Volt Resources Ltd (ASX:VRC) is well positioned to benefit from Energy Supply Developers’ (ESD) super site development activities in the US, highlighting surging demand and a strong outlook in the North American battery market.
The graphite producer is planning production of battery anode material (BAM) for potential customers in the US including the Energy Supply Developer's (ESD) super site.
Consequently, Volt is aiming to add additional offtake customers with the potential establishment of more super sites throughout the US while driving lower capital expenditures through the ESD facility development model.
Looking ahead, super site development activity is likely to accelerate once Anchor Tenant, a lithium-ion battery (LIB) cell maker receives funding from the US government.
Super site development plans
ESD's real estate development partner signed a letter of intent (LOI) for the initial plot of land to be developed in a midwestern state in the US, which will most likely be the location of ESD's first super site.
This land is intended for the use of the cell producer, which is expected to be the Anchor Tenant at the super site.
To date, ESD has signed LOIs with twelve prospective tenants. Apart from the LOI signed with the Anchor Tenant, the rest of the prospective tenants are companies that expect to supply the Anchor Tenant.
In addition to the LOIs that have been signed, ESD is working closely with five additional cell makers, which for a variety of reasons are considering ESD's site in the midwestern state, as well as other sites within the USA.
About ESD
ESD is developing a unique integrated LIB facility with a planned capacity of up to 50 gigawatt-hours (GWh) for its initial super site that is expected to commence operation in 2025.
The super site facilities will be developed by ESD to incorporate battery materials suppliers, LIB cell manufacturers, R&D facilities and associated utilities and infrastructure.
ESD has entered into a number of LOIs and is having further discussions with battery material suppliers, cell manufacturers, property and construction groups and expects to make further announcements in relation to super site participants in the near future.