Falcon Announces Strategic Partnership With Shanshan to Develop
Falcon Energy Materials plc
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Falcon Announces Strategic Partnership With Shanshan to Develop
Customer Base and Market Anode Plant Production
PRESS RELEASE FOR IMMEDIATE RELEASE
Abu Dhabi, United Arab Emirates, April 15, 2025 – Falcon Energy Materials plc (TSX-V: FLCN)
(“Falcon” or the “ Company”) and Shanghai Shanshan New Material Co., LTD (“ Shanshan”) are
pleased to announce the signing of a term sheet for a strategic partnership to develop the customer
base for Falcon’s coated spherical purified graphite (“ CSPG”) anode production facility in Morocco
(the “Anode Plant”). Shanshan is a global leader in lithium-ion battery anode materials, producing
both natural graphite anode materials as well as synthetic graphite anode materials. Shanshan was
the world’s largest producer of synthetic graphite anode materials in 2024, with a 21% market share,
and has an industry-leading research and development department near Shanghai, China.
HIGHLIGHTS
▪ The partnership with Shanshan, alongside previously announced technical partner, Hensen,
round out key partnerships required to de-risk and accelerate the development of Falcon’s
anode plant in Morocco;
▪ Shanshan brings synthetic CSPG production capabilities and an established customer base
in Asia and Europe, and will support Falcon in qualifying its CSPG product to meet end-user
specifications;
▪ Construction of Falcon’s pilot plant in Morocco, with a production capacity of 100kg per day of
CSPG, will commence in Q2 2025, and is expected to be operational by H2 2025;
▪ Following the successful com missioning of the Anode Plant, Shanshan will collaborate with
Falcon to secure a binding offtake agreement, followed by a formal marketing agreement.
“We are very pleased to welcome Shanshan to our consortium. Following our redomicile to Abu Dhabi
completed last year, we have created a unique platform, headquartered in the UAE, while maintaining
an open mind to partnerships with industry leaders such as Shanshan ” commented Matthieu Bos,
Chief Executive Officer of Falcon. “The addition of Shanshan to Falcon’s Partnership Framework will
firmly establish us in the CSPG supply chain at this important time in history. Falcon’s strategy and
structure are truly unique and cannot be replicated by anyone in the short to medium term.”
DETAILS
Key Addition to Falcon’s Partnership Framework.
Falcon’s partnership framework, which was announced in Q3 2024, identified the requirement for two
key partners to derisk and accelerate the development of the Anode Plant. Shanshan, as the
commercial partner (the “ Commercial Partner”), will be responsible for the integration of Falcon
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within the complex battery supply chain, including working closely with Falcon on the qualification of
its CSPG product to end-user specifications. The Company believes that aligning with a Commercial
Partner, who has existing synthetic CSPG production and an established list of clients both in Asia
and Europe, is strategically important. The majority of commercially available graphite anodes consist
of a blend between synthetic and natural graphite. This alignment between Falcon and the Shanshan
will firmly establish Falcon in the highly complex anode material supply chain.
In addition, Hensen Graphite & Carbon Corporation (“ Hensen”) was previously announced as the
technical partner (the “ Technical Partner”) providing engineering, procurement, qualification and
construction expertise to produce CSPG . Hensen brings years of operational expertise from its
successful synthetic and natural graphite anode plants in China and has collaborated with Shanshan
in the past.
Figure 1: Falcon Partnership Framework
Notes: 1. Falcon to control, fund and operate Morocco Anode Plant; 2 Hensen to provide technical support to development
of Anode Plant; 3. Shanshan to provide offtake for Anode Plant; 4. Graphite concentrate production from Falcon Lola
Graphite Project in Guinea and third-parties; and 5. Commercial production to blend synthetic CSPG to produce anode
material.
NATURAL CSPG
1 2 3
NATURAL GRAPHITE
ANODE PLANT
CONCENTRATE
TECHNICAL PARTNER COMMERCIAL PARTNER
NATURAL
CSPG
SYNTHETIC
CSPG
BINDER
ANODE
MATERIAL
5+ + =
ANODE MATERIAL VALUE CHAIN
4
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Construction of Pilot Plant to Develop Customer Base.
Falcon and Hensen, will start the construction of a pilot plant in Morocco (the “ Pilot Plant”) in Q2
2025. The Pilot Plant will have a daily production capacity of approximately 100kg of CSPG. Products
from the Pilot Plant, which is expected to be operational in H2 202 5, will be shared with Shanshan’s
existing clients as well as potential new customers to facilitate the development of the Anode Plant
customer base and qualify Falcon’s CSPG to end-user specifications.
Marketing Agreement and Potential Investment.
As part of the non -binding term sheet and f ollowing the successful qualification of CSPG from the
Pilot Plant, Shanshan will assist Falcon to secure a binding offtake agreement with a n international
offtaker (the “ Binding Offtake Agreement”) using the Shanshan brand . In return for securing the
Binding Offtake Agreement, Shanshan will enter into a marketing agreement with Falcon (the
“Marketing Agreement”). Key provisions of the Marketing Agreement will include a gross revenue
royalty payment to Shanshan for the first phase of production from the Anode plant as well as a
second, reduced, gross revenue royalty payment for all subsequent Anode Plant production phases.
The Marketing Agreement will remain in force for an initial period of five year s from the
commencement of the Anode Plant production and can be extended by mutual consent. In addition,
Shanshan and Falcon have started discussions about a potential investment in the Anode Plant or in
Falcon by Shanshan.
ABOUT SHANGHAI SHANSHAN NEW MATERIAL CO., LTD
Shanshan is the world’s largest producer of synthetic graphite anode materials with a market share
of 21% in 2024 (ICCSino). Shanshan counts all the preeminent cell manufacturers and Chinese,
European and American end-users among its clients. Shanshan has an industry leading research and
development department with over 775 employees which have drafted numerous industry standards
and has over 465 battery-related patents. Shanshan has developed a large production base for
various anode materials that sets th e benchmark in the industry with a current designed capacity of
700,000 tonnes per annum (“tpa”) of anode material in China and a 100,000 tpa development project
in Finland.
ABOUT FALCON ENERGY MATERIALS PLC
Falcon aims to become a fully integrated supplier of battery anode material. The integrated business
model would result in the creation of a mine-to-market active anode material producer, hosting a large
high-purity graphite production mine in the Republic of Guinea, and a value-added, coated spherical
purified graphite conversion facility in Morocco.
With attractive operating costs, proximity to European end-markets and strong ESG credentials, the
Company is poised to become a reliable supplier while promoting sustainability and supply chain
transparency. Falcon is committed to generating sustainable, long-term benefits that are shared with
the host countries and communities where it operates.
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For additional information, please visit Falcon’s website at www.falconem.net.
Contact:
Matthieu Bos Matt Johnston
President & CEO IR Advisor
Email: [email protected] Email: [email protected]
Telephone: +971 2307 4013
Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the
TSXV) accepts responsibility for the adequacy or accuracy of this release.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This press release contains "forward-looking information" within the meaning of Canadian securities
legislation and other statements that are not historical facts. Forward-looking statements are included
to provide information about management’s current ex pectations and plans that allow investors and
others to have a better understanding of the Company’s business plans and financial performance
and condition.
All information contained herein that is not clearly historical in nature may constitute forward -looking
information. Generally, such forward -looking information can be identified by the use of forward -
looking terminology such as “round out ”, “accelerate”, “expect”, “follow”, “successful”, “including”,
“believe”, “qualify”, “aim”, “become”, “commit” or variations of such words and phrases or state that
certain actions, events or results "may", "could", “will”, "would" or "might". Specific forward-looking
statements in this press release include, but are not limited to, statements and information with
respect to: (1) the conclusion of a final and binding partnership with Shanshan; (2) the impact of the
partnership with Shanshan and the previously announced technical partner, Hensen, in rounding out
the key partnership required to de-risk and accelerate the development of Falcon’s Anode Plant; (3)
Shanshan supporting Falcon in qualifying its CSPG product to meet end -user specifications; (4) the
commencement of construction of Falcon’s Pilot Plant in Morocco in Q2 2025; (5) Falcon’s Pilot Plant
in Morocco planned production capacity of 100kg per day of CSPG; (6) the expectation that the Pilot
Plant will be operational by H2 2025; (7) the commissioning of the Pilot Plant; (8) the anticipated
collaboration between Shanshan and Falcon to secure a Binding Offtake Agreement (9) the formal
marketing agreement to be concluded following the commissioning of the Anode Plant ; (10) the
expected impact of adding Shanshan to Falcon’s Partnership Framework in establishing Falcon within
the CSPG supply chain; (11) Falcon’s belief that its strategy and structure are unique and cannot be
replicated by others in the short to medium term ; (12) the role of Shanshan as Falcon’s commercial
partner in integrating Falcon within the battery supply chain , including in supporting the qualification
of its CSPG product to meet end -user specifications ; (13) Falcon’s belief that alignment with a
commercial partner possessing existing synthetic CSPG production capabilities and a client base in
Asia and Europe is strategically important to its success; (14) the establishment of Falcon within the
anode material supply chain through its alignment with Shanshan; (15) the role of Hensen as Falcon’s
technical partner in providing engineering, procurement, qualification, and construction expertise to
support CSPG production; (16) the benefit to Falcon of Hensen’s prior operational experience and
collaboration with Shanshan ; (17) Falcon controlling, funding, and operating the Morocco Anode
Plant; (18) Hensen providing technical support for the development of the Anode Plant; (19) Shanshan
providing offtake for the Anode Plant; (20) the production of graphite concentrate from Falcon’s Lola
Graphite Project in Guinea and from third -party sources; (21) the commencement of commercial
production to blend synthetic CSPG to produce anode material ; (22) Falcon partnership framework;
(23) Falcon and Hensen commencing construction of the Pilot Plant in Morocco in Q2 2025; (24) the
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Pilot Plant having a daily production capacity of approximately 100kg of CSPG; (25) the expectation
that the Pilot Plant will be operational in H2 2025; (26) products from the Pilot Plant being shared with
Shanshan’s existing clients and potential new customers; (27) the facilitation of the development of
the Anode Plant customer base and the qualification of Falcon’s CSPG to end -user specifications
through the Pilot Plant’s production; (28) the successful qualification of CSPG produced from the Pilot
Plant; (29) Shanshan assisting Falcon to secure a Binding Offtake Agreement with an international
offtake following the qualification of CSPG from the Pilot Plant; (30) use of the Shanshan brand; (31)
the entry by Shanshan into a Marketing Agreement with Falcon in return for securing the Binding
Offtake Agreement; (32) key provisions to be included in the Marketing Agreement; (33) the inclusion
of gross revenue royalty payments to Shanshan in the Marketing Agreement, including a higher
royalty for the first production phase and a reduced royalty for subsequent production phases; (34)
the Marketing Agreement remaining in force for an initial five -year term from the commencement of
Anode Plant production, with the possibility of extension by mutual consent; (35) the ongoing
discussions between Shanshan and Falcon regarding a potential investment by Shanshan in the
Anode Plant or in Falcon ; (36) Falcon’s aim to become a fully integrated supplier of battery anode
material; (37) the creation of a mine -to-market active anode material producer through Falcon’s
integrated business model; (38) the development of a high -purity graphite production mine in the
Republic of Guinea; (39) the development of a value -added, coated spherical purified graphite
(CSPG) conversion facility in Morocco; (40) Falcon being poised to become a reliable supplier of
anode materials while promoting sustainability and supply chain transparency, supported by attractive
operating costs, proximity to European end -markets, and strong ESG credentials ; (41) Falcon’s
commitment to generating sustainable, long -term benefits to be shared with host countries and
communities where it operates.
Forward-looking information is based upon certain assumptions and other important factors and
assumptions subject to significant business, geological, economic and competitive uncertainties and
contingencies that, if untrue, could cause the actual results, performance or achievements of the
Company to be materially different from future results, performance or achievements expressed or
implied by such information or statements. There can be no assurance that such information or
statements will prove to be accurate. Key assumptions upon which the Company’s forward -looking
information is based include, without limitation, the Company’s capacity to execute on its plans.
Readers are cautioned that the foregoing list is not exhaustive of all factors and assumptions which
may have been used. Forward-looking information is subject to known and unknown risks,
uncertainties and other factors that may cause the actual results, l evel of activity, performance or
achievements of the Company to be materially different from those expressed or implied by such
forward-looking information, including but not limited to: (i) volatile stock price; (ii) the general global
markets and economi c conditions; (iii) the possibility of write -downs and impairments; (iv) the risk
associated with exploration, development and operations of mineral deposits and mine plans for the
Company’s mining operations; (v) the risk associated with establishing title to mineral properties and
assets including permitting, development, operations and production from the Company’s operations
being consistent with expectations and projections; (vi) fluctuations in commodity prices, finding
offtake takers and potential clients or enforcing such agreements against same, (vii) prices for diesel,
process reagents, fuel oil, electricity and other key supplies being approximately consistent with
current levels; (viii) production and cost of sales forecasts meeting expectations; (ix) the accuracy of
the mineral reserve and mineral resource estimates of the Company; (x) labour and materials costs
increasing on a basis consistent with the Company's current expectations; (xi) there being no
significant disruptions affecting the oper ations of the Company whether due to artisanal miners,
access to water, extreme weather events and other or related natural disasters, labour disruptions,
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supply disruptions, power disruptions, damage to equipment or otherwise; (xii) asset impairment (or
reversal) potential, being consistent with the Company's current expectations; (xiii) risks associated
to the accuracy of projections provided in a preliminary economic study which are preliminary in nature
and which include significant of uncertainties; and ( xiv) other risks and uncertainties described or
referred to in the section entitled “Risk and Uncertainties” in the Company’s management’s discussion
and analysis for the year ended December 31, 2023, as updated from time to time in the Company’s
interim management’s discussion and analysis for its quarterly financial periods, each of which is filed
on SEDAR+ at www.sedarplus.ca.
Although the Company believes its expectations are based upon reasonable assumptions and has
attempted to identify important factors that could cause actual actions, events or results to differ
materially from those described in forward-looking statements, there may be other factors that cause
actions, events or results not to be as anticipated, estimated or intended. There can be no assurance
that such forward-looking information will prove to be accurate, as actual results and future events
could differ m aterially from those anticipated in such forward -looking information . Such forward -
looking information has been provided for the purpose of assisting investors in understanding the
Company's business, operations and exploration plans and may not be appropriate for other
purposes. Accordingly, readers should not place undue reliance on forward-looking information.
Forward-looking information is given as of the date of this press release, and the Company does not
undertake to update such forward-looking information except in accordance with applicable securities
laws. The Company qualifies all of its forward-looking statements by these cautionary statements.