EXCLUSIVE: Energem's Malaysian Merger Partner Graphjet Technology Accelerates Production Timeline For Manufacturing Plant
Graphjet Technology, a Malaysian private limited company, has accelerated the timeline for its planned manufacturing plant in Malaysia.
Last week, Energem Corp (NASDAQ:ENCP) said its shareholders voted to approve the previously announced business combination with Graphjet Technology.
Graphjet has an implied pro forma enterprise value at closing of approximately $1.49 billion through its previously announced transaction with Energem.
Graphjet is advancing the construction of its first manufacturing plant in the Kuantan district of Pahang State in Malaysia, which is expected to be commissioned by the second quarter of 2024.
The facility’s completion will enable the company to begin producing graphite to supply its customer Toyoda and generate revenues in 2024.
The facility is expected to recycle up to 9,000 tonnes of palm kernels to produce up to 3,000 tonnes of graphite per year.
Over time, the company expects to scale the facility to 13,000 tonnes of annual graphite production by the second half of 2026.
“We are excited to accelerate our plans for our manufacturing capabilities and production at our plant in the Kuantan district of Pahang State to address the growing demand for graphite and graphene outside of China,” said Aiden Lee, Graphjet’s CEO.
Graphjet’s facility is more than 91,000 square feet in size. The facility has created approximately 200 new jobs.
Graphjet plans to be the leading source of graphite and graphene for the U.S. market, as there are currently no domestic producers, and the country is seeking to reduce its dependency on China for these strategic, battery storage, and anode materials.
Graphjet is backed by several strategic customers, including a $30 million off-take agreement with Toyoda.
The global graphite market was $17.5 billion in 2022 and is projected to reach a market size of $25 billion in 2027, reflecting a CAGR of 7.3%.
Following the closing of the business combination between Graphjet and Energem, the combined company will operate as Graphjet Technology and trade on the Nasdaq under the ticker “GTI.”
The business combination is expected to close on or about March 6, 2024.
Price Action: ENCP shares are up 18.1% at $4.13 during the premarket session on the last check Monday.