- First Graphene signs exclusive technology partnership deal with established US graphite materials company NeoGraf Solutions
- Targeted to reach and exceed minimum annual uptake of 10 tonnes of PureGRAPH® within five years with performance measures in place
First Graphene Limited (ASX:FGR; “First Graphene” or “the Company”) is pleased to announce it has signed an exclusive technology partnership deal with US-based NeoGraf Solutions LLC (“NeoGraf”), the world’s leading provider of graphite materials to multiple industries.
The 10-year agreement to develop and grow the graphene market in the USA is subject to performance measures that commence with a minimum uptake of two tonnes of First Graphene’s PureGRAPH® product in year one as a means to establish and build market share. With strong expectations of growth, that will scale up to a 10-tonne minimum by year four and then in excess of 10 tonnes thereafter with precise quantities to be determined by annual review.
NeoGraf will sell the PureGRAPH® product line under its Graf-X brand, which is well known and has an established reputation in the US market. Due to its repeatable specifications, high aspect ratio platelets and availability in large volumes, PureGRAPH® was deemed to be a good fit with the Graf-X brand.
The tonnages referred to above are annual purchase minimums which if not achieved would result in the agreement reverting to a non-exclusive arrangement. By way of illustration only, achieving the minimum tonnage of 2 tonnes in the initial year would result in revenues of between AU$305,000 and AU$375,000 annually depending upon the mix of product categories ordered. Achieving the increased anticipated minimum in year 4 of 10 tonnes would result in revenues of between AU$1.5m and AU$1.8m annually, again depending on product mix and based on current pricing models. It is important to note these amounts are provided as illustrations only of the potential revenue if minimum order targets are met and are not a forecast of future revenues. Product mix making up the annual tonnages (and therefore pricing and overall revenues) may vary as NeoGraf will market First Graphene’s Australian-manufactured products to different mutually agreed market segments.
NeoGraf is an established leader in graphite material science, developing a range of environmentally sustainable, innovative graphite solutions targeted to a broad range of industrial applications.
The agreement with First Graphene provides NeoGraf with graphene products and solutions to enhance its range and industry reach within the US market.