PERTH (miningweekly.com) – ASX-listed Renascor Resources has flagged plans to increase production at its battery anode material operation, after inking a strategic cooperation and offtake memorandum of understanding (MoU) with South Korean major POSCO.

The MoU covers the purchase of 20 000 t/y to 30 000 t/y of purified spherical graphite (PSG) from Renascor’s planned battery anode material operation in South Australia.

The final annual amount to be delivered under the offtake and the term of the agreement will be finalised as POSCO and Renascor progress to a formal binding offtake agreement.

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 the two companies, which may include an equity investment in Renascor.

Renascor told shareholders on Wednesday that with the POSCO MoU, the company has now executed and announced offtake MoUs covering up to 60 000 p/a of PSG, compared to Renascor’s current Stage 1 PSG production capacity of approximately 30 000 p/a. The company also continued to receive a significant volume of inbound enquiry from globally-recognised international groups that are leaders in the battery supply chain.

To fulfil the increased offtake volume requirements, Renascor has started feasibility work to facilitate an increase in Stage 1 PSG production capacity and a Stage 2 expansion.

“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,” said Renascor MD David Christensen.

“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 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.”