Has Graphex Group (GRFX) Stock Risen After-Hours Session For A Reason?

Shares of the major graphite supplier Graphex Group Limited (NYSE: GRFX) were up 13.46% at $1.18 as of the most recent after-hours check. There may be some grounds to think that recent events will provide more information about the GRFX as the stock of GRFX surged in the absence of recent news.

What has occurred recently?

The Jixi Mashan Government and Graphex Group (GRFX) announced last month that they had reached an agreement on the construction of a new manufacturing facility in the Jixi (Mashan) Graphite Industrial Park (the “Project”). With the establishment of a facility for deep processing and manufacture of graphite, the deal will enable Graphex Group to boost its yearly output of graphite.

  • In Phase I of the Project, the new site is expected to produce 20,000 metric tons of high-purity spherical graphite, and in Phase II of the Project, 10,000 metric tones of high-purity spherical graphite and 10,000 metric tons of battery anode materials.
  • The new facility for Phase I of the Project will include five workshops totaling 270,000 square feet, an office building, and living quarters for the workers inside the Jixi (Mashan) Graphite Industrial Park.
  • Over the course of the following three years, the Project will be implemented.
  • In accordance with the MOU, the Jixi Mashan Government will provide GRFX the right to acquire the industrial property and will supply green electricity for the facility’s operation, including wind and solar energy.
  • According to GRFX, the combined annual demand for graphite anode material capacity to supply EV battery gigafactories in the U.S., Europe, and China will be over 4 million tons by 2030, which represents a 10X increase over the demand today, based on industry reports including Benchmark Mineral Intelligence.

How will GRFX’s growth be aided by worldwide demand?

The demand for graphite is rising steadily across the world, and GRFX’s new manufacturing facilities in the U.S., China, and eventually Europe will guarantee that it can provide a long-term consistent supply of high-quality materials that are essential to the EV ecosystem. Expanding its production capacities in Jixi and Warren, Michigan, respectively, is another step in GRFX’s strategic objective to deliver essential assistance to the EV sector as and when required. The growth of our current activities is well supported because China is a solid and growing source of revenue for us and has a well-established EV manufacturing industry. Additionally, the demand for graphite is reaching 200,000 tons per year simply to supply the gigafactories that have been declared so far as the EV sector in the U.S. keeps growing.

How has GRFX been gaining traction?

Graphex Group (GRFX) has also created Graphex (Heilongjiang) New Energy Technologies Company Limited in Jixi City as part of the agreement to carry out the proposed manufacturing facility. Starting in 2023, the new facility will enable GRFX to progressively raise its annual production capacity in China to 40,000 tons of high-purity spherical graphite and 10,000 tons of battery anode materials.

Most Popular