- Renascor Resources (RNU) has signed its first memorandum of understanding (MoU) to supply purified spherical graphite (PSG)
- The 10-year deal was signed with Chinese anode manufacturer, Minguang New Material
- Renascor will supply up to 10,000 tonnes per annum of purified spherical graphite from its planned battery anode material operation in South Australia
- Renascor is combining its Siviour Graphite Project with a downstream processing operation to produce PSG for lithium-ion battery anodes
- This is expected to meet the growing demand for lithium-ion battery anodes over the next 10 years
- Company shares are up a healthy 27.3 per cent and are trading for 1.4 cents in early morning trade
Renascor Resources (RNU) has signed its first memorandum of understanding (MoU) for production from its planned battery anode material operation in South Australia.
Renascor signed the deal with Fujian Metallurgical Holding Corporation’s subsidiary, Minguang New Material.
Minguang is an anode manufacturing company developing a ¥5 billion (roughly A$1 billion) 40,000 tonnes per annum lithium-ion battery anode manufacturing facility in China’s Shanxi Province.
“We are particularly pleased to have secured our first PSG offtake agreement with an anode material company affiliated with one of China’s largest lithium-ion battery material suppliers, as this represents a strong endorsement of the technical work we have undertaken in proving up the ability to produce battery-quality PSG from our Siviour project,” Managing Director David Christensen said.
The non-binding MoU will see Renascor supply up to 10,000 tonnes per annum of purified spherical graphite (PSG) over a 10-year period. This represents around one third of its planned PSG production capacity of 28,000 tonnes per annum.
Renascor is combining its wholly-owned Siviour Graphite Project with a downstream processing operation to produce PSG for lithium-ion battery anodes.
PSG is a refined form of graphite that is the main raw material that anode manufacturers need to produce lithium-ion battery anodes.
According to Benchmark Mineral Intelligence, the demand for lithium-ion battery anodes is expected to see an annual growth rate of 29 per cent through to 2030.
“We are seeing increasing interest from anode makers for our Siviour PSG, and we expect this to assist in securing additional offtake commitments in line with our financing and development strategy,” David concluded.
Despite COVID-19 causing some delays and set backs, Renascor is advancing offtake discussions with anode manufacturers and lithium-ion battery companies for the balance of its PSG production capacity.
Company shares are up a healthy 27.3 per cent and are trading for 1.4 cents in early morning trade.