Poseidon Nickel Ltd (ASX:POS, OTC:PSDNF) has entered into a Memorandum of Understanding (MoU) with Pure Battery Technologies (PBT) as it moves on plans to build and operate a battery material refinery hub in Kalgoorlie, WA.
The MoU will study the merits of POS supplying nickel concentrate to PBT’s proposed precursor Cathode Active Material (pCAM) refinery planned to be constructed in WA, with the objective of reaching a definitive agreement detailing how the companies can work together.
This would mean funding and developing a regional supply chain from mine to concentrate, to an intermediate mixed nickel cobalt hydroxide product that will be further refined in PBT’s refinery using PBT’s patented technology to produce products suitable for the battery manufacturing markets.
PBT is targeting initial production of up to 50,000 tonnes per annum of pCAM from the refinery, expandable over time.
Nickel concentrate potential
Poseidon and PBT will study the suitability of POS’s potential nickel concentrate production from Black Swan and/or Lake Johnston as feed to the proposed refinery.
Poseidon owns the Windarra, Black Swan and the Lake Johnston nickel projects, which have significant exploration opportunities demonstrated by the discovery of the Abi Rose deposit at Lake Johnston and the recent discovery of the Golden Swan mineralisation at Black Swan.
Just last month, POS enhanced the Black Swan Project by way of a maiden resource estimate for the Silver Swan Tailings (SST) of 6,200 tonnes of nickel and 460 tonnes of cobalt.
“We look forward to working with PBT to determine if our potential concentrate production could be feed for PBT’s proposed refinery, should we decide to proceed with development of our projects,” managing director and CEO Peter Harold said.
“This could be a great way for us to improve the payability of the nickel in our concentrates and improve the margins of our projects.”
MoU details
Pure Battery Technologies has an international nickel and cobalt refining operation in Germany (owned via a subsidiary company) that is advancing its plan to establish a refinery in Western Australia to produce pCAM battery metal products.
The company was established in 2017 and commercialised and patented the Selective Acid Leaching (SAL) process, which was developed by the University of Queensland and has been commercially proven to produce high-quality, more affordable nickel and cobalt battery materials with a lower environmental footprint.
PBT currently utilises Mixed Hydroxide Precipitate (MHP) to produce nickel and cobalt materials for Lithium-Ion Batteries (LIB).
Notably, PBT’s technology can also be used to recycle existing LIB materials creating a closed-loop lifecycle for these critical battery minerals.
PBT and POS’s MoU will see the WA explorer work with PBT to evaluate the establishment of a regional pCAM refining hub.
PBT will provide its in-house technology and expertise, while POS will provide typical specifications and anticipated production volumes of nickel concentrate from Poseidon’s projects as potential base feed for the proposed refinery, should Poseidon decide to develop its projects and supply concentrate to the proposed refinery.
The MoU is not binding or enforceable unless and until a definitive agreement has been entered into and is designed not to hinder any other transactions or processes that would bring either company’s respective products to market.