ENVIRONMENT

Renascor inks graphite offtake deal with Zeto

Renascor Resources has signed an agreement to supply Jiangxi Zhengtuo New Energy Technology (Zeto) with purified spherical graphite (PSG) for lithium-ion battery anodes.

 A diagram of Siviour's battery anode operation

A diagram of Siviour's battery anode operation

The memorandum of understanding (MoU) includes the purchase of up to 10,000 tonnes annually over a 10-year term. Renascor said that makes up a third of the production capacity from its Siviour battery anode material operation in South Australia.

Zeto, which Renascor said is considered a top 10 anode producer worldwide and is a major supplier of natural flake graphite anodes, has a current capacity of 30,000t/y with another 20,000t/y expected to come online by 2022.

Zeto and Renascor will pwerform additional product validation tests on the product before a binding deal is completed.

Renascor now has supply deals for two-thirds of its PSG production; it already inked a similar deal with Minguang New Material.

"China continues to dominate anode production globally, with production capacity of more than 600,000 tonnes per year, and this makes China the largest PSG consumer in the world," MD David Christensen said. Its production represents 85% of worldwide capacity. 

"The demand for EV batteries continues to underpin growing demand for PSG."

Renascor is now discussing additional potential PSG offtake agreements as well as PSG validation with other anode and battery companies.

"While COVID-19 has caused some delays by preventing site visits and in-person meetings, Renascor continues to make progress in relation to PSG offtake, with current activities largely focused on undertaking PSG validation tests, responding to due diligence enquiries and negotiating potential offtake terms," Christensen added.

Renascor Resources' Siviour project in South Australia has the world's second-largest reported proven reserve of graphite and the largest graphite reserve outside of Africa. 

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining Magazine Intelligence team.

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining Magazine Intelligence team.

editions

Mining Magazine Intelligence Future Fleets Report 2024

The report paints a picture of the equipment landscape and includes detailed profiles of mines that are employing these fleets

editions

Mining Magazine Intelligence Digitalisation Report 2023

An in-depth review of operations that use digitalisation technology to drive improvements across all areas of mining production

editions

Mining Magazine Intelligence Automation Report 2023

An in-depth review of operations using autonomous solutions in every region and sector, including analysis of the factors driving investment decisions

editions

Mining Magazine Intelligence Exploration Report 2023 (feat. Opaxe data)

A comprehensive review of current exploration rates, trending exploration technologies, a ranking of top drill intercepts and a catalog of 2022 Initial Resource Estimates and recent discovery successes.