Graphite producer Evolution Energy Minerals has signed a strategic investment agreement, binding offtake agreement and transformational memorandum of understanding (MoU) for downstream collaboration with BTR New Material Group Co, a battery anode producer.
These arrangements between Evolution and BTR are expected, on completion, to position Evolution as a vertically integrated producer of lithium-ion battery anode materials.
The strategic placement to BTR at $0.22 per share will raise $4.9 million from the issue of 22.3 million shares representing 9.9 per cent of Evolution, subject to the satisfaction of certain conditions.
The MoU covers a proposed downstream processing collaboration between BTR and Evolution to produce battery anode materials and BTR’s participation in the financing of the Chilalo graphite project in southeast Tanzania.
The binding offtake agreement is for 100 per cent of Chilalo project’s fine flake graphite for three years, with an option to extend for a further three years.
Evolution Energy Minerals managing director Phil Hoskins said the agreements made with BTR represent a “transformational opportunity” for the company and provides further validation of the Chilalo project’s quality.
“These transactions provide a clear pathway to funding and accelerate Evolution’s transformation from graphite mine developer to a vertically integrated graphite company,” Hoskins said.
“Leveraging BTR’s world-leading commercially proven technology, innovation and Tier 1 customer base is expected to de-risk the proposed Evolution/BTR downstream collaboration and fast-track Evolution’s exposure to the rapidly growing battery anode market.”
BTR senior vice president Chen Xiaodong said the company is pleased that Evolution will become BTR’s main overseas natural graphite partner.
“Our close cooperation will not only help our companies achieve further global coverage in production and vertical integration, but also contribute to the innovation of lithium-ion materials and support the development of the global new energy industry,” Xiaodong said.