Evolution Energy Solutions LLC is a US-subsidiary of Evolution Energy Minerals, incorporated to progress Evolution’s downstream plans for the production of high-value coated spherical graphite products.

In August 2023, Evolution entered into a memorandum of understanding with BTR New Material Group Co. Ltd that covered a proposed downstream processing collaboration between BTR and Evolution to produce battery anode materials in North America.

BTR is a high-tech enterprise integrating basic research, product development, production and sales, specialising in lithium-ion battery materials and carbon nanomaterials, including anode, cathode and advanced new materials. BTR’s customers not only include Chinese domestic lithium-ion battery manufacturers such as CATL, BYD, EVE, Gotion High-Tech and REPT, but also include international Tier 1 customers such as SK, Samsung, LG, muRata and Panasonic.

BTR had an estimated 26% share of China’s anode material market in 2022 and exceeds 60% of global market share for natural graphite anodes.

The opportunity to work with BTR and its world-leading commercially proven technology, innovation and Tier 1 customer base is a potential pathway for Evolution to gain exposure to the rapidly growing battery anode market.

The final structure of the downstream processing collaboration is subject to legal and structuring advice, with an initial focus on North America and scope to investigate other jurisdictions outside China. Irrespective of the final structure of the collaboration, BTR would manage the product qualification with its extensive customer list of Tier 1 battery manufacturers and be the exclusive marketing agent for the sale of anode materials produced by the entity established pursuant to the downstream collaboration with BTR.

A working group comprised of senior executives of Evolution and BTR has been formed to build on the site selection studies already undertaken by Evolution for the location of the proposed downstream processing facility.

Evolution has incorporated a wholly owned US subsidiary, Evolution Energy Solutions LLC that will drive the downstream strategy and undertake key activities, including feasibility studies, site selection and obtaining government funding support.

Focus on the US

The US Department of Energy estimates that by 2025, the US will reach 600GWh of battery capacity, which will require 700,000 tonnes per year of battery anode materials.

The US has designated graphite as a strategic critical mineral. The combination of strategic importance of graphite and the US Government’s commitment to both securing the supply of strategic critical minerals and developing domestic anode manufacturing capacity, presents Evolution with an exceptional opportunity for vertical integration.

In a bid to secure supply of critical minerals for the clean energy transition and to establish large-scale onshore critical minerals processing capacity, the US has introduced significant policy initiatives, including:

• Inflation Reduction Act – passed into law in August 2022, the IRA proposes that the US Government will invest approximately $300 billion in deficit reduction and $369 billion in energy security and climate change programs over the next ten years. The US Government has mandated that by 2027, 80% of critical minerals in US-made EV batteries must come from US miners or recycling plants, or mines in countries with free trade arrangements with the US. Under the IRA, foreign entities of concern are excluded from assistance with the focus on Allied Nations that includes the EU, UK, Australia, Japan, South Korea and other aligned countries.
• Bipartisan Infrastructure Law – introduced by the US Government in 2022, provides US$7 billion of funding opportunities in the form of grants. On 19 October 2022, the DOE announced the first rounds of grants under the BIL, which totalled US$2.8 billion.  

US strengthening
ties with Tanzania

In March 2023, US Vice President Kamala Harris visited Tanzania as part of a strengthening of economic ties between the USA and Tanzania, and with Africa more broadly.

With US backing, Tanzania is building a processing facility at the Kabanga nickel project in north-western Tanzania, that is targeted to deliver battery-grade nickel to the United States and global markets by 2026.

With the US Government prioritizing security of ex-China critical minerals supply, this strengthening of economic ties between the US and Tanzania further validates Evolution’s commitment to a vertically integrated business with its Chilalo graphite providing feed for a US based downstream processing facility.

Leadership
Team

Stacy Newstead
Chief Executive Officer – Evolution Energy Solutions LLC

Stacy has twenty years experience in the advanced technology and materials manufacturing sectors, including with the US Department of Defense and private industry. Ms. Newstead will be responsible for leading the company’s efforts to become a vertically integrated producer of high-value graphite products for the energy storage sector. Stacy is based in the US and will be building a team focused on downstream value-adding to graphite concentrate from the Chilalo Project in Tanzania.

Her qualifications as a materials engineer and her extensive leadership building out company capabilities and technical teams make her an excellent fit for this role.

Jesse Edmondson
Business Development

Mr. Edmondson is an exploration geologist with over 12 years’ professional experience developing flake graphite projects in North America.

He has also spent the last seven years as a Business Development and Government Relations expert, supporting various USA battery-materials projects and has developed an extensive network of business and government contacts related to developing domestic supply chains of critical minerals in the US.

Jesse has been working with EV1 on US site selection options since 2022.