American Manganese Inc said it has signed a memorandum of understanding (MOU) with Zenith Chemical Corporation to develop a strategic expansion plan targeted at Asia's lithium-ion battery recycling market.
The Surrey, British Columbia-based critical metals company noted that Zenith is an existing producer of high purity nickel sulphate for the lithium-ion battery supply chain and aims to expand its business into battery recycling and high-value cathode precursor materials.
Its existing nickel processing plant in Taiwan can produce up to 45,000 tons per year of nickel sulphate.
Under the MOU, American Manganese said it plans to produce high-nickel cathode precursors, such as NMC811 and NMC9x, at the existing pilot and demonstration plant scale.
READ: American Manganese approaching 'operational readiness' at its battery recycling demonstration plant
The company said Zenith would then validate the material specifications and convert the precursor material into cathode active material to test its properties in lithium-ion batteries. The two companies will work together to achieve the timeline and milestones that would mutually benefit American Manganese’s patented technology and Zenith's robust supply network.
"Zenith is an existing producer of battery materials for the lithium-ion battery supply chain and their incredible supply network and market intelligence offers an intangible benefit for the RecycLiCo processes expansion into Asia's battery supply chain," American Manganese president and CEO Larry Reaugh said in a statement.
“I'm excited for the opportunity to demonstrate the RecycLiCo process capability to produce high-nickel cathode precursor product and I'm confident in our ability to achieve the desired specifications'" he added.
American Manganese is focused on recycling and upcycling lithium-ion battery waste into high-value battery cathode materials, using its closed-loop RecycLiCo process.
With minimal processing steps and over 99% extraction of lithium, cobalt, nickel, and manganese, the upcycling process creates valuable lithium-ion battery materials for direct integration into the re-manufacturing of new lithium-ion batteries.
Contact the author at stephen.gunnion@proactiveinvestors.com