- Renascor Resources (RNU) has signed a memorandum of understanding (MoU) with one of the world’s biggest anode producers
- Zeto — an industrial company headquartered in China — currently produces 30,000 tonnes of anode product every year
- Under the MoU, Renascor will supply up to 10,000 tonnes per annum of purified spherical graphite (PSG) to Zeto over a 10-year period
- Additionally, both companies will work together to undertake product validation tests before a formal agreement is signed
- Renascor is up a healthy 21.4 per cent on the market and shares are trading at 3.4 cents in early morning trade
Renascor Resources (RNU) has signed a memorandum of understanding (MoU) with one of the world’s biggest anode producers.
Officially known as Jiangxi Zhengtuo New Energy Technology, Zeto currently produces 30,000 tonnes of anode product every year. The industrial company is headquartered in China.
Further, the company is in the process of constructing an additional 20,000 tonnes per annum capacity, bringing total production to 50,000 tonnes per annum by 2022.
Under the MoU, Renascor will supply up to 10,000 tonnes per annum of purified spherical graphite (PSG) to Zeto over a 10-year period.
Additionally, both companies will work together to undertake product validation tests before a formal agreement is signed.
Purified spherical graphite is a refined form of graphite that is the main raw material anode manufacturers need to produce lithium-ion battery anodes.
This is Renascor’s second MoU signed in a matter of months, signing one with Minguang New Material in September last year.
“Our MoU with Zeto is a further significant step in Renascor’s plans to become a globally competitive Australia producer of battery anode material,” Managing Director David Christensen commented.
“Together with our recent offtake MoU with Minguang New Material, these two off-takers will account for up to two-thirds of our planned PSG production,” he said.
“We are particularly pleased to have secured our second PSG offtake agreement with an anode material company affiliated with one of the most technically adept anode technology developers and producers in China,” he added.
Renascor is up a healthy 21.4 per cent on the market with shares trading at 3.4 cents at 10:33 am AEDT.