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- Renascor Resources (RNU) enters into a strategic co-operation and offtake memorandum of understanding with South Korean conglomerate POSCO
- The agreement covers the purchase of 20,000-30,000 tonnes per annum of purified spherical graphite from Renascor’s planned operation in South Australia
- The final amount will be decided once the parties progress to a formal binding offtake agreement and certain studies have been completed
- Renascor is up 15 per cent and is trading at 11.5 cents per share at 11:27 am AEST
Renascor Resources (RNU) has entered into a strategic co-operation and offtake memorandum of understanding (MOU) with POSCO.
The agreement covers the purchase of 20,000 to 30,000 tonnes per annum (tpa) of purified spherical graphite (PSG) from Renascor’s planned battery anode material operation in South Australia.
The final amount will be decided once the parties progress to a formal binding offtake agreement.
POSCO, one of South Korea’s largest conglomerates, is the largest anode manufacturer outside China, with production capacity of 44,000tpa and a further 69,000tpa in construction.
POSCO is the world’s leading steel-making company and one of the world’s
largest suppliers of lithium-ion battery material. It operates in 52 countries with more than 29,000 employees and is the largest single private customer of Australian exports.
The final deal is subject to the completion of technical and economic studies. The MOU also provides that POSCO may offer one or more forms of strategic co-operation between the companies, which could include an equity investment in Renascor.
Renascor Managing Director David Christensen is pleased to have the opportunity to work with POSCO.
“The significant offtake requirements from POSCO represent a transformational step change for Renascor, as the demand from POSCO, together with our existing offtake partners, not only fulfils our current stage one PSG capacity, but also warrants material PSG capacity expansions through an increase of stage one and an expanded stage two,” Mr Christensen said.
“The exceptional demand for Siviour PSG is a significant validation of Renascor’s strategy to become one the world’s largest suppliers of low-cost and secure PSG and places Renascor in a strong position as we progress toward binding offtake.”
Renascor was up 15 per cent and was trading at 11.5 cents per share at 11:27 am AEST.
