Renascor Resources (ASX: RNU) has entered into a memorandum of understanding (MOU) to supply up to 30ktpa of purified spherical graphite (PSG) to South Korean conglomerate POSCO.
The non-binding MOU provides for the purchase of 20,000-30,000tpa of PSG from Renascor’s planned battery anode material operation in South Australia and for a potential equity investment by POSCO.
With the MOU with POSCO, Renascor has now executed and announced offtake MOUs covering up to 60,000tpa of PSG, including the MOU with POSCO.
Renascor Resources managing director David Christensen says the company is delighted to be working with this world leader in the supply of lithium-ion battery materials.
“The significant offtake requirements from POSCO represent a transformation step change for Renascor, as the demand from POSCO, together with our existing offtake partners, not only fulfills our current Stage 1 PSG capacity, but also warrants material PSG capacity expansions through an increase of Stage 1 and an expanded Stage 2,” he said.
“The exceptional demand for Siviour PSG is a significant validation of Renascor’s strategy to become one of the world’s largest suppliers of low-cost and secure PSG and places Renascor in a strong position as we progress toward binding offtake.”
Renascor’s current Stage 1 PSG production capacity is about 30,000tpa and, in order to fulfill the increased offtake volume requirements, the company has commenced feasibility work to increase Stage 1 production capacity and a Stage 2 expansion.
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.
With a market capitalisation of over US$25b, it is the world’s leading steel-making company and one of the world’s largest suppliers of lithium-ion battery material.
POSCO has been actively pursuing battery minerals exposure in Australia though Pilbara Minerals’ lithium and First Quantum’s nickel as part of its goal to become the world’s top player in the global electric vehicle battery materials market by 2030.
Renascor’s Siviour graphite deposit in South Australia is the world’s second largest proven reserve of graphite and the largest graphite reserve outside Africa.
