Firebird Metals Ltd (ASX:FRB, OTC:FRBMF) has picked out what it thinks is the ideal location for its battery-grade manganese sulphate plant, achieving a milestone in its LMFP (Lithium Manganese Iron Phosphate) Battery Strategy.
The company expects the plant's location and the incorporation of cutting-edge technology to yield significant operational and cost advantages.
Managing director Peter Allen said: “We are extremely pleased to be making rapid progress on our LMFP battery strategy, as we remain well on schedule with our strategic objective of growing into a near-term producer of high-purity manganese sulphate for the battery market.
“The completion of the land agreement and establishment of a pilot plant in the Jinshi area brings substantial value to the company, as we gain access and exposure to some of the world’s largest EV battery manufacturers and investors in LMFP batteries.”
Key region for battery metals
The plant will be established in the Jinshi High Tech Industries Development Zone, Hunan province, China – a key region for the Chinese battery metals market.
“The location of our battery-grade manganese sulphate plant in Hunan also places Firebird at the epicentre of manganese sulphate demand in China,” Allen said.
Hunan, known for its burgeoning lithium-ion battery industry and as a dominant LFP cathode production region, presents strategic advantages, particularly for LMFP conversion.
This particular site meets Firebird's operational needs, including accessibility to sulfuric acid, steam, key reagents, customer proximity and efficient transportation routes.
The facility site, near the Jinshi High-Tech Chemical Park, will benefit from efficient and low-cost transportation via river access to the Yangtze River.
This agreement with Jinshi's local government encompasses land allocation, tax incentive structures and rebates, with provisions for future expansions.
The current pre-feasibility study for the China-based plant, expected to be announced in the fourth quarter of 2024, will incorporate these locational benefits.
Technology secured
Firebird has also secured advanced crystallisation technology, a fifth-generation innovation already in use in other China-based plants, which promises significant energy cost reductions in MnSO4 production.
The R&D facility, including the pilot plant, is on schedule, with all key materials ordered and expected to be operational by January 2024.
The pilot plant will initially produce MnSO4 and Mn3O4 samples for potential customers and PFS work.
Additional testing on various manganese-rich PCAM materials is planned, with production expected soon after. The plant's cost and timeline remain on budget and schedule.
Jinshi City, with a population of 280,000, boasts an extensive land and water transportation network.
The Jinshi High-Tech Chemical Park, in the Li Shui River area, is a crucial component of the Yangtze River economic zone's growth plan.
The area already houses 126 large-scale industrial enterprises, providing Firebird with an advantageous industrial ecosystem.
“We expect our R&D and pilot plant to be operational by Q1 2024 and once complete, we will look to commence key pre-qualification activities with cathode producers,” Allen added.
“Importantly, our on-the-ground activities will be managed and led by an experienced in-country team headed by Mr Zhou, COO of our Chinese subsidiary, Hunan Firebird Battery Technology Co Ltd.
“We look forward to sharing updates on further strategic milestones, including the results of the manganese sulphate PFS expected in Q1 next year.”
