South Korea’s POSCO Signs PSG MOU
Renascor Resources (ASX: RNU) has entered into non-binding Strategic Cooperation and Offtake Memorandum of Understanding (MOU) with South Korean conglomerate POSCO.
The MOU provides for the purchase of 20,000 to 30,000tpa of Purified Spherical Graphite (PSG) from Renascor’s planned Battery Anode Material operation in South Australia and also provides for a potential equity investment by POSCO in Renascor.
POSCO, one of South Korea’s largest conglomerates, is the largest anode manufacturer outside of China, with production capacity of 44,000tpa and a further 69,000tpa in construction.
Listed on the New York Stock Exchange and Korean Stock Exchange with a market capitalisation of over US$25 billion , POSCO is the world’s leading steel-making company and one of the world’s largest suppliers of lithium-ion battery material .
Recently, POSCO has been actively pursuing battery minerals exposure in Australia through transactions with Pilbara Minerals (lithium)6 and First Quantum (nickel).
With the MOU with POSCO, Renascor has now executed and announced offtake MOUs covering up to 60,000tpa of PSG. Renascor’s currently proposed Stage 1 PSG production capacity is approximately 30,000tpa.
In addition, Renascor continues to receive a significant volume of inbound enquiry from globally-recognised international groups that are leaders in the battery supply chain.
Managing Director, David Christensen, said to fulfil the increased offtake volume requirements, Renascor is currently undertaking feasibility work to facilitate an increase in Stage 1 PSG production capacity and a Stage 2 expansion.
Subject to the satisfactory completion of technical and economic studies, the MOU also provides that POSCO may propose one or more forms of strategic cooperation between Renascor and POSCO (or one of its affiliate companies) which may include an equity investment in Renascor.
“We are delighted to be working with POSCO, a world leader in the supply of lithium-ion battery materials with an established track-record of working with Australian companies, including, most recently, Australian suppliers of battery minerals,” Mr Christensen said.
“The significant offtake requirements from POSCO represent a transformational step change for Renascor, as the demand from POSCO, together with our existing offtake partners, not only fulfils our current Stage 1 PSG capacity, but also warrants material PSG capacity expansions through an increase of Stage 1 and an expanded Stage 2.
“The exceptional demand for Siviour PSG is a significant validation of Renascor’s strategy to become one the world’s largest suppliers of low-cost and secure PSG and places Renascor in a strong position as we progress toward binding offtake.
“The MOU with POSCO provides the framework for further negotiations in relation to price, term, product quality and other offtake parameters. Under the terms of the MOU, Renascor and POSCO have agreed to work together to undertake additional product validation tests with a view to concluding a formal and definitive agreement for the sale to POSCO of PSG and for potential further strategic cooperation between Renascor and POSCO.”
For further information please visit: https://renascor.com.au/