Under the terms of the agreement thyssenkrupp has been appointed the exclusive representative and distributor of Elcora’s high purity (greater than 96% purity) graphite production for the territory covering the European Union (EU 28), Russia, Turkey, USA and Canada. thyssenkrupp has been provided the right to purchase 50% of the vein graphite or other graphite produced by Elcora during the term of the agreement.
Troy Grant, President and CEO of Elcora Advanced Materials Corp. (TSXV: ERA) (FSE: ELM) (OTCQB: ECORF), (the “Company” or “Elcora”), announced that Elcora and its joint venture partner Sakura Graphite (PVT) Ltd. (“Sakura”) have entered into a 10 year exclusive distribution agreement with thyssenkrupp Metallurgical Products (“thyssenkrupp”).
Under the terms of the agreement thyssenkrupp undertakes to market 9,000 mt p.a. (50% of the estimated 18,000 mt p.a.) by year 5 of the agreement. thyssenkrupp has the option to renew the agreement for an additional 5 years from the initial 10-year period. The high purity graphite is anticipated to be sold to end users in the lithium ion battery market and for other high end technology applications.
thyssenkrupp Group has identified the opportunity to supply key customers with high purity graphite through their metallurgical products division which complements its existing sales of chromite, bauxite and refractory grade graphite.
Stephan Hanel, Chief Operating Officer of thyssenkrupp Metallurgical Products, says: “This partnership with Elcora and Sakura is extremely attractive for us and represents an ideal addition to our portfolio. We are confident that acting as a distributor for this high-quality graphite will enable us to grow our market share, in particular in the forward-looking technology sector.”
Troy Grant, Chief Executive Officer of Elcora and Sakura, adds: “We are extremely pleased today to announce this newly formed partnership with thyssenkrupp. The Company’s Metallurgical Products Division serves some of the world’s leading manufactures with industrial minerals. Through this exclusive arrangement, Elcora will be supplying the highest grade of graphite material available anywhere in the world to market leaders developing technologies that will power our future. We are grateful for this opportunity.”
