Accelerating Feasibility Work For Enlarged Stage 1 Operation And Stage 2 Expansion
Renascor Resources Limited (ASX: RNU) has successfully executed three 10-year Offtake MOUs that, once binding, could cover all of the Stage 1 production capacity of Renascor’s planned Battery Anode Material operation in South Australia.
Each of the Offtake MOUs is for up to 10,000tpa of PSG, with leading battery supply companies:
• Shanxi Minguang New Material Technology Co. Ltd, a subsidiary of Fujian Metallurgical Holding Co. Ltd. (one of China’s largest battery material groups);
• Jiangxi Zhengtuo New Energy Technology Co. Ltd, an anode supplier to battery giant BYD Co. Ltd amongst others; and
• Hanwa Co. Ltd, a leading Japanese-based global trading company.
Managing Director, David Christensen, said the existing Offtake MOU partners are advancing the Siviour PSG product through their product qualification processes and are progressing to more advanced testing of the product and negotiation of binding offtake terms. Preparation of bulk PSG samples for final PSG validation testing is also currently underway.
He added that Renascor continues to receive an increasing volume of inbound enquiries from leading anode and battery companies, and our current activities include initial customer product testing with these groups.
As a response to this strong level of demand, Renascor has commenced work to investigate an increase in Renascor’s Stage 1 production capacity beyond the currently planned 28,000tpa of Purified Spherical Graphite.
In parallel, Renascor will bring forward feasibility work for a Stage 2 expansion of Renascor’s planned Battery Anode Material operation in South Australia.
“We are extremely pleased with the extent and quality of inbound enquiries we are receiving from leading anode and battery companies, which represents latent demand for volumes that represent a multiple of our currently planned Stage 1 PSG production capacity,” Mr Christensen said.
“We are currently assessing the optimal scale of Stage 1 production capacity and bringing forward feasibility work for the Stage 2 expansion. Our objective is to leverage our world-class, world scale Siviour graphite deposit to maximise value to our shareholders.
“In parallel, we are working well with our existing offtake partners Minguang, Zeto and Hanwa to progress product validation testwork and to conclude formal binding agreements.
“We will continue to keep shareholders informed on the proposed capacity upgrade and our progress with additional offtakers.”
