Renascor Resources has entered into a strategic cooperation and offtake memorandum of understanding (MOU) with South Korean conglomerate POSCO.
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.
Renascor said the MOU provides for the purchase of 20,000 to 30,000tpa of purified spherical graphite (PSG) from its planned battery anode material operation in South Australia and also provides for a potential equity investment by POSCO in Renascor.
According to the company’s statement, the final annual amount to be delivered under the offtake and the term of the agreement will be finalised as the two companies progress to a formal binding offtake agreement.
Renascor Managing Director David Christensen said with the MOU with POSCO, Renascor has now executed and announced offtake MOUs covering up to 60,000tpa of PSG.
“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,” Mr Christensen said.
“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 the world’s largest suppliers of low-cost and secure PSG and places Renascor in a strong position as we progress toward binding offtake.”
