ChemX Materials signs agreement to enter C4V’s lithium-ion supply chain
ChemX Materials plans to supply high-purity battery materials to global markets.
Perth-based ChemX Materials (ASX: CMX) has signed an agreement with American battery technology company Charge CCCV (C4V) to ensure its battery materials meet the requirements of C4V’s technology and qualify for inclusion in its supply chain.
Under the terms of the agreement, ChemX and C4V will meet their own costs relating to any studies needed and negotiate a binding offtake agreement for products from ChemX’s high purity manganese (HPM) project in South Australia following successful C4V qualification.
The agreement is considered a significant step forward as ChemX advances the project with a view to becoming a sustainable and reliable global supplier of high purity battery materials.
Manganese deposit
The HPM project is based on ChemX owning a manganese ore mineral deposit and using a purification flowsheet to produce high-purity volumes of battery-grade manganese.
ChemX has completed initial metallurgical test work and is optimising a flowsheet design for the HPM process.
The company is expecting to start work on a pre-feasibility study in the second half of this year.
Renewable battery technology
C4V is a global leader in renewable battery technology and is involved in some of the world’s largest gigafactory developments.
These include Recharge Industries’ advanced battery manufacturing production facility in Victoria and iM3NY’s lithium-ion battery plant in the United States.
The company has patented technologies which can be commercialised through joint ventures with upstream supply chain partners for the production of lithium-ion battery cells.
While HPM is the initial focus of the new agreement with ChemX, C4V will also focus on additional materials needed for its lithium-ion battery cells.
Powerful step forward
ChemX chief executive officer Mark Tory said the agreement with C4V is a “powerful step” forward in its journey to enter the global lithium-ion battery supply chain.
“To attract the calibre of an industry leader like C4V confirms the potential of our strategy to become a supplier of high-purity materials to the battery sector,” he said.
“The nature of battery materials means it is essential to enter into early engagement with potential customers to ensure products are made to specification … we will now work with C4V through the supply chain qualification process with the goal of progressing towards a binding offtake agreement for HPM produced by ChemX.”