THE BOURSE WHISPERER: Sayona Mining (ASX: SYA) has signed a non-binding Memorandum of Understanding (MoU) with leading China based battery manufacturer, Huan Changyuan Lico Co Ltd.
Changyuan, a subsidiary of the Fortune 500 Company, China Minmetals Group, is a battery research, development, and production company.
According to Sayona Mining Changyuan produced more than 16,000 tonnes of battery cathode materials in 2016 and is expanding its production capacity to 36,000 tonnes in 2018.
The main products produced by Changyuan include, lithium cobalt oxide and lithium manganese oxide batteries, and ternary composite lithium-ion cathode materials.
Sayona declared the MoU provides and avenue for advancing discussions to facilitate a development alliance exploring marketing, technical and financial opportunities for the company’s Authier project located in Quebec, Canada.
Changyuan purchasing up to 100,000 tonnes of spodumene concentrate per annum;
Development partnerships for the value-adding of the concentrates into lithium carbonate and/or lithium hydroxide in either China or Canada; and
Funding and investment opportunities for Sayona and the Authier project.
“The company has been exploring a number of options on how it best realises value from the Authier project,” Sayona Mining chief executive officer Corey Nolan said in the company’s announcement to the Australian Securities Exchange.
“The alliance with Changyuan represents a timely, exciting path forward as the company moves towards completing its Definitive Feasibility and meeting its objective of producing first concentrates in 2019/2020, and capitalising on the projected high price environment for spodumene concentrates.”