en.Wedoany.com Reported - Evion Group (ASX:EVG) is building a non-China critical minerals platform in India, Madagascar, and the United States through a three-pronged strategy, aiming to transform from a graphite developer into a comprehensive supplier covering both graphite and fluorspar operations.

Behind the lithium mining boom, a broader reality is emerging: the battery supply chain is expected to be worth between $75 billion and $96 billion by the end of this decade, but the surrounding critical minerals may be equally indispensable, or even more important in certain areas. Demand has spread to strategic materials such as graphite and fluorspar, exposing the vulnerability of supply chains dominated by China through processing and refining. Tomasz Nadrowski, co-founder and portfolio manager of Amvest Terraden and author of "Mineral Wars – China's Quest for Mineral Weapons of Destruction," points out that China's leverage is based on a simple imbalance: a smaller upstream mining market supports a massive downstream industry covering batteries, magnets, semiconductors, and more. This imbalance is particularly pronounced in graphite: the global market capitalization of listed graphite companies is approximately $2 billion, despite demand in the battery supply chain being roughly equivalent to that of lithium.

Evion Group Managing Director David Round stated that without funding new non-Chinese mines and processing capacity, Western markets will be unable to meet future demand. He believes that graphite and fluorspar share similar market dynamics and are critical minerals needed for growth in the electric vehicle and alternative energy sectors. Evion's focus includes the Panthera project in India, targeting an annual supply of 4,000 to 4,500 tonnes of expandable graphite to Western markets; the Maniry large-scale graphite project in Madagascar; and the Carp fluorspar project in Nevada, USA. Round describes this as a three-pronged diversification strategy driven by three high-quality assets. The fluorspar business expands the company from battery materials into broader industrial applications, covering electric vehicle battery electrolytes, steel, nuclear applications, and semiconductors. He noted that while China remains the dominant supplier, its domestic resources have declined, and it increasingly imports from Mongolia, strengthening the case for developing non-Chinese supply.

"Over the past few years, China's supply tap has often been turned on and off, and it is currently off," Round said. "Potential offtake partners in the EU and Europe have made it clear to us that they are looking for a stable supply of commercial products for decades to come, especially graphite."

A key element of Evion's US strategy is inviting former Australian Ambassador Arthur Sinodinos to help open up US financing, policy, and offtake channels. Round stated that Sinodinos has a deep understanding of the critical minerals agenda and can help the company connect with capital providers, government agencies, and potential buyers. On the policy front, he believes the US backdrop is becoming more favorable, with potential tailwinds including stockpiling, strategic financing, and defense-related supply chains. Round revealed that Evion has received inquiries regarding potential stockpile needs, as expandable graphite is relevant in military and defense applications.

Evion's near-term plans include: expanding Panthera production and proving demand in Europe and the US; advancing permitting, financing, and offtake agreements for the Maniry project; and conducting exploration, fieldwork, and testing for the Carp project over the next six months. Round said: "We are moving quite quickly, and the remainder of this year will involve significant exploration, development, and drilling over the next six months."

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