Volt Resources Ltd (ASX:VRC, OTC:VLTRF) and American Energy Technologies Co. (AETC) have fortified their partnership with a limited scope exclusivity agreement, setting sights on the United States Department of Energy (DOE) funding for a proposed 7,500-tonne per annum natural graphite anode plant.
American Energy Technologies Co., the sole North American firm capable of producing commercial quantities of battery-grade graphite for lithium-ion anodes, has signed a limited scope exclusivity agreement with Volt Energy Materials LLC, a US subsidiary of Volt Resources.
The two companies have a history of collaboration, having worked together for three years, and have successfully tested Volt's graphite using AETC's patented 'Inverted Flow Process'.
Under the new agreement, AETC and Volt will jointly apply for a cost-shared US government grant from the DOE.
The goal is to develop a 7,500-tonne per annum natural graphite anode plant, focusing on the burgeoning Electric Vehicle (EV) market, where demand for graphite anodes is robust.
@asxvolt provides an update on non-dilutive funding which will assist to accelerate execution the company's strategic plan. $VRC
Read the full ASX Announcement here: https://t.co/yEJG525AbG pic.twitter.com/2QefioyWfE
— Volt Resources (@asxvolt) September 11, 2023
Unique partner
Volt managing director and CEO Prashant Chintawar said: “The US Government has implemented several concrete measures to facilitate the onshoring of its electric vehicle supply chain as a matter of national security.
“This is especially true for the graphite anode supply chain in which China retains over 90% market share.
“This creates a significant opportunity for a domestic supplier of high-quality natural graphite anode material.
“We believe that AETC is a unique partner due to its proven ability to produce high purity battery grade natural graphite anode starting with Volt’s graphite concentrate.
“AETC’s innovative Inverted Flow Process is proven at pilot plant scale and studies conducted over the past several years have proven its ability to produce natural graphite anode at quality and reproducibility expected by battery manufacturers.
“We are excited to announce this agreement between AETC and Volt, which is not only aligned with our strategy of becoming an integrated natural graphite anode producer but is a perfect example of collaboration between US Innovation (AETC) and US Industrialization (Volt).”
Key terms
The teaming agreement is intended to foster a cooperative working relationship between the AETC and Volt for the creation of a natural graphite anode manufacturing grant proposal to be submitted by Volt to the US Department of Energy
The team plans to use AETC’s Inverted Flow Process for the simultaneous production of three value-added products including natural graphite anode.
The process has multiple advantages including industry-leading process yields, thus positioning Volt as a cost leader in the industry sector.
AETC will join Volt as a Manufacturing Technology Provider on a Technology Transfer and Toll Processing basis as appropriate.
Reduce Chinese dependency
The proposed plant represents an opportunity to reduce the US's dependency on Chinese-dominated supply chains, particularly in the realm of spheroidal graphite processing.
Volt’s focus on establishing a domestic supply chain gains increased significance given the current geopolitical situation.
The collaboration between AETC and Volt is viewed as a strategic move to tap into considerable US market growth opportunities and capitalise on the DOE's significant funding provisions.
Both companies perceive the downstream project as a significant value generator for Volt shareholders.