The strategic partnership is expected to result in the development of Falcon Energy Materials’ first active anode material (AAM) pilot and commercial-scale plant in Jorf Lasfar, Morocco

Canadian-listed Falcon Energy Materials (formerly SRG Mining) announced it had entered into the agreement with Moroccan company Fluoralpha on 20 May. Fluoralpha uses fluorosilicic acid (FSA), a by-product captured during the production of fertilisers, to produce anhydrous hydrogen fluoride (AHF) (100% pure hydrofluoric acid) and synthetic fluorspar from its operations in Jorf Lasfar near Casablanca.

Construction of the pilot-scale AAM plant is expected to begin in Q2 2025, with commissioning targeted for H2. The pilot plant will produce 100kgpd of CSPG and be able to provide product samples to potential customers, whereas the commercial-scale facility will have a nameplate capacity of 25ktpy of CSPG. Under the agreement, Fluoralpha will supply AHF, a key component used in spherical graphite processing. Falcon Energy Materials plans to use feedstock from its Lola graphite project in Guinea, including third-party graphite concentrate.

Meanwhile, Fluoralpha is building two production lines in the same vicinity, scheduled to begin operating in 2026. These lines will produce 20ktpy of AHF and 30ktpy of aluminium fluoride (AlF3), utilising fluorine derived from phosphate rock. In addition, Falcon Energy Materials has formed strategic and technical partnerships with Chinese graphite anode producers Hensen Graphite and Shanghai Shanshan to produce and qualify its CSPG.

Given the AAM plant’s location in Morocco, a country with a Free Trade Agreement (FTA) with the USA, the project has the potential to meet key criteria under the US Inflation Reduction Act (IRA). This is particularly relevant considering the US Department of Commerce’s recent preliminary decision to impose tariffs of up to 721% on natural and synthetic graphite AAM from China. Simultaneously, the development of Fluoralpha’s facility will establish it as Morocco’s first and sole producer of AHF and AlF3, reducing the country’s dependence on imports and enhancing its role as a supplier of fluorochemicals.