09:29 AM EDT, 07/29/2024 (MT Newswires) -- Ceylon Graphite ( CYLYF ) on Monday announced it has entered into a purchase and distribution agreement with GES Europe, a company in graphite product distribution and sales.

The distribution agreement provides GES - whose clients range from battery manufacturers to construction materials and defence industry companies - preferred pricing and guaranteed supply if certain volume thresholds are maintained for an initial period of 12 months. The agreement provides certain distribution exclusivity within Europe but does not restrict Ceylon from any other direct sales or agreements.

"Ceylon's graphite has uniquely high natural carbon characteristics that exceed those of any other natural graphite suppliers we have seen", Benjamin Sarkozy, GES's CEO, said in a statement. "The extremely high graphite grade, low environmental footprint and superior performance characteristics are tremendously beneficial to our customers."

GES expects the range of products using Ceylon graphite to include, amongst others, 95%+ C direct ship graphite as well as thermally purified 99% C grade. GES will provide customer outreach, market entry strategy development, market research and contract negotiation.

"Demand for non-Chinese supply is at a historic high following the announcement by China curtailing government exports and President Biden's recent announcement introducing a 25% tariff increase on Chinese graphite," Sasha Jacob, Ceylon CEO, said in a statement.