Sarawak accelerates graphite production for EVs

KUCHING: SEDC Energy Sdn Bhd (SEDC Energy) and Gallois New Energy Materials (M) Sdn Bhd (Gallois New Energy) have signed a memorandum of understanding (MOU) to expedite the development and establishment of a high-end Graphite Manufacturing Plant in Samalaju Industrial Park, Bintulu.

The aim of this venture, valued at USD 1.5 billion (RM 6.3 billion), is to explore opportunities in the electric vehicle (EV) industry, with the anticipation of enhanced capabilities and sustainable growth for Sarawak.

At the same time, Gallois Group has chosen Sarawak as the location for the manufacturing plant to establish it as a major global source of graphite, producing carbon-neutral, high-purity anode materials outside of China.

This move is intended to meet the increasing demand for sustainable and cost-effective graphite supply in the expanding EV battery markets.

The MOU outlines a strategic plan focusing on high-end graphite products, with a planned three-stage development set to launch in 2025, subject to the availability of 100MW power.

This plan leverages Sarawak’s infrastructure advantages, including low-cost and renewable hydropower.

Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg, who witnessed the signing ceremony of the MOU on February 2, stated that it is a testament to the state’s commitment to advancing chemical technology components for hydrogen production.

He emphasized that it aligns with the Sarawak government’s policy of transforming the state into a hub for hydrogen production.

The primary focus of the MOU is the advancement of chemical technology components for hydrogen production, with the shared goal of making substantial contributions to Sarawak’s economic development and emphasizing hydrogen as a strategic sector crucial for a sustainable future.

SEDC Energy, being at the forefront of sustainable energy ventures, possesses a diverse portfolio spanning Crude Algae Oil, Suitable Aviation Fuel, Biomass, hydrogen supply, both downstream and upstream business, and green mobility solutions, according to Abang Johari.

He further added that the Gallois Group of Companies, represented by Gallois New Energy Materials (M), Malaysia (GNEM), brings a wealth of expertise to the forefront and positions Sarawak as a key player in the graphite industry.

Gallois, renowned for its mining and refining operations in Madagascar, stands as a powerhouse in graphite production.

Abang Johari stated that their specialities and high-quality graphite, characterized by a perfect crystalline structure, make them the ideal partner for Sarawak’s growing hydrogen sector.

Meanwhile, SEDC Sarawak chairman Tan Sri Datuk Amar Abdul Aziz Husain explained that the objective of this partnership is to advance the chemical industry by developing components for the green and circular economy, aligning seamlessly with Sarawak’s economic goals.

He stated that collaborating with Gallois presents an opportunity to further diversify and expand their reach, acting as a catalyst for venturing into more advanced battery production for EVs.

Among those present at the ceremony were Deputy Premier Datuk Amar Awang Tengah Ali Hasan, SEDC Energy Sdn Bhd CEO Robert Hardin, and Gallois Group of Companies president George Lu.