Zentek's Albany Graphite Secures $500,000 Grant for EV Battery Materials

Zentek subsidiary Albany Graphite Corp. secured a $500,000 grant from Ontario's Critical Minerals Innovation Fund for a graphite purification and anode development project. The project aims to produce high-purity graphite without chlorine gas and positions Albany Graphite Corp. in North America's growing EV battery supply chain. Preliminary tests have achieved a five-nines purity level, with the potential to recover valuable Rare Earth Elements as by-products.

Zentek (NASDAQ:ZTEK) has announced that its subsidiary, Albany Graphite Corp. (AGC), has been awarded a $500,000 grant from Ontario's Critical Minerals Innovation Fund for a graphite purification and anode development project. The grant aims to advance AGC's efforts in producing high-purity graphite without the use of chlorine gas, positioning the company within North America's growing electric vehicle (EV) battery supply chain.

The project, which includes a $314,500 contribution from AGC and $200,000 in-kind support from Natural Resources Canada, aims to produce 5-6 tonnes of flotation concentrate. Preliminary testing has already achieved a five-nines purity level of 99.9991%, marking a significant milestone for AGC. This purity level is notable as it was achieved without the use of chlorine or halogen gases, which are typically required for such ultra-high purity levels.

The project also aims to recover valuable Rare Earth Elements (REEs) as by-products, further enhancing its potential value. The electrothermal fluidized bed reactor (FBR) purification method being tested represents cutting-edge processing technology.

The $500,000 grant from the Ontario Critical Minerals Innovation Fund is a significant validation for Zentek's Albany Graphite project. The total project funding of approximately $1 million includes Zentek's $314,500 contribution and NRCan's $200,000 in-kind support. This funding will enable AGC to scale up its purification process and produce larger volumes of ultra-high purity graphite material, which will be supplied to Original Equipment Manufacturers (OEMs) and end users for qualification testing.

The project's focus on producing 5-6 tonnes of flotation concentrate is a crucial step towards commercial production. The results from this testwork will inform upcoming technical studies, including an updated Preliminary Economic Assessment and a subsequent Pre-Feasibility Study. These studies will provide essential valuation metrics and engineering data that determine the project's economic viability and potential return on investment.

The project's dual application targeting both battery materials and nuclear applications diversifies potential revenue streams. The strategic positioning of AGC within the graphite value chain, focusing on producing battery-ready anode material, aligns with the significant investment currently flowing into North American battery supply chains.

For investors, the most significant aspect of this announcement is the potential for the project's results to directly inform upcoming technical studies, providing essential valuation metrics and engineering data. This could significantly enhance the project's investment potential.

References:
[1] https://www.stocktitan.net/news/ZTEK/zentek-subsidiary-albany-graphite-corp-awarded-500-000-critical-g5pb7kwj23r4.html