Australian battery materials company EcoGraf has unveiled its plans to demerge and launch an Initial Public Offering (IPO) of its battery cathode materials subsidiary, Innogy.

The move is expected to benefit the company’s shareholders with direct exposure to a nickel-focussed battery minerals company in Tanzania.

EcoGraf is focused on diversified battery anode materials to produce high purity graphite products for the lithium-ion battery and advanced manufacturing.

The company has the largest nickel exploration tenement package in Tanzania, which covers a total of 4,600km2 area, with 140km of continuous strike length.

It is located in the Karagwe-Ankole Belt, which hosts the Kabanga Nickel project.

The transaction enables shareholders to benefit from the company’s nickel database.

The database contains geological mapping, geophysical surveys, geochemical analysis and exploration drilling data it has acquired in the past 10 years.

EcoGraf is expected to retain its cornerstone shareholding in Innogy, enabling its shareholders to receive a priority offer of new Innogy shares.

The company has a processing facility in Western Australia for manufacturing spherical graphite products for export to Asia, Europe and North America.

The facility leverages a superior, environmentally responsible HFfree purification technology to facilitate sustainably produced high performance battery anode material.

Innogy would benefit from EcoGraf’s operating experience and established relationships with electric vehicle and lithium-ion battery manufacturers in Tanzania.

The company has identified highly prospective nickel sulphide exploration targets, in an independent geological review.

In addition to nickel, the Frontier projects, also showed prospectivity for gold and other cathode minerals.

The projects include Northern Frontier, Southern Frontier, and Western Frontier Nickel projects, along with Golden Eagle gold project.

Furthermore, the IPO will include a priority offer for select EcoGraf shareholders, followed by a public offer, where the company will be a major shareholder.