Targeting Potential Global Graphite Anode Producing JV
Mineral Commodities Ltd (ASX:MRC) has entered into a non-binding Memorandum of Understanding (MOU) with Superior Graphite Co. to work together exclusively to negotiate and form a 50:50 Joint Venture (JV).
The JV would use Superior’s proprietary electro-thermal purification technology to purify MRC’s natural flake graphite at Superior’s existing thermal purification facility located at Sundsvall, Sweden under licence from Superior. MRC has been granted exclusivity to undertake a period of due diligence on the Sundsvall Facility.
The aim of the JV is to produce, market and supply up to ~15-20,000tpa Sustainable Graphite Anode Material to battery manufacturers in Europe, Scandinavia, United Kingdom and Australia.
Sundsvall is located approximately 1,200km south of Skaland with an existing commercial port and access to low-cost hydro-nuclear renewable energy. The Sundsvall Facility has key infrastructure in place including thermal purification capacity, electrical substructure, control rooms, bagging, palletising, laboratory facilities and administrative offices.
Based on Superior’s preliminary assessment, existing thermal purification capacity could be complemented by auxiliary technology to provide an efficient, sustainable in-situ coated anode material for Li-Ion batteries.
MRC’s Chairman, David Baker, said that most importantly, under the JV, the Sundsvall Facility would come with operating personnel and management with decades of advanced carbon manufacturing experience using Superior’s proprietary purification technology.
“We are privileged to have the opportunity to partner with Superior. The JV would provide MRC with a faster route to vertical integration for greater margin capture, reduced technology risk and capex while maintaining our commitment to produce the most sustainable graphite anode material possible,” Mr Baker said.
Superior’s Chairman and CEO, Mr Edward Carney, said the partnership with MRC will allow his company to leverage its leading intellectual property and existing Sundsvall operations synergistically into the European battery anode market at this crucial time in demand for clean energy materials.
MRC will immediately commence a period of due diligence on the Sundsvall Facility, the acquisition structure and the opportunity more generally and its conversion.
Superior Graphite Co. was founded in 1917 in Chicago, Illinois. In the late 1970s, Superior patented graphite thermal purification technology. Today, Superior operates the largest thermal purification processing capacity worldwide, with a combined capacity in excess of 80,000 tonnes per annum. Superior has purified over 100,000 tonnes of natural flake graphite material.
MRC’s 90% owned Skaland Graphite AS, is the highest-grade operating flake graphite mine in the world and the largest producer in Europe. Located in Norway, Skaland runs on low-cost renewable energy and has been servicing the traditional flake graphite market in Europe for nearly a century.
