Mineral Commodities deal could fast track anode production
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Mineral Commodities has reached an agreement to form a joint venture that reduces its technology risk and place it on the fast track to anode production.
Under the exclusive, non-binding MOU, the company will work with US graphite processor Superior Graphite to negotiate and form an equal joint venture.
Superior has the world’s largest continuous graphite thermal purification capacity using its proprietary technology.
Thermal purification is the only current commercially viable large scale graphite processing technology other than chemical processing, which requires toxic hydrofluoric acid.
The JV will use Superior’s proprietary electro-thermal purification technology to purify natural flake graphite sourced from Mineral Commodities’ (ASX:MRC) Skaland project in Norway at the former’s existing facility at Sundsvall, Sweden.
It will have proposed production capacity of 15,000 to 20,000 tonnes per annum of sustainable graphite anode material for supply to European battery manufacturers seeking non-Chinese anode material.
“We are privileged to have the opportunity to partner with Superior,” managing director David Baker said.
“The JV would provide MRC with a faster route to vertical integration for greater margin capture, reduced technology risk and capex while maintaining our commitment to produce the most sustainable graphite anode material possible.”
Mineral Commodities will now start a period of due diligence on the Sundsvall Facility, the acquisition structure and the opportunity more generally and its conversion.
Superior has combined thermal purification capacity of more than 80,000tpa and has a bulk graphite facility in Chicago and thermal purification facilities in Kentucky and Sundsvall.
The Sundsvall facility is located about 1,200km south of Skaland with an existing commercial port and access to low-cost hydro-nuclear renewable energy.
Existing thermal purification capacity could be complemented by auxiliary technology to provide an efficient, sustainable in-situ coated anode material for Li-Ion batteries.
The facility will also come with operating personnel and management with decades of advanced carbon manufacturing experience using Superior’s technology.
This article was developed in collaboration with Mineral Commodities, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.