Volt Resources Ltd (ASX:VRC, OTC:VLTRF) has submitted four non-dilutive funding proposals, which could deliver more than A$150 million to the battery metals-focused company.
These programs are a part of Volt's strategy to build a graphite ecosystem by becoming a global producer and supplier of flake and processed graphite to customers in North America and Europe.
Volt plans to leverage the current market conditions which have seen legislative and government support to establish electric vehicle and battery ecosystems in North America and Europe. Graphite is one of the priority critical minerals for lawmakers.
The conditions are fuelled by Chinese export control restrictions, which have created a need for localisation, and an anticipated demand vs supply gap.
A report by S&P Global Mobility has found China’s graphite exports continued to fall in the first two months of 2024 after the implementation of the export controls on certain types of graphite:
China’s total exports of flake graphite were down 78% in the first two months of 2024 from the same period in 2023, according to data from China’s customs. Total exports of spherical graphite were down 65% in January and February from the same period in the previous year.
“Some of the world’s largest supplies”
Volt executive chairman Asimwe Kabunga said: “Volt has made strong progress over the last quarter as it focuses on leveraging the increased demand for graphite and markets seeking to diversify supply chains to support the EV industry.
“With two mines representing some of the world’s largest supplies of graphite and the progression of our planned graphite anode manufacturing facility in Alabama, US, I believe we are well-placed to capitalise on this opportunity. Our A$150 million plus non-dilutive funding pipeline forms a key part of this strategy to become a market leader.”
Volt managing director and CEO Prashant Chintawar added: “I am pleased with the company’s progress and submission of these high quality, complex and multi-party bids for highly competitive non-dilutive funding awards.
“This has been our focus for the first calendar quarter, and we are thankful to battery producers, raw material suppliers, community organisations, academic institutes, economic development authority and other partners who are assisting us with the execution of our strategy to build an integrated graphite business.”
Active funding programs
To capitalise on this opportunity and to execute its strategy to build an integrated graphite business, Volt has submitted multiple proposals to secure non-dilutive funding. These are:
- Volt subsidiary, Zavalievsky Graphite (ZG), worked with a large consortium of organisations and submitted a proposal for a cost-reimbursable, multi-year program focused on graphite processing. If it wins, ZG could receive net funding of up to €2.4 million.
- Volt subsidiary, Volt Energy Materials LLC (VEM), worked with a large consortium of organisations and submitted a proposal for a cost-reimbursable, multi-year program to design, construct and commission a 10,250 tonnes per annum integrated Coated Spheroidised Purified Graphite (CSPG) or natural graphite anode powder plant in Tuscaloosa, Alabama, US. If it wins, VEM could receive net funding of more than US$100 million.
- VEM also submitted a proposal for a cost-reimbursable program on critical materials processing. If it wins, VEM could receive net funding of ~US$1 million.
- VEM has also initiated discussions with the US Government for an additional multi-year, multi-million-dollar program on graphite processing.