Firebird Metals (ASX:FRB) has secured four non-binding memorandum of understandings for manganese sulphate and manganese tetra-oxide supply from its battery-grade manganese raw material plant in China.
The agreements, signed between four separate Chinese battery cathode manufacturers, represent 70% of the company’s potential manganese sulphate production and up to 100% of the manganese tetra-oxide production.
Firebird, which has a market capitalisation of $13.66 million, says these agreements highlight the demand and critical need for a near-term and reliable source of battery-grade manganese sulphate and manganese tetra-oxide in China.
Managing Director Peter Allen says these agreements are another step forward in becoming a vertically integrated and innovative producer of battery-grade manganese sulphate.
“Our strategy is focused on the rapid development of our manganese sulphate plant and technology portfolio positioning us as a near-term, low-cost producer of high-purity manganese sulphate and tetra-oxide to support the rapidly growing electric vehicle battery market,” Allen says.
“Our Chinese subsidiary, Hunan Firebird Battery Technology has observed a notable evolution in the battery materials market in China over recent years, with several lithium-iron-phosphate plants transitioning to lithium-manganese-iron-phosphate production, highlighting manganese’s growing role in battery technology and demand from end users.”
The company has progressed its China-based research and development facility and in 2024 secured all permits, industrial land for the plant, preliminary designs and now offtake for stage one of operations.
Firebird says a May 2024 Feasibility Study reaffirmed the compelling opportunity the company has created to establish a near-term, cost-competitive, battery-grade manganese sulphate operation.
Firebird says by establishing operations in China, the company has secured several competitive advantages across key areas including cost, technology, and financing.
Firebird Metals is a manganese developer focused on combining mining and downstream processing with the aim to advance the EV battery sector.
Write to Aaliyah Rogan at Mining.com.au
Images: Firebird Metals
