South Star Battery Metals Corp. (TSX-V:STS, OTCQB:STSBF) has announced that it has signed a letter of intent with Graphex Technologies (OTCQX:GRFXY, HKG:6128) to jointly develop a manufacturing and processing facility for battery anode material.
South Star said the parties intend to develop a definitive agreement by October 31, 2022, to share expertise and technology for the design, construction, and operations of the facility.
It is expected that graphite feed stock will be provided by South Star’s Santa Cruz graphite mine in Brazil and its Ceylon graphite mine in the United States.
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The goals of the joint venture are to have a centrally located, vertically integrated supply chain for active battery anode and value-added materials supplied by two high-quality, scalable graphite operations in two strategic and stable jurisdictions in the Americas.
South Star CEO Richard Pearce said the company is pleased to be further developing a long-term strategic relationship with Graphex at a critical moment in the energy transition revolution.
“This partnership will benefit both parties and allow us to quickly deliver critical battery anode and other value add materials for clients in strategic locations around the world,” Pearce said.
“Reliable, secure supply chains are the key to the world’s ability to execute on the exciting energy transition revolution underway, and South Star is pleased to be part of this paradigm shift.”
Graphex CEO John DeMaio added that the collaboration with South Star will allow the parties to explore the exciting prospects of diversifying the upstream supply of graphite to the global EV system.
“The volume, quality, and stability of supply from their assets in Brazil and the US, coupled with our proven expertise in delivering high-volume, high-quality anode material would have significant positive impact on the industry’s ability to meet production projections for EVs in the coming years and decades,” DeMaio said.
South Star Battery Metals is a Vancouver-based battery metals company focused on the acquisition and development of near-term production projects in the Americas.
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