Lithium explorer AVZ Minerals courts Chinese battery giant
Mining & Resources
The “news flow” keeps flowing for market darling AVZ Minerals, which has now gotten a Chinese battery-maker on side to help it towards its goal of becoming a lithium supplier.
AVZ (ASX:AVZ) has shaken hands with China’s Guangzhou Tinci Materials Technology Co (Tinci) on a potential investment in AVZ and supply from its Manono lithium project in the Democratic Republic of Congo.
Tinci is the largest battery electrolyte manufacturer globally and supplies a substantial portion of the global battery electrolyte market.
The Chinese heavyweight has invested in Ronghui Industry, Jiangxi Lithium and other lithium carbonate manufacturers.
Lithium carbonate is used to make cathode material for lithium-ion batteries.
The news comes a day after AVZ revealed it had hit yet another thick intercept at the Manono project — a 188 sq km area 500km north of Lubumbashi in the south of the DR Congo.
Chairman Klaus Eckhof has previously described Manono as one of the “longest pegmatite intercepts ever reported”.
Pegmatites are rocks formed from lava or magma that are the primary source of lithium.
AVZ’s share price has traded between 2c and 37c in the past year and is currently at 24c, marking an 1100 per cent gain since mid-March last year.
The company is continuing talks with Tinci and other interested Chinese groups.
“AVZ continues an active dialogue with multiple Chinese groups seeking investment opportunities in the company and project,” Mr Eckhof told investors.
“We expect to announce more interest over the coming weeks.”