Renascor secures graphite manufacturing site
Renascor Resources has secured a site for manufacturing a key component found in lithium-ion batteries as part of its $210m graphite play.
Graphite company Renascor Resources has secured a site for the manufacture of a key component in the production of lithium-ion batteries.
The ASX-listed company has struck an option-to-lease agreement with South Australian government-owned utility SA Water for a 20ha site in Bolivar, 15km north-east of the state’s main shipping port at Port Adelaide.
It plans to produce purified spherical graphite (PSG) at a battery anode material facility which would be built on the site, sourcing raw graphite concentrate from the company’s planned Siviour mine on the Eyre Peninsula, 120km north-east of Port Lincoln.
Renascor has until June 2025 to exercise the lease option with SA Water, with the option of extending the initial lease to up to 40 years.
The company’s managing director David Christensen said the deal provided certainty over its plans to become a leading producer of PSG for the growing lithium-ion battery sector.
“In securing the strategically positioned and scalable Bolivar site, Renascor will be able to leverage off the high quality of the Siviour resource by vertically integrating the mine and concentrator with a state-of-the-art battery anode material manufacturing facility,” he said.
“We look forward to working with SA Water and the South Australian government as we bring a major new industry to the state.”
Renascor Resources is in the box seat to be one of the first graphite producers to begin exporting from Australia again, and has the backing of a federal government commitment for a $185m loan to develop its vertically integrated project.
The company is planning for initial stage one production of 28,000 tonnes per year of PSG, which would be exported to lithium-ion battery anode manufacturers overseas.
Renascor said the Bolivar facility offered the scale to expand on its stage one capacity requirements.
The company is currently undertaking further studies of its graphite production plans as it awaits state government sign off for its environmental program at Siviour.
A final investment decision is expected this year.
The capital cost of building the mine and concentrator operation on the Eyre Peninsula is expected to be $US79m ($118m), while a further $US63m ($94m) is needed to set up the battery anode material manufacturing facility.
Non-binding offtake agreements are in place with Korea’s POSCO, Chinese firms Zeto and Minguang New Material and Japan’s Hanwa Corporation.
Siviour holds the world’s second largest reserve of graphite and the largest reserve outside of Africa.
Renascor shares were trading 1.2 per cent higher on Tuesday at 21.7 cents.
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