Graphjet inks LO for Kuantan production plant ahead of its US$1.5b Nasdaq listing

NASDAQ-bound Graphjet Technology Sdn Bhd, the world’s leading graphite and single-layer graphene producer, has recently signed a letter of offer (LO) with the East Coast Economic Region Development Council (ECERDC) to build its RM400 mil production facility in the Phase 3 of the Malaysia-China Kuantan Industrial Park.

The event was graced by ECERDC’ CEO Datuk Baidzawi Che Mat.

Graphjet Technology is the first and only company in the world to transform palm industry waste materials, notably palm kernels, into graphite and single-layer graphene. Touted as the super material, graphene was attributed to the Nobel Prize in Physics in 2010.

The revolutionary patented technology will transform palm kernel shells into single-layer graphene at a significantly lower cost than the current production of single-layer graphene.

The production plant is expected to produce 10,000 tonnes of graphite and 60 tonnes of single-layer graphene annually. This is expected to generate a revenue of RM3.6 bil anually for Graphjet Technology.

Artist impression of Graphjet Technology’s production plant in Kuantan

“Our LO signing heralds a substantial beginning of our first plant producing graphite and single-layer graphene,” commented Graphjet Technology’s founder and chairman Lim Hooi Beng.

“The new 20-acre plant integrated plant (upstream and downstream) is expected to be completed within 18 to 20 months after our IPO (initial public offering) and this project is expected to generate up to 700 jobs over the next four years.”

Lim added: “We have great growth ambitions for Graphjet and will not only stop with one plant. We expect the first products to come on stream in 1Q 2025 and serve customers across Asia, Europe, and the US in the automotive and renewable energy businesses.”

Meanwhile, Graphjet Technology’s CEO Aiden Lee Ping Wei expressed his gratitude to ECERDC for its active recommendations and support that contributed to the latest development.

“Our project will lead and drive innovation and investment in the downstream new energy industry. This will play a vital role in advancing the development of new technology, future materials, and energy industry in Malaysia,” he opined.

“We believe that the impact of our investment will have a far-reaching and positive spill-over effect in the country.”

According to the White Paper for Global Graphite and Graphene Markets by Frost & Sullivan released in November this year; graphene is seen as the “wonder material” of the 21st century due to its extraordinary properties as well as its wide applications in various downstream areas such as energy, electronics and bioengineering.

“However, extremely high cost and potential pollution during the production process remain the major restraints of graphene’s large-scale commercialisation, thus finding a cost effective and sustainable way to produce synthetic graphite and graphene has become more urgent,” the white paper stated. – Dec 30, 2022

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