Ceylon Graphite has entered into a purchase and distribution agreement with GES Europe GmbH (GES), specialist in the manufacture, trade, and processing of synthetic and natural graphite
“Ceylon’s graphite has uniquely high natural carbon characteristics that exceed those of any other natural graphite suppliers we have seen. The extremely high graphite grade, low environmental footprint and superior performance characteristics are tremendously beneficial to our customers. Our clients cover the range from battery manufacturers to construction materials and defence industry applications. We are excited to supply Ceylon Graphite to the global market and to collaborate on a range of opportunities.”, says Benjamin Sarkozy, GES CEO.
GES expects the range of products using Ceylon graphite to include, among others, 95%+ C direct ship graphite as well as thermally purified 99% C grade. GES will provide customer outreach, market entry strategy development, market research and contract negotiation.
The distribution agreement provides GES preferred pricing FOB Colombo and guaranteed supply if certain volume thresholds are maintained for an initial period of 12 months. The agreement provides certain distribution exclusivity within Europe but does not restrict Ceylon from any other direct sales or agreements.
“We have never seen this much demand for our high-carbon, low-environmental footprint natural vein graphite. Demand for non-Chinese supply is at a historic high following the announcement by China curtailing government exports and President Biden’s recent announcement introducing a 25% tariff increase on Chinese graphite”, says Sasha Jacob, Ceylon CEO.
Ceylon Graphite is involved in the exploration and production of graphite in historic resource jurisdictions in Sri Lanka. It holds a land package constituting 121 km² grids containing historic vein graphite deposits. These unique and comparatively higher margin vein (lump) deposits currently make up less than 1% of the world graphite production.
These exploration grids represent the majority of known historic graphite resources in Sri Lanka. The relevant areas in which these grids reside have previously had historical production dating back to the 1920s and 1930s.
