Falcon Energy Materials plc (TSX-V: FLCN) (OTCQB:FLCNF) has provided an update on the construction of its pilot plant at Jorf Lasfar, near Casablanca, Morocco, reporting that the facility remains on schedule for completion and commissioning in the fourth quarter of 2025. The company also disclosed that it has produced its first coated spherical purified graphite (CSPG) samples and that three potential customers have begun the qualification process.
The pilot plant is being built within the industrial complex of Falcon's strategic partner Fluoralpha S.A. at Jorf Lasfar, described as one of Morocco's most advanced industrial hubs. The location offers direct access to port infrastructure, competitive operating costs, and proximity to European and North American markets. Civil construction is advancing under Open Steel Structure Maroc S.A.R.L, the Moroccan subsidiary of Open Building Systems of China, with structural steel fabrication completed and delivery expected in late October. All major processing equipment has been installed at Hensen Graphite & Carbon Corporation in China, with shipment to Morocco anticipated in November 2025.
Falcon has procured and assembled all equipment needed to produce large-scale CSPG samples. The pilot plant was fully commissioned and tested at Hensen's facility in China to ensure optimized performance before shipment. Two distinct CSPG specifications have been produced, with 50-kilogram sample batches currently under evaluation by three major potential customers. The company expects to operate the pilot plant in China throughout October 2025 before shipping it to Morocco for final commissioning.
"This pilot plant represents a pivotal milestone for Falcon - not just in producing CSPG samples, but in advancing toward the establishment of a major anode production facility outside China, positioning us as a key player in the global battery supply chain," stated Matthieu Bos, CEO of Falcon. "We are confident in the global availability of premium graphite feedstock and are actively testing several high-quality sources to ensure scalable, reliable supply for our growing operations."
The pilot plant is a critical step toward securing long-term offtake agreements for Falcon's proposed 25,000 tonnes per annum commercial-scale anode facility. The company aims to become a fully integrated supplier of battery anode materials, with a mine-to-market business model that includes a high-purity graphite mine in the Republic of Guinea and a CSPG conversion facility in Morocco. According to the company, this model positions it to offer attractive operating costs, proximity to European end-markets, and strong ESG credentials.
"Our strategic partnership with Hensen and Fluoralpha extends beyond construction; it signifies the development of a comprehensive, resilient industrial value chain crafted to lead the global battery market for decades to come," Mr. Bos added.
Falcon's announcement underscores the growing effort to diversify the battery supply chain away from China, where most anode production is currently concentrated. The company's progress in Morocco could represent a significant step toward establishing a non-Chinese source of CSPG for the global battery industry.
