- Renascor Resources (RNU) is looking to increase production capacity for its stage one battery anode material manufacturing operation in South Australia
- The Siviour graphite deposit is currently targeted to produce 28,000 tonnes of purified spherical graphite (PSG) per annum
- However, the graphite company has received a significant amount of interest from anode manufacturers and existing offtake partners — leading it to strive for a higher capacity rate
- In addition to higher output, Renascor plans to accelerate feasibility work for the stage two expansion of its battery anode facility
- Renascor’s shares are up 9.09 per cent and are trading at 12 cents
Renascor Resources (RNU) is looking to increase production capacity for its stage one battery anode material manufacturing operation.
Currently, the South Australian-based operation has a targeted production rate of 28,000 tonnes of purified spherical graphite (PSG) per annum.
The graphite company is also aiming to accelerate feasibility work for the stage two expansion of the battery anode facility.
“Our objective is to leverage world-class, world-scale Siviour graphite deposit to maximise value to our shareholders,” Managing Director David Christensen said.
Since upgrading the ore reserve estimate in July last year, Renascor’s Siviour graphite deposit is the world’s second largest proven reserve of graphite. It is also the largest graphite reserve outside of Africa.
The decision to increase capacity and bring forward feasibility studies is due to receiving a significant amount of enquiries from major anode manufacturers. It also follows Renascor securing three 10-year offtake deals in the last six months.
The first was secured last September with Minguang New Material, a subsidiary of one of China’s largest battery material companies, the second was inked in January this year with anode supplier, Zeto, and the third offtake deal was signed on March 25 with global trading company, Hanwa.
Significantly, each of these deals is for the supply of up to 10,000 tonnes per annum of PSG.
“In parallel, we are working well with our existing offtake partners, Minguang, Zeto and Hanwa to progress product validation test work and to conclude formal binding agreements,” David added.
In addition, the company is looking to secure more offtake agreements with other anode and battery companies as part of its goal to expand stage one and stage two PSG production capacity.
Renascor’s shares are up 9.09 per cent and are trading at 12 cents at 10:17 am AEDT.