Prominent manganese developer Firebird Metals Ltd (ASX:FRB, OTC:FRBMF) has inked a strategic cooperation agreement with China National Chemistry Southern Construction and Investment Co Ltd (China Chemical), a subsidiary of the colossal China National Chemical Engineering Group Corporation (CNCEC).
This partnership is set to pave the way for the development and eventual construction of a high-purity manganese sulphate plant in Jinshi, Hunan province, China.
International cooperation
The parties hope the partnership will signify a leap in technological and industrial development and underscore the need for international cooperation in the field of clean energy and sustainable development strategies.
This non-binding agreement contemplates a mutual collaboration across various facets including investment, financing, engineering construction, operational management and the industrial advancement of battery-grade manganese sulphate and tetroxide production.
Both entities will leverage their respective strengths, underscoring the union as an endorsement of Firebird's lithium manganese ferro phosphate (LMFP) battery strategy and its Manganese Sulphate project.
Enormous scale
Large-scale engineering corporation China Chemical, a pioneer of the 'Belt and Road' Initiative, brings a long history to the partnership. Its parent company CNCEC, an even larger Chinese conglomerate, has worked at a scale hard to imagine in other jurisdictions.
Founded in 1953 and directly overseen by the State-owned Assets Supervision and Administration Commission of the State Council (SASAC) of China, CNCEC has executed more than 90,000 projects globally and manages the Jinshi Industrial Chemical Park where Firebird’s new plant will be located.
Firebird managing director Peter Allen said, “We are very pleased to have attracted a partner in China Chemical, a leader in China and internationally when it comes to building high-quality, tier-one chemical projects.
“China Chemical is the right partner for Firebird and we look forward to working collaboratively with them for the development and build of our sulphate plant.
“China Chemical built and currently maintains the Jinshi Industrial Chemical Park and with our plant to be located in the Jinshi High Tech Industries Development Zone, we have the utmost confidence that the end product will be of the highest quality.
Partnerships with industry leaders
“We are making excellent progress in China and forming partnerships with industry leaders like China Chemical is a strong endorsement of what we are establishing and validation of our unique LMFP battery strategy.
“We are moving rapidly towards our goal of becoming a near-term, low-cost high-purity manganese producer and the timing of our growth vision could not be better, with LMFP forecast to be the dominant cathode for Electric Vehicle batteries and estimated to grow into a >$US20 billion market by 2030.”
Next steps
Firebird, through its Chinese Subsidiary Hunan Firebird Battery Technology Co Ltd, is working on several key workstreams scheduled for completion in the first half of 2024:
- a battery-grade manganese sulphate feasibility study due for completion in March-April;
- investor and customer site visits through March, April and May;
- a product qualification process to commence in March;
- ongoing discussions on EPC and financing; and
- a permitting process, which is progressing as planned and simultaneously with the feasibility study.
MAIN IMAGE: Firebird finance director Wei Li, managing director Peter Allen and China Chemical Hunan Branch general manager Zhou Hongkun at the signing ceremony.