Scorpion Minerals (ASX: SCN) has signed a memorandum of understanding (MoU) with Chinese battery materials specialist GreatPower Nickel and Cobalt Materials to advance critical minerals opportunities in Western Australia.
GreatPower will provide Scorpion with up to $15.3 million in funding to support resource definition and production at Scorpion’s WA lithium asset, and will also be responsible for organising mine development funding once mining approvals are granted.
The staged funding will include approximately A$3m (US$2m) upfront, and a further injection of approximately A$12m (US$8m) upon definition of a JORC-complaint resource of 10 million tonnes of lithium oxide at 1.0%.
Energy Storage Manufacturer
Scorpion chief executive officer Michael Fotios described GreatPower as “an extremely well credentialed and experienced energy storage manufacturer.”
“The fact that we have attracted the interest of such a significant Chinese player speaks volumes to the underlying quality of our lithium assets in WA, and the capabilities of our management team to advance these assets through to production,” he said.
Scorpion intends to advance its lithium activities in parallel with gold exploration activities, both at Pharos and its Kirkalocka project in WA’s Murchison region.
The company has already extended the lithium, caesium, tantalum pegmatite strike zone potential within its Pharos project to a 50km long corridor with initial field reconnaissance, including geological mapping and rock chip sampling at Poona East and Poona West.
High-Profile Client Base
GreatPower operates from six plants across China, and its clients include LG Energy Solutions, CATL, BMW, and Samsung.
The company’s current aim is to produce up to 10,000t of lithium manganese oxide cathode material and 20,000t of lithium manganese iron phosphate.
Chair DongQiang Cao said the MoU highlights the company’s strategic move toward collaboration and development of upstream lithium resources.
“This mutual beneficial relationship will realise the synergy of cross-border industry collaboration with Scorpion Minerals.”
Mr Fotios added that Scorpion had already identified potential new project acquisitions, with GreatPower providing further support in return for offtake rights of up to 90%.
The Chinese company has also expressed interest in building a solar power plant to service the lithium mine development and operations.
