Flinders Resources (CVE:FDR) continues to position itself to supply high-purity graphite to the lithium ion battery market and has struck a new deal with a strategic Chinese partner.
The new partner has well-established design, build and operational capabilities in high purity graphite production, the firm said.
The firm's Woxna plant in central Sweden remains on a production-ready status and can be restarted in a matter of hours once viable economics return to the graphite market.
The firm is conserving its strong cash position of C$4mln amid four year lows in natural flake graphite prices. Graphite supply from Woxna to traditional refractory markets will be restricted until profit margins improve.
Blair Way, Flinders' president and chief executive, told investors: "As the only public company with a modern western mine and production facility able to produce natural flake graphite, Flinders is uniquely placed to take a leading role in the supply of high-purity graphite to the lithium ion battery market.
"China is presently the leader in graphite purification technology, and is the primary supplier of high-purity natural flake graphite to the battery sector. By partnering with experts in the high purity field, Flinders gains a competitive edge for the timely transition into the high-purity market."