EcoGraf Secures 40,000 tpa Epanko Graphite Offtake with German Partner

EcoGraf Doubles European Offtake to 40,000 tpa as German Partner Backs Epanko Expansion

EcoGraf Limited (ASX: EGR) has signed a binding term sheet with a major German graphite trader that lifts planned purchases from the Epanko Graphite Project in Tanzania to 40,000 tonnes per annum (tpa) over time, up from an initial 20,000 tpa at production start. According to the ASX announcement dated 12 August 2026, the agreement runs for 10 years and includes a step-up after the first five years, adding greater sales visibility as the company advances project financing for Epanko.

The update is material because it replaces an earlier agreement and strengthens EcoGraf's contracted sales base into Europe before first production. It also introduces a floor price within the pricing structure, a feature that can matter in financing discussions because it may provide some protection if graphite prices weaken.

"The increase in volume is an independent endorsement of the quality and commercial appeal of graphite at the Epanko deposit to customers in Europe," EcoGraf stated in its ASX release.

What Has Been Agreed

The company said the binding term sheet constitutes a preliminary offtake agreement, known under German law as a Vorvertrag. In practical terms, that means the parties have agreed the main commercial terms and have committed to negotiate the full long-form agreement, subject to customary conditions precedent and project financing requirements.

The new arrangement covers natural flake graphite products from Epanko and is structured to begin at 20,000 tpa from commencement of production. After the initial five years, volumes are planned to increase to 40,000 tpa.

Below are the principal terms disclosed in the announcement:

Pricing is based on a market reference price, adjusted for product characteristics such as flake size and carbon grade. This matters because larger flake graphite and higher carbon content can attract better pricing in specialist industrial markets.

The agreement is on an FOB basis from the Port of Dar es Salaam. FOB, or Free on Board, means the seller is responsible for delivering and loading the product onto the buyer's nominated vessel at the named port, with risk transferring at that point.

EcoGraf's European Offtake Position

The new term sheet adds to EcoGraf's existing binding offtake agreement with tk accelis Trading GmbH, formerly ThyssenKrupp Metallurgical Products GmbH, for 20,000 tpa. According to the company, that means EcoGraf has now secured 40,000 tpa of contracted sales into Europe at the initial level, before any step-up under the new German trader agreement.

At the later stepped-up rate, the total contracted European position would rise further.

That stepped-up total is an important point for investors following project scale. EcoGraf stated that the new agreement on its own would represent about 55% of Epanko's initial planned production capacity of 73,000 tpa once the higher volume phase begins.

When combined with the existing tk accelis agreement, contracted European sales would account for a large share of nameplate output, while still leaving some capacity uncommitted. The company said this remaining capacity is intended to support its HFfree battery anode material strategy and future customer demand.

Why the Vorvertrag Matters for Investors

A Vorvertrag is more substantial than a non-binding memorandum of understanding or letter of intent. Under German commercial practice, it is a recognised preliminary contract that records the principal terms already agreed and commits the parties to progress toward definitive documentation.

For investors, the distinction matters because project developers often use these agreements to demonstrate demand before construction. A binding preliminary agreement that covers volume, pricing approach, term and delivery basis can carry more weight in financing discussions than a broad, non-binding expression of interest.

That said, the company also made clear that completion of the definitive agreement remains subject to customary conditions precedent and project financing requirements. In other words, the announcement improves commercial certainty, but it does not mean the final long-form contract is already complete.

Educational Focus: What Graphite Offtake Agreements Tell Investors

Graphite projects are often assessed on more than just resource size or mine life. The ability to sell future production on acceptable commercial terms can be equally important, especially in speciality industrial markets.

Furthermore, several aspects of a graphite offtake agreement are worth watching closely.

1. Contracted Volume

A higher contracted share of future production can improve revenue visibility. In EcoGraf's case, the agreement begins at 20,000 tpa and later rises to 40,000 tpa, which may help demonstrate demand for Epanko product over a long period.

2. Pricing Mechanism

Graphite is not sold in a single standard form. Prices can vary depending on flake size, purity and end use. EcoGraf's pricing formula includes adjustments for flake size and carbon grade, reflecting product quality rather than a flat commodity benchmark.

3. Floor Price Protection

A floor price sets a minimum sale price below which the contract price should not fall. This can matter because lenders typically want some confidence that revenue will remain at workable levels even during weaker market conditions.

4. Delivery Terms

Transport and logistics shape realised revenue. Under an FOB structure, the seller's responsibility ends once the product is loaded at the export port, which can make the allocation of freight costs and shipment risk clearer.

5. Counterparty Quality

The identity of a buyer can influence how financiers assess execution risk. In this instance, EcoGraf did not name the counterparty due to confidentiality obligations, but described it as an established European graphite trader with a long history of supplying industrial end-users in Europe and international markets.

For retail investors, the key lesson is that offtake agreements are not only about sales. They can influence project bankability, future expansion decisions and the likely path from feasibility study to financing.

Support for Project Financing and Expansion Planning

According to the ASX release, the proposed offtake agreement supports EcoGraf's project financing process. That is a central point because lenders to mining projects commonly prefer a meaningful proportion of forecast production to be contracted before debt is committed.

The structure of the new agreement also links directly to future scale. Once the volume increases to 40,000 tpa after five years, the contract would support EcoGraf's assessment of staged throughput expansions beyond Epanko's initial 73,000 tpa design rate.

This gives the Epanko development pathway a phased profile:

1. Initial production capacity of 73,000 tpa at Epanko.
2. Initial offtake purchases of 20,000 tpa under the new agreement from production start.
3. Volume step-up to 40,000 tpa after five years.
4. Possible staged expansions, which EcoGraf said are supported by the higher contracted volume profile.
5. Uncommitted capacity retained for battery anode material processing and future customers.

Investors often watch for this sequence in development-stage resource companies. Commercial contracts can feed directly into financing, and financing can in turn determine whether the project moves into construction.

Epanko's Role in EcoGraf's Broader Graphite Strategy

The announcement also sits within EcoGraf's wider plan to build a vertically integrated battery anode materials business. According to the company, more than US$30 million has been invested across a business model that includes mining, shaping, purification and recycling applications.

The company's stated development platform includes:

• Epanko Graphite Mine in Tanzania
• Mechanical Shaping Facility in Tanzania
• EcoGraf HFfree purification facilities located near electric vehicle, battery and anode manufacturers
• HFfree purification technology for battery anode recycling

Epanko is central because it is intended to supply both natural flake graphite products for industrial customers and feedstock for battery anode material processing. That dual pathway gives EcoGraf flexibility in how it allocates future production.

The company's Updated Bankable Feasibility Study, released on 25 February 2026, supports a 22-year life of mine. EcoGraf stated that the production targets and forecast financial information are based on Ore Reserves derived from Mineral Resources made up of 43% Measured Resources and 57% Indicated Resources, with no Inferred Resources included in the Ore Reserve or production targets.

That statement is relevant because it gives investors a clearer basis for interpreting the production outlook behind the offtake agreements.

Why the European Market Focus Is Relevant

Europe remains a large industrial market for graphite, and EcoGraf said demand is supported by increasing regional requirements for secure and diversified graphite supply chains. The company did not claim project-specific policy support, but it did frame the demand outlook around customer interest in supply chain diversification.

Both disclosed offtake relationships are with established European counterparties. The new buyer is confidential, while the earlier agreement is with tk accelis Trading GmbH. For EcoGraf, that concentration in Europe may help establish a customer base in a region where industrial users are actively seeking supply alternatives.

The company also noted that a large proportion of the new contract volumes are expected to go into Germany, which remains an important industrial market within Europe.

What Investors May Watch Next

Following this update, several milestones are likely to remain in focus:

• Progress from the binding term sheet to a definitive long-form offtake agreement
• Further developments in project financing
• Any updates on Epanko staged expansion studies
• Allocation of remaining production capacity to EcoGraf's battery anode material strategy
• Additional customer contracts or processing developments linked to the integrated graphite business

The announcement does not resolve all execution questions, but it does strengthen the commercial base around Epanko. EcoGraf now has one expanded German trader arrangement and one existing tk accelis agreement supporting future sales into Europe.

EcoGraf's latest ASX update increases the planned offtake with its German trading partner to 40,000 tpa after five years, with purchases starting at 20,000 tpa from production commencement. Combined with the existing 20,000 tpa tk accelis agreement, the company has built a meaningful contracted sales position into Europe. According to the announcement, the floor price structure, long contract term and increased volume profile support project financing and the evaluation of future Epanko expansions.

Want to Know When the Next Major Graphite Discovery Hits the ASX?

Discovery Alert's proprietary Discovery IQ model scans ASX announcements in real time, instantly identifying significant mineral discoveries — including graphite — and turning complex data into actionable investment insights for both short-term traders and long-term investors. Explore why major mineral discoveries can generate substantial returns on Discovery Alert's dedicated discoveries page, and begin your 14-day free trial today to position yourself ahead of the market.