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- Renascor Resources (RNU) has achieved first stage product qualification with one of China’s largest lithium-ion battery suppliers Minguang New Material
- Three months ago the companies entered a deal for Renascor to supply up to 10,000tpa of purified spherical graphite (PSG) from its Siviour project in South Australia
- The product validation results allows them to begin formal negotiations for a binding offtake deal
- This achievement is also an important step for Renascor achieving project financing for its Siviour project
- Renascor is also in offtake discussions with other parties as the agreed supply amount with Minguang New Material represents just one-third of its planned production capacity
- Company shares are up 7.69 per cent and trading at 1.4 cents
Renascor Resources (RNU) has achieved first stage product qualification after recent quality testing by its MoU partner, Minguang New Material.
In September last year, Renascor and the China-based company entered a non-binding memorandum of understanding.
The 10-year deal involves the supply of up to 10,000 tonnes per annum of purified spherical graphite (PSG) from Renascor’s Siviour project in South Australia.
The successful product validation results allow the companies to enter negotiations for a binding PSG offtake deal to support the lithium-ion battery market.
“The first stage qualification of Renascor’s purified spherical graphite is a significant milestone in the pathway to achieving binding offtake and project financing for our integrated Siviour Battery Anode Material Project in South Australia,” Renascor Managing Director David Christensen said.
Minguan New Material is a subsidiary of Fujian Metallurgical Holding Co., which is a large Chinese state-owned enterprise with 142 subsidiaries and over 38,000 employees.
The China subsidiary is also developing a 40,000 tonnes per annum battery anode manufacturing facility in the Shanxi province.
“We are delighted to be moving ahead with an anode material company of the calibre of Minguang, part of the broader Fujian Metallurgical group, which is one of China’s largest lithium-ion battery material suppliers,” David said.
Renascor is advancing additional offtake negotiations as the 10,000 tonne-per-annum contract under its deal with Minguan New Material represents just one-third of its total PSG production capacity.
Company shares are up 7.69 per cent and trading at 1.4 cents at 11:47 am AEDT.
