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PyroGenesis Inc. ("PyroGenesis" or "the Company") (TSX: PYR,OTC:PYRGF) (OTCQX: PYRGF) (FRA: 8PY1), a leader in ultra-high temperature processes and engineering innovation, and a plasma-based technology provider to heavy industry & defense, announces, further to its press release dated April 21, 2026, the successful production of high quality battery-grade graphite from carbon black, using a proprietary plasma process.
Of note, the carbon black used to produce the graphite was itself produced by PyroGenesis in a first-ever achievement where both a natural gas-powered and a methane-powered plasma torch acted as the sole feedstock (i.e. the gas flowing through the torch to create plasma acts as the feedstock that is converted into carbon black). With this process, the plasma gas feedstock was directly converted into carbon black and hydrogen without the need for secondary raw material feedstock gases or additives.
The second step announced today converts the carbon black directly to graphite under high temperature provided by a plasma torch using an inert gas in an inert atmosphere. The resulting graphite surpassed 96% graphitization, as confirmed by an independent testing lab.
The full 2-step system was designed by PyroGenesis on behalf of its client, a Canadian company exploring alternative use of carbons for commercial applications, and effectively produces graphite from a plasma torch with no additional feedstock or additives beyond the methane or natural gas used to create the plasma.
PyroGenesis has a 10% royalty on future gross revenues generated from the client's initial commercial graphite production plant, and a 5% royalty on any subsequent plants. In addition, PyroGenesis is the exclusive plasma supplier and engineering service provider for the construction of any such plants.
As previously announced (press release dated September 3, 2024), this project began with a first phase contract valued at $1 million for the design and delivery of a customized pilot-scale plasma reactor and associated testing infrastructure. The successful results announced today confirm that:
- the PyroGenesis-designed plasma-based process produces graphite at an exceptionally high grade with a graphitization level of 96%. Graphite for lithium-ion battery anodes typically requires a graphitization level between 90% to 95%.1
- methane or natural gas can be used as a combined plasma gas and feedstock to produce carbon black, which can then be converted into graphite also using plasma, with both materials meeting battery-grade standards.
"PyroGenesis' achievement in developing a new graphite production process has significant strategic importance due not only to the growing demand for graphite, but also in securing the graphite supply chain domestically," said Mr. P. Peter Pascali, President and CEO of PyroGenesis. "The graphite industry is heavily dominated by China, who controls 95% or more of the global battery-grade graphite supply.2 This level of control amounts to a major vulnerability for North American manufacturers who need graphite, especially high-grade graphite for use in batteries for EVs, consumer electronics, and large energy storage systems. The research and engineering being conducted by our fast-growing Materials Production vertical continues to underscore how local innovation, using electric plasma as the primary technology, can help solve many of the critical material and supply chain challenges facing both the heavy industry and manufacturing sectors."
Next Steps: The next phase will focus on advancing towards a commercial-scale system to produce high-quality graphite.
INDUSTRY AND MARKET CONTEXT
Graphite is valued for its unique combination of thermal conductivity, electrical conductivity, high-temperature resistance, and lubricating properties, making it a critical component in both modern technology sectors as well as for traditional manufacturing. Graphite is used across a broad range of industrial applications, including batteries, refractories, lubricants, powdered metals, brake linings, and steelmaking, with battery demand becoming an increasingly important growth driver. The International Energy Agency reported that graphite demand rose by between 6% and 8% in 2024, mainly due to growth in electric vehicles, battery storage, renewables, and grid infrastructure. Grand View Research estimates the global graphite market at approximately US$13.29 billion in 2025, projected to grow to approximately US$23.87 billion by 2033.3
Graphite is recognized by the Government of Canada as a critical mineral.4
About PyroGenesis Inc.
PyroGenesis leverages 35 years of plasma technology leadership to deliver advanced engineering solutions to energy, propulsion, destruction, process heating, emissions, and materials development challenges across heavy industry and defense. Its customers include global leaders in aluminum, aerospace, steel, iron ore, utilities, environmental services, military, and government. From its Montreal headquarters and local manufacturing facilities, PyroGenesis' engineers, scientists, and technicians drive innovation and commercialization of energy transition and ultra-high temperature technology. PyroGenesis' operations are ISO 9001:2015 and AS9100D certified, with ISO certification maintained since 1997. PyroGenesis' shares trade on the TSX (PYR), OTCQX (PYRGF), and Frankfurt (8PY1) stock exchanges.
Cautionary and Forward-Looking Statements
This press release contains "forward-looking information" and "forward-looking statements" (collectively, "forward-looking statements") within the meaning of applicable securities laws. In some cases, but not necessarily in all cases, forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "targets", "expects" or "does not expect", "is expected", "an opportunity exists", "is positioned", "estimates", "intends", "assumes", "anticipates" or "does not anticipate" or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might", "will" or "will be taken", "occur" or "be achieved". In addition, any statements that refer to expectations, projections or other characterizations of future events or circumstances contain forward-looking statements. Forward-looking statements are not historical facts, nor guarantees or assurances of future performance but instead represent management's current beliefs, expectations, estimates and projections regarding future events and operating performance. Forward-looking statements are necessarily based on a number of opinions, assumptions and estimates that, while considered reasonable by PyroGenesis as of the date of this release, are subject to inherent uncertainties, risks and changes in circumstances that may differ materially from those contemplated by the forward-looking statements. Important factors that could cause actual results to differ, possibly materially, from those indicated by the forward-looking statements include, but are not limited to, the risk factors identified under "Risk Factors" in PyroGenesis' latest annual information form, and in other periodic filings that it has made and may make in the future with the securities commissions or similar regulatory authorities, all of which are available under PyroGenesis' profile on SEDAR+ at www.sedarplus.ca. These factors are not intended to represent a complete list of the factors that could affect PyroGenesis. However, such risk factors should be considered carefully. There can be no assurance that such estimates and assumptions will prove to be correct. You should not place undue reliance on forward-looking statements, which speak only as of the date of this release. PyroGenesis undertakes no obligation to publicly update or revise any forward-looking statement, except as required by applicable securities laws. Neither the Toronto Stock Exchange, its Regulation Services Provider (as that term is defined in the policies of the Toronto Stock Exchange) nor the OTCQX Best Market accepts responsibility for the adequacy or accuracy of this press release.
For further information contact ir@pyrogenesis.com or visit http://www.pyrogenesis.com
1 https://www.thermofisher.com/blog/materials/how-to-determine-the-degree-of-graphitization-in-battery-anodes/
2 https://energy.stanford.edu/news/confronting-chinas-grip-graphite-batteries
3 https://www.grandviewresearch.com/industry-analysis/graphite-market-report
4 https://www.canada.ca/en/campaign/critical-minerals-in-canada/canadian-critical-minerals-strategy.html#a3
