Graphene Manufacturing Group Ltd (TSX-V:GMG, OTC:GMGMF) (GMG) announced that it has signed a binding Joint Development Agreement (JDA) with Rio Tinto, with the goal of accelerating the development and application of GMG's Graphene Aluminium-Ion batteries in the mining and minerals industry.
The clean-tech company said Rio Tinto will contribute technical and operational performance criteria and A$6 million, in exchange for preferential access rights.
The JDA is effective immediately and is expected to last two years with payments spread over the term of the agreement, GMG said.
“The collaboration with Rio Tinto on the applications of Graphene Aluminium-Ion batteries is a key step for GMG,” Craig Nicol, CEO of GMG, said in a statement.
“Together, with the existing technical and supply chain partnerships already established, this is another important step towards GMG's goal to become a major global supplier of next generation batteries as we continue to de-risk the commercial scale up of this technology,” he added.
The company noted that the JDA seeks to support the accelerated development of GMG's Graphene Aluminium-Ion Batteries for use in heavy mobile equipment and grid energy storage applications in the mining and mineral industry.
GMG added that the JDA aims to co-develop GMG's Graphene Aluminium-Ion battery pouch cell into an initial battery pack/module proof of concept.
As well, the company said Rio Tinto will seek to involve Original Equipment Manufacturers (OEM), including Heavy Mobile Equipment OEMs, to work with GMG and Rio Tinto to align the battery pack development with end use requirements.
Success could see performance enhancements for Rio Tinto, including faster charging and longer-life batteries for heavy mobile equipment and grid energy storage, as well as supporting Rio Tinto's decarbonisation ambitions, GMG said.
Furthermore, GMG stated that it will retain ownership of the intellectual property of the GMG Graphene Aluminium Ion Battery Pouch Cell and Battery Pack.
On successful completion of the joint project, Rio Tinto would have the right to procure and use the batteries in their operations, according to the company.
GMG is a clean-technology company which seeks to offer energy saving and energy storage solutions, enabled by graphene, including that manufactured in-house via a proprietary production process.
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