Nov 26, 2020

New supply deal for NQ battery materials plant

New supply deal for NQ battery materials plant

Pure Minerals has announced a deal to supply battery maker Samsung SDI with nickel products from its Townsville plant.

Samsung SDI is seeking to purchase up to 6000t per annum of contained nickel from the TECH (Townsville Energy Chemicals Hub) project.

Pure Minerals chief executive officer Stephen Grocott said the company was consistently gaining traction with end users who viewed it as a potential part of their supply chain.

The company last month announced that it was looking at scaling up the TECH plant after scoring a major deal with South Korean chemical company LG Chem.

That company wants to buy up to 10,000 tonnes of contained nickel and about 1000 tonnes of contained cobalt from the TECH plant.

That demand goes well beyond the output considered in the TECH pre-feasibility study for a $554 million battery chemicals plant (producing about 6000 tonnes contained nickel and 650 tonnes contained cobalt).

Pure Minerals subsidiary Queensland Pacific Metals this week entered into an agreement with Townsville City Council to secure the site for the plant in the Lansdown Eco-Industrial Precinct.

The plant will process process high-grade nickel and cobalt ore imported from New Caledonia, where it has an agreement with supply partners.

Pure Minerals today said it had now entered a non-binding Memorandum of Understanding with Samsung SDI for the supply of nickel in a combination of mixed hydroxide precipitate and final battery chemical sulfate forms.

As part of the MOU, Pure Minerals and Samsung SDI have agreed to negotiate in good faith to enter into a binding offtake agreement for the purchase of nickel by Samsung SDI from the TECH project.

The initial term of the offtake agreement will be for three to five years.

“We are delighted at the opportunity to work with Samsung SDI to become a potential customer of the TECH project,” Mr Grocott said.