South Star Battery Metals Corp. (TSX-V:STS, OTCQB:STSBF) announced that it has received a US$3.2 million grant from the US Department of Defense (DoD) under the Defense Production Act (DPA) Title III authorities utilizing funds appropriated by the Inflation Reduction Act, to advance a National Instrument 43-101 Feasibility Study (FS) for the company’s flagship BamaStar Graphite Project in Alabama.
The battery metals project developer said the FS will cover all aspects of the planned BamaStar graphite mine from upstream mining operations to the downstream manufacturing of finished commercial battery-ready graphite products, while detailing all important and essential related information, including operational, financial, commercial graphite product performance data, and environmental, social and governance (ESG) criteria.
It will also incorporate a vertically integrated lithium-ion (Li-ion) battery-graphite anode manufacturing facility in the southeast corridor of the US.
"South Star is strategically bringing the first new graphite production in the Americas online in January 2024 at Santa Cruz (in Brazil)," South Star Battery Metals CEO Richard Pearce said in a statement.
"Our goals are to be safely and responsibly producing 100,000 tonnes/year of graphite concentrates and 70,000 tonnes/year of value-add material in phases over the next 5-7 years," he added.
South Star noted its planned battery-graphite products will include a broad range of products from coated spherical purified graphite (CSPG) active anode materials for Li-ion battery applications to conductivity-enhancement products for use in all major primary (i.e. non-rechargeable) and secondary (i.e. rechargeable) battery chemistries.
The company added that as part of the agreement, the DoD will provide US$3,179,999 and South Star will contribute US$3,772,499 in matching funding on a cost-share basis over a period of 18 months, and after the successful delivery by the company of a National Instrument 43-101 Preliminary Economic Assessment (PEA), which is scheduled for completion at the end of the first quarter of 2024.
The US currently produces no graphite concentrates or downstream battery-grade anode materials, according to the company.
South Star Battery Metals is a Canadian battery metals project developer focused on the selective acquisition and development of near-term production projects in the Americas.
Contact Sean at sean@proactiveinvestors.com