ChemX Materials (ASX:CMX) has executed a non-binding memorandum of understanding (MOU) with US-based battery technology company C4V to progress its High Purity Manganese (HPM) Project in South Australia.
The company reports this is a step forward for its vision to become a sustainable and reliable global supplier of ‘high-purity’ battery materials. The MOU provides a framework to ensure ChemX’s battery materials meet the requirements of C4V’s technology and qualify for inclusion in C4V’s supply chain.
ChemX reports its HPM Project is based on owning its own manganese ore mineral deposit, as well as utilising the company’s purification flowsheet to produce reliable, ‘high-purity’ volumes of battery grade manganese in Australia.
The company says it has completed initial metallurgical testwork based on its manganese ores and is optimising a flowsheet design for the HPM process. ChemX also expects to start work on a Pre-feasibility Study (PFS) in the second half of 2023.
While HPM is the initial focus of the MOU, ChemX reports a key element of the agreement is to work together on additional materials needed for C4V’s lithium-ion battery cells including its HPA project.
“The nature of battery materials means it is essential to enter into an early agreement with potential customers to ensure products are made to specification, which this MOU provides for”
Commenting on the MOU, ChemX Materials Chief Executive Officer (CEO) Mark Tony says: “The MOU with C4V is a powerful step forward in ChemX’s journey to enter the global lithium-ion battery supply chain. To attract the calibre of an industry leader like C4V confirms the potential of ChemX’s strategy to become a supplier of high-purity materials to the battery sector.
The nature of battery materials means it is essential to enter into an early agreement with potential customers to ensure products are made to specification, which this MOU provides for.
We will now work with C4V through the supply chain qualification process with the goal of progressing towards a binding offtake agreement for HPM produced by ChemX. We will also work together to explore additional opportunities to drive the continued success of each party’s business strategy.”
ChemX reports both parties will meet their own costs in undertaking studies covered under the MOU and cooperate in good faith to negotiate a binding offtake agreement for HPM products following successful C4V qualification.
ChemX Materials is a Perth-based critical minerals development company focused on the reliable and sustainable development of ‘high-purity’ critical minerals needed in lithium-ion batteries.Their primary focus is to advance its vertically integrated HPM Project using manganese ore found on its tenements on the Eyre Peninsula in South Australia.
C4V is a US-based global leader in battery technology and has been involved in some of the world’s ‘largest’ gigafactory developments including Recharge Industries’ gigafactory in Geelong, Victoria, as well as Magnis Energy Technologies’ (ASX:MNS) iM3NY’s gigafactory in the US.The company has patented technologies and is in the business of enabling the creation of joint ventures (JV) with upstream supply chain partners to produce lithium-ion battery cells.
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