Rain Industries , through its subsidiary Rain Carbon Canada Inc., has announced a strategic partnership with Green Graphite Technologies Inc. (GGT) to develop sustainable graphite anode active materials (GAAMs) for lithium-ion batteries. This collaboration, supported by a Sustainable Manufacturing Challenge grant from Next Generation Manufacturing Canada (NGen), aims to establish a circular supply chain for critical battery materials to support Canada's rapidly growing zero-emission vehicle market.

Partnership Objectives

The partnership between Rain Carbon Canada and GGT focuses on leveraging innovative recycling, purification, and manufacturing processes to create a sustainable supply chain for graphite. This initiative aligns with the industry's transformation towards electromobility and stationary battery energy storage required for renewable electricity generation.

Market Opportunity

Canada's zero-emission vehicle market is projected to experience significant growth:

This substantial increase in demand underscores the need for sustainably sourced battery materials, which this partnership aims to address.

Technological Contributions

The collaboration brings together complementary technologies from both companies:

1. Rain Carbon will lead the conversion of feedstock materials using its LIONCOAT® carbon precursor materials and application process technology.
2. GGT will contribute its proprietary GraphPure™ and GraphRenew™ purification technologies.

Production Facilities

The project will utilize multiple facilities across Canada:

• Rain Carbon's Hamilton, Ontario location: Primary base for pilot-scale production and testing
• GGT's pilot facilities in Kingston, Ontario, and Montreal, Quebec: Support for purification activities
• GGT's planned larger-scale demo facility in Mississauga, Ontario: Production of larger quantities starting in 2026

Expected Impacts by 2030

The partnership has set ambitious goals aligned with NGen's mission:

1. Development of two new graphite product lines
2. Implementation of manufacturing processes designed to:
   • Reduce process waste
   • Increase production efficiency
   • Reduce carbon footprint
3. Generation of new intellectual property and technical expertise
4. Creation of employment opportunities across the battery materials sector

About the Companies

Rain Carbon Canada Inc. is a subsidiary of Rain Carbon Inc., a global supplier of carbon-based and chemical products. Rain Industries, the parent company, is listed on both the BSE and NSE in India.

Green Graphite Technologies Inc. (GGT) is commercializing its patented purification technology to produce battery-grade graphite from mined and recycled sources. GGT's technology promises 50% lower operating costs compared to traditional methods and an 82% reduction in carbon footprint versus China-produced anode active materials.

This partnership represents a significant step towards establishing a sustainable and circular economy for battery materials in Canada, supporting the country's transition to a zero-emission future while potentially creating new opportunities in the growing battery materials sector.

Rain Industries Limited , a global leader in carbon and advanced materials production, recently held a management Q&A session to discuss its performance for the second quarter and first half. The company highlighted its strategic initiatives and operational challenges across its diverse business segments.

Alternative Raw Materials Strategy

Rain Industries is actively implementing alternative raw materials across its Carbon and Advanced Materials segments. In the Carbon segment, the company is focusing on diversifying its Green Petroleum Coke (GPC) sourcing and developing innovative logistics solutions to improve efficiency and cost-effectiveness in raw material transportation.

Gerard Sweeney, President of Rain Carbon Inc., emphasized, "By optimizing logistics and expanding our sourcing network, RAIN will be able to reduce the cost of raw material blends while enhancing supply chain flexibility."

The company's Advanced Materials segment has made significant progress in using bio-based raw materials, particularly in its NOVARES resins portfolio. The Duisburg, Germany resins plant has achieved ISCC-plus certification, reflecting the company's commitment to sustainability.

Operational Performance

Rain Industries reported the following capacity utilization levels:

The company is actively working on increasing utilization in the Carbon segment and exploring new market opportunities in the Advanced Materials segment.

Market Challenges and Opportunities

The distillation business faces challenges stemming from the Russia-Ukraine conflict, including energy price increases and reduced coal tar availability in Europe. However, Rain Industries is countering these challenges by increasing the use of alternative raw materials and focusing on cost control to re-establish margins.

In the calcination business, Chinese CPC prices surged early in the year due to reduced refinery output but retreated by quarter-end, remaining 100-150 USD per ton above earlier levels. The company expects to begin generating revenue from Indian Carbon distillation activities in late 2026.

Financial Overview

Rain Industries' gross debt stands at approximately one billion USD with a 9% average interest rate. The company anticipates a working capital release over the next two quarters, which should result in a reduction in gross debt by around 10%.

Srinivasa Rao, Chief Financial Officer, noted, "We expect that CAPEX will be below the typical spending levels as part of our cost-saving initiatives and in response to increased cash requirements to support working capital needs."

Regulatory Compliance and Future Outlook

New emission standards for petroleum coke calciners in India have taken effect, with a compliance deadline of December 2025. Rain Industries is well-positioned to meet these standards and continues to evaluate opportunities for expansion in the cement sector.

Jagan Reddy Nellore, Managing Director of Rain Industries Limited, stated, "We are actively evaluating opportunities to expand our presence in the cement sector. These expansion plans are currently under strategic review and will be formally announced in the upcoming quarters."

As Rain Industries navigates through market challenges and regulatory changes, its focus on alternative raw materials, operational efficiency, and strategic expansion positions the company for potential growth in the coming years.