Graphjet Technology, an emerging company producing graphite and graphene – critical raw materials for a variety of consumer products including EV batteries – is readying plans to go public following a merger agreement with Energem Corp. a Special Purpose Acquisition Company (SPAC). The merger, which was announced August 2, 2022, will allow Graphjet to become a U.S. Corporation and list on the NASDAQ under the ticker symbol “GTI.”
Graphjet’s patent-pending breakthrough technology transforms an abundant and renewable waste product – palm kernel shells – into highly valued artificial graphene and graphite at a price that is 80 to 90 percent lower than the current market price. Graphjet’s “green” technology is more advanced than other manufacturers of graphite and graphene, and reduces carbon emissions and pollutions.
Malaysia is the second largest producer of palm oil and the waste by-product palm kernel shells in the world, second only to Indonesia. It is estimated that Malaysia generates approximately 5 million tons of dried palm kernel shells annually, making it a sustainable and recyclable source for the production of high-quality synthetic graphite and graphene. Malaysia is where Graphjet currently manufactures graphite and graphene.
“We are very excited to prepare for our listing on the NASDAQ stock exchange,” said Graphjet CEO Aiden Lee. “As a U.S. company, Graphjet will be able to provide the graphene critical to products like EV batteries, semiconductors, and biomedical devices, all at a cost of approximately 80 to 90 percent less than what is currently being manufactured in China.” Mr. Lee added, “We are thrilled to be able to ramp up the manufacturing using an innovative, sustainable natural resource under our proprietary process.”
The anticipated pro forma enterprise value upon completion of Graphjet’s IPO is $1.49 billion. Approximately $115 million is expected to be used for business expansion purposes, including building a manufacturing plant. The company currently outsources its manufacturing operation. Once the new plant is built, Graphjet will be able to double its current capacity and increase its profit margin.
On September 12, 2022, subsequent to announcing its planned merger with Energem, Graphjet announced a collaboration with the prestigious Massachusetts Institute of Technology (MIT). As a member of MIT’s Industrial Liaison Program, Graphjet joins more than 240 leading enterprises such as Apple, BMW, Hyundai, Misubishi, Samsung and other companies who are also in collaborative partnerships with MIT. The collaboration reaffirms Graphjet’s pioneering position in the graphite and graphene industry.
Source: https://www.graphjettech.com/