ASX-listed EcoGraf has reported that it has received a research and development tax incentive of $1.7-million from the Australian Taxation Office.

The company explains that the tax incentive relates to eligible research and development costs incurred by the company to develop its EcoGraf HFfree proprietary purification technology during the financial year ended June 30, 2025.

EcoGraf says receipt of the funds bolsters the company’s cash position as it continues to develop its vertically integrated graphite business.

The company adds that it has also submitted proposals for a grant of about €4-million, or A$7-million, from European governments.

The funding would assist with technical development of its Tanzanian upstream and midstream activities, as well as its proposed downstream development in Europe.

EcoGraf is building a vertically integrated battery anode materials business to produce high-purity graphite products for the lithium-ion battery and advanced manufacturing markets.

The company notes that over $30-million has been invested to date to create a highly attractive graphite business which includes Epanko graphite mine, in Tanzania; a mechanical shaping facility in Tanzania; EcoGraf HFfree purification facilities located in close proximity to the electric vehicle (EV), battery and anode manufacturers; and EcoGraf HFfree purification technology to support battery anode recycling.

In Tanzania, the company is developing the TanzGraphite natural flake graphite business, beginning with the Epanko graphite project, to provide a long-term, scalable supply of feedstock for EcoGraf battery anode material processing facilities, together with high-quality large-flake graphite products for specialised industrial applications.

In addition, the company is planning for its mechanical shaping facility in Tanzania, which will process natural flake graphite into spherical graphite (SpG).

This mechanical micronising and spheronising is the first step in the conversion of high-quality flake graphite concentrate into battery-grade anode material used in the production of lithium-ion batteries.

Using its EcoGraf HFfree purification technology, the company says it will upgrade the SpG to produce 99.95%C high-performance battery anode material to supply EV, battery and anode manufacturers in Asia, Europe and North America.

The company explains that battery recycling is critical to improving supply chain sustainability, adding that the company’s successful application of the EcoGraf HFfree purification process to recycle battery anode material provides it with a unique ability to support customers to reduce CO2 emissions and lower battery costs.