Sparc Technologies Limited (ASX:SPN) is trading at AUD 0.17 on 29 September 2026, up 3.03% on the day following its announcement of positive results from 16-week cyclic corrosion testing of HydroGraph's Fractal Graphene within its ecosparc® coating additives. The results — a 25% improvement in corrosion resistance for a commercial solvent-based coating containing ecosparc® with Fractal Graphene — build on earlier water-based testing and move Sparc meaningfully closer to the commercial Supply and collaboration agreement it is targeting to negotiate with HydroGraph upon successful completion of extended 25-week testing due in November 2026.

About the Company

Sparc Technologies Limited is an ASX-listed advanced materials company developing graphene-enhanced coating additives under the ecosparc® brand. The company's technology is designed to improve the corrosion protection performance of industrial protective coatings — a major global market worth hundreds of billions of dollars annually, encompassing protective coatings for steel structures, marine assets, oil and gas infrastructure, and other high-value industrial applications. Sparc has been working with HydroGraph Clean Power Inc. — a global provider of turbostratic graphene with an approximate Market Capitalisation of A$1.8 billion — to test the performance of HydroGraph Fractal Graphene within ecosparc® formulations.

Recent Development

In an ASX announcement dated 15 September 2026, Sparc Technologies reported the results of 16-week cyclic corrosion testing of HydroGraph Fractal Graphene (HFG) within ecosparc® additives in solvent-based protective coatings, conducted in Sparc's laboratories under ISO 12944-6 methodology. The testing demonstrated a 25% improvement in corrosion resistance (measured by scribe creep) of a commercially available solvent-based coating dosed with ecosparc® containing HFG, compared to the equivalent unmodified coating. These results correspond to the cyclic ageing exposure specified under ISO 12944-6 for C5 Very High durability — the highest severity category of corrosion environment. The results build on previous water-based testing using HFG, which showed up to 60% improvement in corrosion resistance. Extended 25-week (4,200 hour) testing is progressing, with results expected in November 2026. Subject to positive 25-week results, the parties intend to negotiate a definitive commercial supply and collaboration agreement for ecosparc®, consistent with a Letter of Intent signed in March 2026. The company's Share Purchase Plan, open to eligible shareholders and aimed at supporting its growing commercial pipeline, was scheduled to close on 24 September 2026.

Sector Context

Corrosion is one of the most significant causes of infrastructure damage and maintenance cost globally, with the corrosion protection market estimated in the hundreds of billions of dollars. ISO 12944 is the premier international standard for assessing corrosion protection of steel structures, and achieving C5 Very High durability ratings is a benchmark that commands premium pricing in the industrial coatings market. Graphene's extraordinary properties — including impermeability to gases and liquids, exceptional strength, and electrical conductivity — make it a theoretically ideal barrier additive for corrosion-resistant coatings. The challenge has been achieving consistent graphene quality and dispersibility at commercial scale, which HydroGraph's Fractal Graphene is designed to address.

Risks and Uncertainty

The 25-week testing results, due in November 2026, will be the critical test: commercial supply and collaboration agreement negotiations are contingent on those results being positive. A 25% improvement in 16-week testing is encouraging but shorter than the 25-week C5-VH durability target, meaning there is a pathway where longer-term results may not maintain or build on the 16-week performance. Negotiating a commercial supply and collaboration agreement involves commercial and legal complexity, and there is no guarantee the parties will reach agreement even if technical results are positive. Sparc's route to market depends on coating manufacturers adopting ecosparc® as an ingredient, which requires navigating established formulation preferences and commercial relationships in the coatings supply chain.

Catalysts to Watch

The 25-week (4,200 hour) corrosion testing results, expected in November 2026, are the primary near-term catalyst. Positive results consistent with or superior to the 16-week performance would trigger the parties entering negotiations for a commercial supply and collaboration agreement, representing a major commercial milestone for Sparc. The terms and scope of any commercial agreement — particularly the Volume and pricing of ecosparc® supply to HydroGraph customers — would determine the Revenue potential for Sparc from this partnership. Any announcement of additional testing programmes or partnerships with other graphene or coatings companies would indicate the broader commercial pipeline developing around the ecosparc® technology.