Falcon Energy Materials plc (TSX-V: FLCN) (OTCQB:FLCNF) has released the results of a technical-economic study for its natural graphite spheroidization, purification and coating plant (the “Anode Plant”) in Morocco, demonstrating robust financial and operational fundamentals. The study, prepared to AACE Class 3 standards by Dorfner Anzaplan UK Limited, estimates initial capital costs of US$86 million and operating costs of US$3,168 per tonne of coated, spheroidized and purified graphite (CSPG). The company targets first production in the second half of 2027.
The Anode Plant will have an annual production capacity of 26,000 tonnes of CSPG and 19,000 tonnes of fines. The technical study leverages a strategic partnership with a leading CSPG producer (the “Technical Partner”) that recently built and commissioned a large-scale anode plant in China. This partnership enables Falcon to utilize proven technology, procurement chains and process efficiencies to establish a highly competitive facility in Morocco, targeting the rapidly growing European and North American markets.
The plant design includes three main stages: spheroidization to shape graphite flakes into spheres, purification using hydrofluoric, hydrochloric and nitric acids to achieve >99.95% purity, and coating with pitch tar to enhance energy density and battery safety. The facility will be located in Jorf Lasfar, Morocco, benefiting from access to port and energy infrastructure and free trade agreements with the United States and European Union. A single “Super Building” will optimize footprint and operational efficiencies.
Capital costs are estimated at US$86 million, including contingency, with accuracy ranging from -15% to +20%. Operating costs are projected at US$3,168 per tonne of CSPG, based on the Technical Partner’s actual plant costs adjusted for Moroccan logistics and construction. The economic analysis assumes a long-term CSPG price of US$8,300 per tonne for the product mix of SG18 and SG8. The company expects a 9-month detailed engineering period followed by 15 months of construction and commissioning.
Falcon has commenced an environmental impact assessment (EIA) for the Anode Plant, expected to be completed in H1 2026, and is applying for construction permits in parallel. Meanwhile, construction of a pilot plant at Jorf Lasfar remains on track for completion in Q4 2025, with first CSPG samples for customer testing expected as early as Q4 2025. Testing with potential customers has started, with preliminary feedback on sample quality expected in Q4 2025, which will be instrumental in securing long-term offtake agreements.
The company has tested several high-quality graphite concentrates as feedstock, sourced from China, other international producers and its own Lola Graphite Project once in production. The Anode Plant will incorporate advanced gas and water treatment systems to meet Moroccan environmental standards.
Matthieu Bos, CEO of Falcon, stated, “This Technical Study validates our vision - it confirms that Falcon’s approach is the most credible path to producing high-quality, low-cost CSPG at industrial scale. We are now moving decisively to close the critical gaps in the battery materials supply chain and to deliver essential anode materials to Western manufacturers and end-users through a reliable, compliant and qualified source.”
Falcon Energy Materials is aiming to become a premier provider of natural CSPG for energy storage solutions, strategically partnered with leading Chinese technology firms and Tier One Moroccan partners. For additional information, visit Falcon’s website at www.falconem.net.
