Gratomic Inc. announced that it has entered into a Commercial Partnership and Sales Agreement with TM2 Verticals. Gratomic will sell concentrate to the partnership for the joint supply of value-added applications. The initial focus will be on Alkaline Batteries.

On June 12, 2023, Gratomic executed a purchase order to supply TM2 with 1 tonne of graphite concentrate from its Aukam Vein Graphite mine in Namibia. The concentrate is being sent to South Africa for further upgrading and then onwards to midstream processors in the United States and Europe, where it will be converted into a Purified Flake Graphite (PFG) equivalent to include in Alkaline Batteries". The pilot processing of this material is being funded by an end user that chooses to stay anonymous during this period.

Once the supply chain and the PFG has been qualified, the end user will enter into a direct purchase agreement with the Commercial Partnership. One of the terms of this arrangement is that Gratomic will sell its graphite to the commercial partnership for a 50:50 split of the profit after toll processing between TM2 and Gratomic. In case the grade of the concentrate exceeds 95%, which is the grade quoted by the Benchmark Mineral Intelligence index price, a "Special Premium" will be applied to the Concentrate Price.

In such a case, the final price for the Concentrate will be adjusted and increased by the Special Premium to the "Final Concentrate Price". The target rate will be a 6.5% increase for a 96% grade, a 19.5% increase for a 97% grade, and a 32% increase for a 98% grade, until such time as there is a quotable index for a grade above 95%. This particular arrangement appears to be the first of its kind in the graphite industry for an up-and-coming producer and shows the power of vertical integration and the benefit of early partnerships with the right people.

TM2 and Gratomic have been working together during the past two years and both agree it is a mutually beneficial arrangement.