Anode company Renascor Resources is looking to increase the Stage 1 production capacity at its Siviour graphite deposit, in South Australia.
The company told the ASX that it is investigating ‘a substantial increase’ in Renascor’s Stage 1 production capacity beyond the currently planned 28,000tpa of Purified Spherical Graphite (PSG) due to increasing inbound enquiries from major anode manufacturers.
Renascor is also working to bring forward feasibility work for the Stage 2 expansion of its planned Battery Anode Material operation in South Australia.
“We are extremely pleased with the extent and quality of inbound enquiries we are receiving from leading anode and battery companies, which represents latent demand for volumes that represent a multiple of our currently planned Stage 1 PSG production capacity, said Renascor Managing Director David Christensen.
“We are currently assessing the optimal scale of Stage 1 production capacity and bringing forward feasibility work for the Stage 2 expansion. Our objective is to leverage our world-class, world scale Siviour graphite deposit to maximise value to our shareholders.”
According to the company’s statement, Renascor continues to progress PSG product validation and offtake agreement terms with existing offtake MOU customers Minguang New Material, Zeto and Japanese group Hanwa, with a view to completing binding offtake agreements for its PSG production.
In the meantime, Renascor is pursuing additional potential PSG offtake agreements and undertaking PSG validation with other anode and battery companies, with a view to securing additional offtake commitments that may allow for the expanded Stage 1 production capacity and further expansion of the project with additional Stage 2 PSG production capacity.
“In parallel, we are working well with our existing offtake partners Minguang, Zeto and Hanwa to progress product validation testwork and to conclude formal binding agreements,” Mr Christensen said.
“We will continue to keep shareholders informed on the proposed capacity upgrade and our progress with additional offtakers.”