Volt Resources (ASX:VRC) is strengthening its graphite purification process, anticipating robust economic returns from its Alabama Graphite Refinery project in the US. A recent Scoping Study projects a pre-tax net present value of US$136 million and an internal rate of return of 58%. The refinery anticipates average annual earnings before interest, taxes, depreciation, and amortisation of US$38 million over a 21-year operational span. The initial capital cost is forecasted at a low US$21 million, with a total capital cost of US$57 million.
The graphite refinery will be developed in three stages, aiming for an annual production of 12,000 tonnes of high-purity graphite by 2028, and ultra-high-purity graphite thereafter. Further expansion, requiring an additional US$18.6 million and US$17.7 million in capital expenditure, is projected to escalate annual production to 30,000 tonnes by 2031 and 48,000 tonnes by 2035, respectively. Volt, currently valued at a market capitalization of $18.73 million, is focusing on executing a detailed development pathway, optimizing the purification process via a planned pilot plant and associated testing.
A final investment decision hinges on additional test work, pilot plant production outcomes, comprehensive studies, offtake agreements, regulatory approvals, and secured financing. Volt intends to engage with potential offtake partners, pursue government support, and evaluate funding avenues as it advances project development. Potential funding sources include US Government initiatives, the Export-Import Bank, state government funding, and customer pre-payments, alongside capital raisings and debt financing. With projected battery production needing substantial graphite quantities, Volt aims to be a low-cost producer for industrial and battery sectors.
