I think it is excellent news for us but for different reasons.
We know the electric vehicle (EV) tsunami is coming and it’s not hard to visualise it in our periphery. Take the recently formed Dutch automotive manufacturer Stellantis, headquartered in Amsterdam, Netherlands which was only formed 6 months ago.
As with other car companies who are moving quickly to put out EVs and the marketplace becomes more crowded, with startups such as Rivian Automotive and Lucid Motors Inc. moving closer to selling their first plug-in models, Stellantis needs to prove to its investors that the company’s
vast fleet ambitions are real and will be available in a timeline that is on par with its industry rivals.
Therefore, it does seem like Renascor's management made fortuitous connections with Dutch organisations many years ago which may now be about to come to fruition. So, I've taken the liberty of joining the Dutch dots. They are as follows:
- Renascor has an in-principle letter of support from Atradius. A Dutch government-backed finance organisation that administers the Dutch export credit guarantee scheme (ECA cover). The Siviour graphite project qualified for the scheme based on the sourcing of Dutch content through Renascor’s international engineering, procurement and construction partner Royal IHC, which is based in the Netherlands.
- Royal IHC also committed an additional $1 million to undertake early project works at Siviour, including metallurgical testing and detailed engineering and design.
- Renascor has a non-binding MOU with Zeto (Jiangxi Zhengtuo New Energy Technology Co) which supplies some of the world’s largest battery makers such as BYD Co. BYD are contracted to supply Stellantis (joint venture with TotalEnergies).
- Renascor has an MOU with Sicona Battery Technologies. Sicona’s Managing Director is Christiaan Jordaan - does he have Dutch connections? Possibly another kind of opportunity to create a potentially new kind of battery product and supply the Dutch industry? Note: Sicona is a private company so it is not obligated to make material announcements about it's next generation batteries but it did make this announcement earlier in the year - Unnamed Global Manufacturer outside of China.
Whatever the case, the Dutch connection is there and appears to be a stronger case than ever. It creates an opportunity and therefore may add extra pressure for our '
Tier1 ESG' Resource which has already meet stage 1 capacity. Our immediate market is North-East Asia where currently 100% suppliers reside, however, if our MOU with Zeto via the BYD backdoor to Stellantis, isn't competition enough, I'm sure other new opportunities will eventuate to add further impetus to this fast-moving industry. Competition between the EV marketplace is heating up and that is the kind of pressure that creates action for
Tier1 Anode Makers. Therefore, they may not be able to hold back their decisions before the Fear Of Missing Out becomes a realistic threat to their immediate marketshare and other players start showing their hand.
Clean Energy is coming fast and this quarter looks a correct assumption for binding offtakes. Exciting times!
DYOR GLTA(patient)H
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