Graphjet Technology’s Malaysian Plant to Transform Agriculture Waste into Graphite and Graphene

By Staff Writer

Graphjet Technology has set into motion the swift development of its manufacturing plant in Malaysia. By the end of the second quarter of 2024, the facility, located within the Kuantan district of Pahang State, is slated for commissioning. This expedited timeline signifies an impressive stride toward meeting the production and revenue goals set for that year. The Malaysian plant will carry out the transformation of agriculture waste into sizable quantities of graphite and graphene, embodying a strategic pivot towards renewable resources, especially considering the exponentially rising demand for these materials.

Focusing on environmental efficiency, the plant plans to utilize up to 9,000 tonnes of palm kernels annually, transforming this agricultural byproduct into up to 3,000 tonnes of graphite. This innovative pivot not only resolves waste disposal concerns but turns a stagnant byproduct into valuable graphite.

Furthermore, ambitions are already in sight to scale this production to 13,000 tonnes by the latter half of 2026.

Graphjet’s development is expected to stimulate the local economy as the facility has created roughly 200 new jobs. The plant takes up a considerable footprint, spanning over 91,000 square feet. The sense of anticipation is palpable in the region as Graphjet is firmly positioned to become a crucial player within the graphite and graphene production sector, leading to future expansions and operational advancements.

In the face of China’s decision to cut back on its graphite exports, the challenge for alternative sources has intensified. Graphjet Technology emerges as a pivotal solution for the global supply chain, with prospective roles in sufficing the requirements for graphite that have been disrupted due to these new regulations.

Graphjet’s efforts ride alongside a growing need for diversification of graphite sources in the United States, a country with no active domestic graphite manufacturers of its own. This endeavor positions Graphjet not only as a strategic supplier but also as a frontrunner potentially reshaping the reliance patterns on foreign resources.

Graphjet’s trajectory is further substantiated by financials, with the venture’s value approximated at $1.49 billion, presenting significant upscaling prospects in the global market. Forecasters point to an escalation in the market size for graphite, seeing it swell from $17.5 billion in 2022 to an anticipated $25 billion by 2027.

Graphjet’s model is predicated on sustainability. Utilizing palm kernel shells — abundant byproducts of the palm oil industry — serves not only to leverage waste but also circulates new life into the local agricultural economy. The innovative process can be described as a circular solution, addressing both environmental and industrial demands.

The technology brings forth up to an 83% reduction in the carbon footprint when juxtaposed against traditional graphite production methods. Similarly, costs are projected to plummet by up to 80%, making it not just an environmentally superior option, but financially prudent as well.

Graphjet has capitalized on its commercial and patented technology, translating agricultural waste into graphite and subsequently, the conversion of graphite into graphene, the latter known for its superiority in conductivity and strength and touted as the “black gold” for modern materials.

Backed by strategic partnerships, notably a $30 million offtake agreement with Toyoda, Graphjet ensures a steady demand for its production line. This agreement underpins Graphjet’s foothold in the market, asserting confidence from significant industry players.

The outlook on the global graphite market features robust growth, mirroring Graphjet Technology’s anticipated expansion and market penetration. Graphite’s indispensability in various industries, including battery storage and semiconductors, forecast a bright future for companies like Graphjet, who are well-placed to capitalize on this trend.

Post its proposed business combination with Energem Corp., Graphjet Technology is looking ahead to a NASDAQ listing under the ticker “GTI” and is expected to close on or about March 6, 2024.