Scorpion Minerals signs landmark MOU with China-based battery leader Sunwoda at Youanmi
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Scorpion Minerals has locked in an MOU with lithium-ion battery manufacturer Sunwoda to advance discussions for potential investment, off-take agreements and development opportunities.
Recent drill hits of up to 2.84% Li20 in stacked LCT pegmatites at Scorpion Minerals’ (ASX:SCN) Youanmi lithium project have attracted the attention of Shengzhen listed conglomerate Sunwoda, a global industry leader in the design and manufacturing of lithium-ion batteries.
The two companies have signed a Memorandum of Understanding (MoU) for potential investment and to fast-track development at the project site.
As part of this process, SCN has invited Sunwoda Electronic Co to visit its operations in Australia for formal discussions and to facilitate a prospective deal to unlock the potential of Youanmi.
SCN CEO Michael Fotios said having sound interest from a company such as Sunwoda validates the tremendous opportunity and upside that sits within Scorpion’s asset and capabilities base.
“This is a significant development for us,” Fotios told Stockhead.
“Sunwoda is the same size as LG who are the fourth largest family run conglomerate in South Korea and a market leader in consumer electronics,” he said.
“Currently, Sunwoda is spending about 800 million dollars on a battery materials processing plant in China and we are delighted with their interest to potentially fast-track Youanmi development.”
Discussions with other parties are also continuing in parallel with SCN’s negotiations with Sunwoda.
Scorpion notes that any meetings or considerations regarding any potential transactions are preliminary and there is no certainty that any binding agreement will be reached.
The company will update shareholders upon any further developments in this regard.
This article was developed in collaboration with Scorpion Minerals, 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.