Falcon Energy Validates $86M Morocco Graphite Plant with Strong Economics

Falcon Energy Materials plc (TSX-V: FLCN, OTCQB: FLCNF) has announced highly positive results from a comprehensive technical-economic study for its planned natural graphite spheroidization, purification and coating facility in Morocco. The study, prepared by Dorfner Anzaplan UK Limited (Anzaplan) to AACE Class 3 standards, validates Falcon's vision to become a low-cost producer of coated, spheroidized and purified graphite (CSPG) at industrial scale. Key financial metrics revealed include initial capital costs of US$86 million, operating costs of US$3,168 per tonne of CSPG, and target annual production of 26,000 tonnes of CSPG alongside 19,000 tonnes of fines. CEO Matthieu Bos emphasized that this study confirms Falcon's approach as "the most credible path to producing high-quality, low-cost CSPG at industrial scale," positioning the company to address critical gaps in the battery materials supply chain for Western manufacturers.

The Anode Plant's strategic design leverages advanced technology through a partnership with an experienced Chinese CSPG producer, enabling Falcon to benefit from proven designs, established procurement chains, and recent process efficiencies. The facility will feature three integrated processing plants: a spheroidization plant using latest processes to shape graphite flakes into spheres (producing SG18 and SG8 particle sizes), a purification plant utilizing hydrofluoric acid alongside hydrochloric and nitric acids to achieve >99.95% purity, and a coating plant applying amorphous carbon coating to enhance battery performance. Located in Jorf Lasfar, Morocco, the five-hectare facility benefits from strategic access to port infrastructure, energy resources, and free trade agreements with both the United States and European Union, positioning it ideally to serve rapidly growing North American and European battery markets.

Falcon is progressing aggressively with next steps, including commencing the environmental impact assessment expected for completion in H1 2026 and advancing detailed engineering for the innovative "Super Building" design. Construction of a pilot plant remains on track for Q4 2025 completion, with first CSPG samples for customer testing expected in the same quarter. These samples are crucial for securing long-term offtake agreements, with testing already underway with several potential customers. The company targets first production in H2 2027 following a 9-month detailed engineering period and 15-month construction phase. With current consensus CSPG pricing at US$8,300 per tonne and advanced environmental treatment systems ensuring compliance with Moroccan standards, Falcon aims to become the premier provider of natural CSPG through its strategic partnerships and technological advantages. For additional information, visit Falcon's website at www.falconem.net.