Volt Resources Ltd (ASX:VRC) has inked a letter of intent (LOI) with Energy Supply Developers (ESD) aimed at supplying battery anode materials for ESD’s planned lithium-ion battery Gigafactory in the United States.
ESD plans to scale the factory up to 50 gigawatt-hours (GWh) of lithium-ion battery production within five years and is expected to commence operations by 2025.
Opportunity to develop supply chain
“Volt is delighted with this unique opportunity to work with Energy Supply Developers in developing a battery supply chain to support the fast-growing electric vehicle and energy storage markets in the United States," Volt Resources managing director Trevor Mathews said.
“The recent high-performance results from Volt’s CSPG (coated spheronised purified graphite) test-work program with AETC provides confidence in our ability to be a key supplier of active battery anode minerals within the ESD Gigafactory.”
ESD’s facility will be in the US Midwest, prompting Volt to begin the process of identifying viable additional locations for downstream graphite processing in the US and Europe.
“Bridging battery manufacturing gap”
Energy Supply Developers CEO Jeff Yambrick said: “Energy Supply Developers is very excited to be partnering with Volt Resources to accelerate North American battery anode materials production.
“ESD is committed to bridging the battery manufacturing gap by bringing the entire battery supply chain including cell manufacturing to America at our dedicated battery industrial park, of which Volt Resources will play a key role.
“Volt Resources is the first of many companies that will join ESD in establishing production of lithium-ion batteries in America.
“We look forward to working with Volt Resources to advance our common goal in America.”
About Volt Resources
Volt Resources is a graphite producer/developer and gold exploration company based in Western Australia.
It is focused on the exploration and development of its wholly-owned graphite and gold projects in Tanzania and Guinea, as well as its 70% interest in the ZG Group in Ukraine.
The ZG Group Graphite Business operates a long-life graphite mine and processing plant with nameplate capacity of up to 30,000 tonnes per annum, producing graphite products across the range.
It is in close proximity to key markets with significant developments in lithium-ion battery (LIB) facilities, planned to service the European-based car makers and renewable energy sector.
The Bunyu Graphite Project is the largest graphite resource in Tanzania, East Africa, and is being developed in two stages, with the feasibility study for Stage 1 completed in 2018 and the Stage 2 expansion based on a prefeasibility study that was released in 2016.