite Project in Guinea, aiming to build a fully integrated supply chain for the production of battery materials to serve the European and North American electric vehicle and energy storage markets.

The post Falcon Energy Materials sees $1.1 billion value from Morocco anode plant project appeared first on HESPRESS English – Morocco News.

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