Renascor Resources have signed a Mou with the world’s largest lithium-ion battery materials supplier, POSCO, to build a manufacturing facility for a Siviour Mine and Concentrator at Eyre Peninsula in South Australia, and battery anode material.
This will enable the manufacture of primary components to supply the electric vehicle battery value chain.
The project has the potential to generate around $260 million a year in export revenue and will create 190 full time jobs and over 100 jobs during construction.
The MoU provides for the purchase of up to 30,000 tonnes per annum of Purified Spherical Graphite (PSG) from Renascor’s planned Battery Anode Material (BAM) manufacturing facility in South Australia, and a potential equity investment by POSCO.
Renascor has also announced and executed off-take MoUs covering up to 60,000 tonnes per annum of PSG. Renascor continues to receive many enquiries from globally recognised international groups who are leaders in the battery supply chain.
“The Department for Trade and Investment’s North East Asia team, based out of Seoul, have been instrumental in working with Renascor on their Korean strategy, and advancing discussions with POSCO to support this project,” minister for Trade and Investment Stephen Patterson said.
“This is a significant investment by Renascor in South Australia and provides our state with a new opportunity as the only graphite purification and refining centre for the battery supply chain outside the northern hemisphere.”
Renascor aims to become one of the largest suppliers of low cost, 100 per cent Australian-made, sustainable and ethically sourced PSGs for the lithium-ion battery anode market, particularly within the electric vehicle supply chain.
POSCO, Australia’s largest export customer and one of South Korea’s largest conglomerates with a market capitalisation of over $25 billion, is the world’s largest steel-making company and one of the world’s largest suppliers of lithium-ion battery material.
Under the MoU, Renascor and POSCO will undertake additional product validation, aiming to make an agreement to sell PSG to POSCO and gauge further cooperative opportunities between the companies.
“We are delighted to be working with POSCO, who have an established track record of working with Australian companies, including most recently Australian suppliers of battery minerals,” Renascor managing director David Christensen said.
“The significant off-take requirements from POSCO represent a transformational step change for Renascor as the demand from POSCO, including our existing off-take partners, not only fulfils our current capacity, but also warrants PSG capacity expansions through an increase of Stage 1 and an expanded Stage 2.
“The exceptional demand for Siviour PSG places Renascor in a strong position as we progress towards binding off-take agreements.”
To learn more about investment and partnership opportunities in South Australia, visit www.invest.sa.gov.au.