Renascor enters strategic cooperation MOU with Mitsubishi Chemical for graphite supply from SA project
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Renascor Resources has entered a non-binding Strategic Cooperation Memorandum of Understanding (MOU) with Japanese anode material manufacturer Mitsubishi Chemical Corporation for the supply of graphite products – and potential commercial partnership.
Mitsubishi Chemical is Japan’s largest chemical corporation and one of the world’s largest producers of lithium-ion battery anode materials.
The MOU provides for the potential purchase by Mitsubishi Chemical of graphite concentrates, purified spherical graphite and other graphite products from Renascor’s (ASX:RNU) Siviour graphite and Battery Anode Material (BAM) project in South Australia.
It also provides a framework for Mitsubishi Chemical to consider a commercial partnership with the company to help facilitate the development of the BAM Project.
The company is currently in the advanced stages of an updated and optimised BAM study which is assessing an increase in Purified Spherical Graphite (PSG) production capacity, as well as additional staged expansion of PSG operations.
“We are delighted to be working with Mitsubishi Chemical, one of the world’s leading anode manufacturers, with an established track record of supplying high quality anodes to the lithium-ion battery sector,” Renascor MD David Christensen said.
“As we move forward to the completion of our optimised BAM study and our transition into the construction phase, we will continue to align Renascor with leading anode companies seeking high quality graphite concentrates and purified spherical graphite.
“Our agreement with Mitsubishi Chemical is a further significant step toward Renascor constructing, in Australia, the first integrated, in-country mine and purified spherical graphite operation outside of China.”
Following approval from the South Australian Department of Energy and Mining (DEM) of the Program for Environment Protection and Rehabilitation (PEPR) for the proposed Siviour mine and concentrator, the accelerated commencement of the mine and concentrator would permit the early production of graphite concentrates, prior to the production of PSG following the planned commencement of the BAM operation.
Following the successful completion of preliminary product validation tests, the parties have agreed to undertake further product testwork on Renascor’s graphite concentrates, PSG and other products and to progress negotiations to determine potential volume, price and other key supply terms, as well as a potential commercial partnership.
This MOU compliments Renascor’s product offtake work streams, which are well progressed and include a non-binding strategic cooperation and offtake agreement with South Korean conglomerate POSCO.
It also compliments companies with whom Renascor has entered into non-binding offtake MOUs, including Chinese anode companies Shanxi Minguang New Material Technology Co. Ltd. and Jiangxi Zhengtuo New Energy Technology Co. Ltd. and Japanese trading company Hanwa Co. Ltd.
This article was developed in collaboration with Renascor Resources Limited, 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.