Green Technology Metals receives $8m in funding from South Korea’s EcoPro for Canadian lithium facility

Australian lithium specialist Green Technology Metals (ASX: GT1) has signed an $8 million investment and framework agreement with world-leading South Korean EV battery metals producer EcoPro Innovation.

The agreements cover proposals for mining, raw material extraction and processing and conversion activities, including the development of potential mines and a proposed lithium conversion facility in Canada.

Green Technology and EcoPro have also collaboratively submitted a joint application to Invest Ontario seeking funding for the potential lithium conversion facility to be located in Canada.

Strategic partnership

The application follows the Ontario government’s request earlier this year and aims to secure business case approval and financial support to advance the project.

“Our journey with EcoPro Innovation has been over 12 months in the making, during which time our teams have dedicated countless hours working jointly on understanding and expanding GT1’s strategy to be the first integrated lithium chemical supplier in Ontario,” Green Technology managing director Cameron Henry said.

“EcoPro stands out as a top-tier strategic partner, bringing invaluable experience in owning and operating successful lithium conversion facilities as well as nickel precursor and cathode active material facilities globally.”

“Their global scale and expertise in manufacturing and supplying battery-grade lithium chemicals will greatly benefit GT1 as we advance our integrated strategy in North America.”

“This investment and partnering strategy now paves the way, both financially and technically, to continue with our development strategy.”

Subscription agreement

EcoPro is providing GT1 with financial backing via a subscription agreement, whereby the South Korean company will subscribe for $8m in Green Technology shares over two tranches.

Proceeds from the subscription agreement will be allocated to a definitive feasibility study to reach a final investment decision on the Seymour lithium project, funding the lithium conversion facility pre-feasibility study and supporting general working capital.

EcoPro will also be granted the exclusive right to enter into binding agreements to acquire an interest in either or both of Green Technology’s Root and Seymour projects.

North American target

EcoPro Innovation chief executive officer Yoon Tae Kim said the company has been evaluating the North American market for some time and has been in discussions with Green Technology throughout this period.

“Our teams have dedicated significant effort to understanding GT1’s development strategy and recognise the strategic value of their assets, which are located in a prime location with a well-established end-to-end supply chain and ample government support,” he said

“We are looking forward to strengthening a long-term relationship with GT1 and being a part of the strategy to become a major North American lithium chemical supplier in Canada.”

Established value chain

EcoPro Innovation is recognised globally for its fully-established value chain for lithium cells covering the development, manufacturing and processing of lithium compounds.

The company is actively expanding this value chain, with planned production expected to increase from the current 180,000 tons of battery materials to 710,000t by 2028.

EcoPro is constructing two plants in Hungary and Canada, with both scheduled to be completed and operational before construction begins on the proposed lithium conversion facility in Canada, which will produce lithium hydroxide.