The Mineral Commodities Limited (ASX: MRC) share price is edging higher in morning trade, up 1.6%.
Mineral Commodities entered a trading halt yesterday pending today's announcement. We take a look at the details of the ASX resource share's announcement below.
What did Mineral Commodities report this morning?
Mineral Commodities shares are moving higher after the company reported it has entered into a non-binding Memorandum of Understanding (MOU) with Swedish-based Superior Graphite Co.
The MOU is the first step towards forming a 50:50 Joint Venture (JV) between the 2 companies. The JV would enable Mineral Commodities to use Superior's thermal purification facility in Sundsvall, Sweden.
Mineral Commodities plans to use Superior's electro-thermal purification technology to purify its natural flake graphite. The company will immediately undertake a period of due diligence on the Sundsvall facility. It reported the facility has all the required key infrastructure in place along with experienced operating personnel and management.
According to the release, the JV could produce approximately 15–20,000 tonnes per annum (tpa) of Sustainable Graphite Anode Material. The company intends to sell the product primarily to European battery manufacturers who are looking for supplies outside of China.
Commenting on the MOU, Mineral Commodities Chairman, David Baker said:
The JV would provide MRC with a faster route to vertical integration for greater margin capture, reduced technology risk and capex while maintaining our commitment to produce the most sustainable graphite anode material possible.
Superior's CEO, Edward Carney added, "We are excited to partner with MRC to leverage our leading intellectual property and existing Sundsvall operations synergistically into the European battery anode market at this crucial time in demand for clean energy materials."
Mineral Commodities share price snapshot
Mineral Commodities shares are up 21% over the past full year. By comparison, the All Ordinaries Index (ASX: XAO) is up 31% over that same time.
Year-to-date the Mineral Commodities share price is down 13%.
