Casablanca – Falcon Energy Materials, a Canadian battery materials company listed on the Toronto Venture Exchange and operating from Abu Dhabi, has secured approximately $17.3 million in new private funding to accelerate the development of its industrial graphite processing facility in Jorf Lasfar, Morocco. The financing represents a key milestone in the company’s strategy to establish a fully integrated graphite supply chain serving the global electric vehicle battery industry.

The funding was raised through a non-brokered private placement, allowing the company to attract strategic investors without relying on traditional public market intermediaries. Falcon stated that the capital will primarily support the continued development of its Moroccan graphite anode production facility, known as the Morocco Anode Plant, while also covering general corporate and working capital requirements.

Strategic industrial investment in Morocco

The Morocco Anode Plant represents a major industrial investment, with a total project budget estimated at approximately $86 million. The facility is expected to begin production in the second half of 2027, positioning Morocco as a new entrant in the global graphite anode manufacturing sector.

Once operational, the plant will produce approximately 25,000 tons per year of coated purified spherical graphite, a highly specialized material used in the anodes of lithium-ion batteries. These batteries power electric vehicles, energy storage systems, and other clean energy technologies. Graphite anodes are a critical component in battery performance, influencing energy density, charging speed, and durability.

The Jorf Lasfar facility will focus on producing high-quality graphite materials for export to international markets, particularly Europe and North America, where demand for electric vehicle battery components continues to expand rapidly. Falcon aims to offer competitive production costs while supporting global efforts to diversify supply chains currently dominated by Asian producers.

Funding structure and investor support

The private placement involved the issuance of up to 41.6 million units priced at approximately $0.44 per unit, with each unit consisting of one common share and a warrant granting the right to purchase an additional share at approximately $0.55 within 36 months.

The financing attracted a combination of existing shareholders and new institutional investors from North America, Europe, and the Middle East. Among the participants was Argentem Creek Partners, a U.S.-based investment management firm. Existing shareholder La Mancha Investments, a mining-focused investment fund specializing in metals essential to the energy transition, also reinforced its position in the company and is expected to hold approximately 24.1% of Falcon’s fully diluted share capital following the transaction.

The securities issued under the private placement are subject to a mandatory four-month holding period under Canadian securities regulations, and the transaction remains subject to final regulatory approval by the Toronto Venture Exchange.

Integrated supply chain strategy with Guinea project

Falcon’s Morocco investment is closely linked to its upstream mining operations in Guinea. The company is developing the Lola Graphite project in Guinea, representing an estimated investment of approximately $85 million. This mining operation will supply raw graphite material directly to the Moroccan processing plant.

This vertically integrated structure allows Falcon to control both the extraction and processing stages of graphite production, ensuring secure access to raw materials while improving supply chain reliability and cost efficiency. By combining mining and advanced processing capabilities, the company aims to strengthen its position in the rapidly expanding global battery materials sector.

International industrial partnerships

The Morocco graphite project is being developed through international partnerships involving companies from several countries. Falcon has established technical and strategic cooperation with Hensen Graphite & Carbon Corporation, a Chinese company specializing in graphite processing technologies.

In addition, Fluoralpha, a Moroccan industrial company and subsidiary of Innovx, the innovation arm of OCP Group, has joined the project consortium. This collaboration is expected to support the engineering, development, and implementation phases of the plant, contributing local industrial expertise to the project.

These partnerships reflect the global nature of battery supply chains, where mining, processing, and manufacturing activities are increasingly distributed across multiple regions to improve resilience and reduce dependency on single sources.

Morocco’s growing role in the electric vehicle supply chain

Falcon’s investment aligns with Morocco’s broader strategy to position itself as a key player in the global electric vehicle and battery manufacturing ecosystem. The country has already established itself as one of the leading automotive manufacturing hubs in Africa, with production capacity exceeding one million vehicles per year.

Morocco offers several structural advantages that support industrial investment, including free trade agreements with major markets such as the United States and the European Union, modern port infrastructure, competitive industrial zones, and favorable tax incentives for export-oriented manufacturing.

In addition, Morocco is accelerating its energy transition, with a national objective to supply 63% of its electricity from renewable energy sources by 2030. This shift enhances the country’s attractiveness for battery material production, as manufacturers increasingly seek low-carbon supply chains to meet global environmental standards.

Long-term outlook and global market opportunity

The global demand for graphite used in lithium-ion batteries is expected to grow significantly in the coming years, driven by the rapid expansion of electric vehicle production and renewable energy storage systems. Graphite remains one of the most important raw materials in battery manufacturing, accounting for a substantial portion of battery weight and cost.

By investing in Morocco and integrating its supply chain with upstream mining operations in Guinea, Falcon Energy Materials aims to position itself as a competitive supplier of battery-grade graphite materials to international markets.

The Jorf Lasfar facility is expected to contribute to Morocco’s industrial diversification while strengthening its integration into global clean energy supply chains. The project also reflects increasing international interest in Morocco as a strategic destination for advanced manufacturing and battery material production, supporting the country’s long-term economic and industrial development goals.