Hi Names Little.
Last year I had some correspondence from DC that you and others might find of interest:
Thanksfor your message.
Youraise a number of issues below that are essentially related to whether ourgraphite is suited for use in lithium-ion batteries. The short answer is,yes – our graphite is absolutely suited for use as in lithium-ion batteries andthis has been confirmed and verified several times over (probably mostimportantly, by anode companies).
Asyou may be aware, we released some battery testing results in 2018 (https://renascor.com.au/wp-content/uploads/2018/04/2018_04_17_ASX-Announcement-re-Battery-Anode-Test-Results.pdf). These tests were meant to establish whether our graphite could be used inlithium-ion batteries and to attract interest from anode manufacturers. Part of these initial tests included testing the initial charge and dischargecapacity. This is important to establish whether our graphite has a propercrystalline structure to be suitable to be shaped, purified and coated so thatit can be used in conventional, high quality lithium ion battery anodes. In our case, the results were quite positive and showed that our initial chargeand discharge capacity exceeds the threshold of high quality lithium ionbattery anodes. The alternative we sometimes see is that some graphitehas, for example, an amorphous structure that is not amenable to the productionof conventional lithium-ion battery anodes. You might think of theseinitial battery tests as an initial hurdle; if you can demonstrate a passableresult, you move to the next step. In the case of many graphite deposits,you can see that these kinds of initial tests are an important step in movinginto the anode space (and many other companies have announced these resultsfrom similar tests).
Youask about performance after long cycle testing and comparisons to syntheticanode material. This is an important aspect of the quality of activeanode material (AAM), and it’s largely a function of what happens to graphiteconcentrates (that meet the initial charge and discharge capacity). Morespecifically, graphite concentrates are generally spheronised and purified totight specifications, and then anode manufacturers coat with pitch to createAAM. Here the charge and discharge capacity are dependent on meeting thephysical and chemical specifications and on the anode manufacturers’methods for coating. The most relevant variable here is how theanode companies coat. If an anode company can coat conforming sphericalgraphite, then the AAM that it creates should have charge and dischargecapacities that are comparable with (if not superior to) synthetic anodematerial.
Inour case, after we released the 2018 results, we started to attract more directinterest from anode companies. We then supplied our graphite to the anodecompanies to permit them to test the material themselves. The anodecompanies, as you might expect, have to follow very stringent testing to ensurethat they can create AAM that meets battery specifications. This includes,among several things, performing long cycle testing (after they have coatedspherical graphite) to ensure that the performance of the natural AAM iscompatible with battery standards. In our case, we have gotten positiveresults from these tests, as we announced to the market previously (e.g., https://renascor.com.au/wp-content/uploads/2021/01/20200112-First-Stage-Product-Qualification-with-Offtake-Partner-2164326.pdfand https://renascor.com.au/wp-content/uploads/2021/02/20210211-First-Stage-Offtake-Qualification-of-PSG-Production-2175171.pdf).
Themore nuanced question is whether we can produce high-quality graphite products(meeting customer specifications) efficiently (i.e., at a competitive cost),and this is where we believe we have a distinct competitive advantage in beingable to produce amongst the lowest price graphite concentrates globally andquite possibly the lowest priced spherical graphite outside of China. Agreat deal of the work we are undertaking now is meant to prove up thiscompetitive advantage
Ihope the answers your questions. If you have any further queries, pleaselet me know.
Kind regards,
David
David Christensen
MANAGING DIRECTOR
Level 5, 149 Flinders Street
Adelaide, South Australia 5000
Australia
