Volt Resources (ASX:VRC) has outlined its plans to leverage the continued decline in China’s exports of graphite and the government focus on the battery metal as a critical mineral to potentially secure over $150 million in funding.
Asia’s powerhouse witnessed a 78% drop in its flake graphite exports and a 65% reduction in spherical graphite in the first two months of the year, according to S&P Global, which referenced data from China’s customs.
Meanwhile, governments around the world have designated graphite as a priority critical mineral, which attracts significant government funding.
Graphite is an important component of the anodes in batteries, with each electric vehicle requiring 50-100kg, or twice the amount of lithium. Currently, most of that supply comes from China.
But with exports declining due to stricter controls, Volt has mapped out four non-dilutive funding proposals that it says could potentially deliver over $150 million for it to establish itself as a global producer and supplier of flake and processed graphite to customers in North America and Europe.
“Volt has made strong progress over the last quarter as it focuses on leveraging the increased demand for graphite and markets seeking to diversify supply chains to support the EV industry,” Executive Chairman Asimwe Kabunga says.
“With two mines representing some of the world’s largest supplies of graphite and the progression of our planned graphite anode manufacturing facility in Alabama, US, I believe we are well-placed to capitalise on this opportunity.
“Our A$150 million plus non-dilutive funding pipeline forms a key part of this strategy to become a market leader.”
Volt subsidiary, Zavalievsky Graphite (ZG), worked with a large consortium of organisations and submitted a proposal for a cost reimbursable, multi-year program focused on graphite processing.
If successful, ZG could receive net funding of up to €2.4 million ($4.6 million).
Another subsidiary, Volt Energy Materials, has also submitted a proposal for a cost reimbursable, multi-year program to design, construct, and commission a 10,250-tonne-per-annum integrated Coated Spheroidised Purified Graphite (CSPG) or natural graphite anode powder plant in Tuscaloosa, Alabama, United States.
That could deliver Volt net funding of over $US100 million ($151.4 million).
Additional funding proposals include a cost reimbursable program on critical materials processing that could boost the coffers by $US1 million if successful.
Volt has also initiated discussions with the US government for an additional multi-year, multi-million-dollar program on graphite processing.
“Our non-dilutive funding pipeline now exceeds A$150 million and has the potential to dramatically improve and accelerate the growth of the company,” Managing Director and CEO Prashant Chintawar says.
Volt is already an established graphite producer via its 70% stake in ZG in Ukraine, which owns a mine and processing facilities that have been in operation since 1934.
The company is also progressing the development of its large wholly owned Bunyu Graphite Project in Tanzania.
A previously completed feasibility study outlined a stage one mining and processing annual throughput of 400,000 tonnes of ore for final production of just under 25,000 tonnes each year of graphite products.
Write to Angela East at Mining.com.au
Images: Volt
