Directa Plus PLC (LON:DCTA) said it has signed a supply agreement and a strategic R&D agreement with NexTech Batteries Inc., a Lithium Sulphur (Li-S) batteries company.
The graphene-based products producer and supplier said these agreements follow on from the memorandum of understanding signed with the Nevada, US-based company in October.
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The supply agreement, with an initial duration of three years and the option to extend for another two, will see Directa Plus provide G+ pristine graphene nanoplatelets to NexTech for its first generation of Li-S batteries.
The AIM-listed firm said it will supply NexTech with 300 kilos of nanoplatelets in 2021, with future quantities to be agreed at the end of each year and based on NexTech's anticipated growth.
The two companies have also agreed on a worldwide bilateral exclusivity between the parties in the lithium battery field for the duration of the partnership.
The three-year R&D agreement provides for Joint Lab activities to develop new specific grades of G+ graphene nanoplatelets for the next generation of Li-S batteries.
Both parties will dedicate selected scientists from their R&D teams and part of their respective facilities to the project, Directa Plus noted.
The chemistry of Li-S batteries means they will not catch fire or explode, unlike Li-ion batteries.
NexTech is currently initiating strategic customers and third party sampling and validation so it can deploy batteries in mule vehicles and real-world systems towards the end of 2021.
“We both believe that lithium-sulphur batteries have the potential to become deployed worldwide in multiple applications as we transition to net zero,” said Directa Plus chief executive Giulio Cesareo in a release.
“Batteries that do not use cobalt, but waste sulphur, also represent a more environmentally sustainable choice in keeping with our core values."
Shares surged 12% to 145p on Monday morning.
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