Firebird Metals Ltd continued to develop its China-focused battery-grade manganese sulphate strategy during the March quarter, securing strategic partnerships and offtake deals as it moves toward commercial production.
The company finalised four non-binding offtake memorandums of understanding (MoUs) with tier-one Chinese battery cathode manufacturers for manganese sulphate (MnSO₄) and manganese tetra-oxide (Mn₃O₄), underpinning up to 70% of Stage One MnSO₄ and 100% of Mn₃O₄ output from its proposed Jinshi processing facility.
Strong demand for battery-grade metals
The agreements followed successful pilot production and analysis of MnSO₄ and Mn₃O₄, and speak to strong demand for Firebird’s battery-grade materials in China’s expanding lithium manganese iron phosphate (LMFP) market.
Firebird has also signed a non-binding MoU with French multinational Eramet for the supply of manganese ore.
The deal follows successful lab-scale testing using Eramet ore, with provisions for 80,000 tonnes annually – 20% above the volume outlined in the project’s feasibility study – providing a buffer against logistical risks.
Firebird’s proposed plant, located in the Jinshi High-Tech Industrial Park in China’s Hunan Province, was designated a Key Construction Project by both provincial and local governments.
This status secures access to government subsidies, grants and fast-tracked support services.
Construction is expected to commence following a financial investment decision, with a build timeline of less than 12 months.
The facility is designed to produce 50,000 tonnes of MnSO₄ and 10,000 tonnes of Mn₃O₄ annually at a capital cost of US$83.5 million.
The plant’s innovative design includes direct processing of MnSO₄ in solution -eliminating crystallisation and packaging steps – which has resulted in estimated savings of around US$167 per tonne in operating costs.
LMFP battery production and testing underway
Firebird, in partnership with Central South University, has commenced battery-grade cathode material production and button cell battery testing.
Five initial batches were produced using solution-based MnSO₄, with testing focused on evaluating charge-discharge performance.
Up to 100 batches are planned by June 2025, with a transition to pouch cell testing to follow.
Firebird is the first Australian company to achieve LMFP battery production, a milestone in its strategy to become a near-term, vertically integrated supplier of manganese-based cathode materials.
To support its innovative technology rollout, Firebird appointed Sedgman Pty Ltd – a CIMIC Group company – to lead the global commercialisation of its energy-efficient calcining kiln.
Firebird’s pilot kiln demonstrated a 70% reduction in energy consumption compared to conventional kilns, equating to cost savings of around US$30 per tonne.
The kiln is under patent application and may have broader industrial applications, including in lithium sulphate and iron ore processing.
Oakover Project achieves key regulatory milestone
The Western Australian Department of Energy, Mines, Industry Regulation and Safety granted Mining Lease ML 52/1086 over the Oakover Manganese Project.
The lease spans 3,429.8 hectares and includes prospective mining pits and infrastructure sites.
Firebird is now progressing environmental and mining studies in support of its mining proposal.
Oakover hosts a mineral resource estimate of 176.7 million tonnes at 9.9% manganese, including 105.8 million tonnes in the Indicated category.
The project is intended to ultimately supply feedstock for Stage Two expansions of the Jinshi plant.
Corporate position
Firebird closed the March quarter with A$2.35 million in cash.
Exploration expenditure totalled A$167,000 and plant development costs were A$224,000.
Payments to directors and related parties amounted to A$241,000 for the quarter.
Based on current expenditure levels, Firebird estimates funding coverage for just over three quarters.
The company continues to explore financing avenues to support the construction and operational ramp-up of its downstream processing operations in China.