According to Volt, the deal would allow it to outperform most competitive graphite businesses without making an upfront investment or risking a new project.
Due to the purchase of Zavalyevsky Graphite LLC, the Australian company will be able to become a key participant in the supply of graphite and materials for battery anodes on the European market.
Volt Managing Director Trevor Matthews believes that the acquisition of a controlling stake in Zavalievsky Graphite will allow Volt to outstrip its competitors for years to come without risking the development of a new project.
Volt intends to pay off the deal in two payments of $ 3.8 million.
Zavalyevsky Graphite LLC extracts natural ores from the Zavalyevsky deposit, which is considered one of the largest graphite deposits in Europe. The production capacity of the enterprise is up to 30,000 tons of graphite per year. The company's products are exported to the EU, Asia and the CIS.
Graphite is used to enrich steel and cast iron with carbon. It can also be used to make molds for alloys, melting crucibles and ladles. Graphite powder is used to lubricate the casting molds.
