Shares in Renascor Resources Ltd (ASX: RNU) were trading 10% higher after the company said it had started processing graphite through its demonstration plant, in a major milestone for the critical minerals aspirant.
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Value-added graphite targeted
The company is aiming to become a supplier to the global battery supply chain, mining graphite from its Siviour deposit on the Eyre Peninsula, then processing a "purified spherical graphite" product for export.
The critical minerals company said on Monday:
The introduction of graphite and reagents into the integrated purification flowsheet marks the commencement of graphite processing under operating conditions at the demonstration plant. These activities are intended to demonstrate the ability to produce battery-grade graphite using Renascor's HF-free purification process, which is designed to achieve the purity requirements for lithium-ion battery anodes without the use of HF (hydrofluoric acid) while supporting a more environmentally sustainable and cost-competitive purification pathway. The campaign will also support the generation of qualification samples for prospective customers.
Renascor said all of the major process systems had now been operated at target operating parameters.
The company added:
Activities are progressing in line with schedule, with the current phase focused on validating operation of the integrated purification flowsheet under operating conditions. This phase is expected to continue into the next quarter before larger operating runs aimed at generating optimised operating data and larger-scale qualification samples for prospective customers.
Renascor Managing Director David Christensen said:
The commencement of graphite processing through our integrated purification flowsheet represents an important milestone for the PSG demonstration plant and the broader development of Renascor's downstream battery materials strategy. For the first time, we are operating the process under production conditions with graphite and reagents, with the objective of demonstrating the production of battery-grade graphite and generating qualification material for prospective customers. The demonstration plant was built to validate our HF-free purification process, generate operating data and support customer qualification programs. The activities now underway are an important step in demonstrating that capability and progressing toward commercial-scale production.
Government-backed strategy
The demonstration plant was built with the aid of a $5 million grant from the Australian Government under its Critical Minerals Program.
Renascor said it believed its process "has the potential to provide a commercially competitive and more environmentally sustainable alternative to conventional purification methods through lower reagent consumption, reagent recycling and reduced environmental handling requirements''.
Renascor shares were up 10% to 5.5 cents on Monday. The company is valued at $127.3 million.
