The firm said it had started commercial production of graphite from the site at Karasnagla in Sri Lanka in December last year.
Today, it said it had achieved an impressive 99.9997% purity using a thermal purification process - Lithium-ion batteries require a minimum purity of 99.95% Cg.
The firm noted that its vein graphite (as opposed to flake graphite) requires no primary processing, merely sizing before it goes to the purification furnace.
"Flake graphite projects aspiring to produce purified graphite for various secondary applications require primary processing of mined graphitic material which typically grades less than 20% Cg in the ground. This adds to higher OPEX and CAPEX requirements," the company said in a statement.
Ceylon also highlighted that 'thermal purification' was environmentally responsible and sustainable and does not utilize acids that are commonly regarded as dangerous and environmentally harmful.
Graphite mined in Sri Lanka is known to be among the purest in the world, but currently accounts for less than 1% of world graphite production.
Shares dropped in Toronto around 15% to C$0.16.
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