EcoGraf (ASX:EGR) is progressing plans to establish a 25,000-tonne-per-annum HFfree graphite purification facility in Germany, with site selection supported by German government agencies and industry stakeholders, according to an Australian bourse filing on Thursday after market hours.

The company is also evaluating potential locations in Europe, Asia, and the US while a European Investment Bank-supported market study is currently underway, per the filing.

A comparable US facility is estimated to require $95 million in capital expenditure, generating a pre-tax net present value of $282 million, an internal rate of return of 42%, and annual earnings before interest, taxes, depreciation, and amortization of $42 million, the filing said.

The company noted that strategic equity and offtake discussions are advancing, as European policy and KfW Research highlight the need to reduce dependence on China for graphite purification and battery anode materials.

The company plans to visit its preferred German site in October, the filing added.