Battery Minerals has signed a memorandum of understanding (MoU) with American graphite processing specialist Urbix to establish a joint venture (JV) in Mozambique.
The JV is aimed at developing an environmentally friendly graphite purification facility.
The facility would source graphite from Battery Minerals’ Montepuez graphite project and potentially toll treat graphite from other mines in Mozambique.
Urbix would use its exclusively crafted method to purify natural graphite and advanced graphite derivatives.
Battery Minerals and Urbix have been working together since December 2017, establishing a strategy to combine Urbix’s technology with Battery’s graphite concentrates to make graphite products for the refractory, composites, lithium-ion and nuclear markets.
Battery Minerals managing director Jeremy Sinclair believes the demand for graphite will continue to grow as lithium batteries become more popular.
“There is overwhelming evidence the demand for graphite is going to soar as the take-up of lithium batteries gains speed,” Sinclair said.
“The proposed processing joint venture with Urbix is aimed at ensuring we are well positioned to capitalise on the demand for not only graphite concentrate, but also the higher-margin processed product which is essential to the battery manufacturers.
“The strong outlook for the project is reflected in the fact that some contractors have expressed an interest in being part of the project funding package.”
Battery Minerals is testing the potential for key contractors to participate in funding for the joint venture.