China Battery Grade Manganese Sulphate Plant Location Selected and Agreement Signed

Advanced Manganese developer Firebird Metals Limited (ASX: FRB, “Firebird” or “the Company”) is pleased to announce the delivery of another major milestone for its LMFP Battery Strategy, through the completion of an agreement for industrial land with Jinshi local government for the Company’s battery grade manganese sulphate plant. The agreement covers land allocation, tax incentive structures, land rebates for the plant and options for future plant expansions.

HIGHLIGHTS

• Preferred location for battery grade manganese sulphate plant secured and will be situated in the Jinshi High Tech Industries Development Zone, Jinshi, Hunan province, China
• Agreement with Jinshi local government covers land allocation, tax incentive structures and land rebates. Land agreement also covers options for future plant expansions
• Hunan is central to China’s growing Lithium-ion battery industry and is a dominant LFP cathode production region, with significant plans for LMFP (Lithium Manganese Iron Phosphate) conversion
• Current China-based battery grade manganese sulphate Pre-Feasibility Study (PFS) to be based on Hunan plant location. PFS progressing as planned and expected to be announced in Q1 2024
• Advanced and commercialised crystallisation technology secured, providing a key operation and cost advantage for Firebird
• Proven 5th generation technology - already in operation at other China-based plants - enables significant energy cost reductions for MnSO4 production
• R&D facility including the pilot plant remains on schedule with all key material ordered. Expected to be operation in Jan 2024
• R&D plant to be located in nearby Jinshi City. The Jinshi High-Tech Chemical Park has connecting river access to the Yangzte river, which provides very efficient and low-cost transportation routes for raw materials and product

Image 1: Pilot plant land agreement signing with Jinshi local government

Commenting on the signing of the land agreement in China, Firebird Managing Director Peter Allen said, “We are extremely pleased to be making rapid progress on our LMFP battery strategy, as we remain well on schedule with our strategic objective of growing into a near-term producer of high-purity manganese sulphate for the battery market.

“The completion of the land agreement and establishment of a pilot plant in the Jinshi area brings substantial value to the Company, as we gain access and exposure to some of the world’s largest EV battery manufacturers and investors in LMFP batteries. The location of our battery grade manganese sulphate plant in Hunan also places Firebird at the epicentre of manganese sulphate demand in China.

“We expect our R&D and pilot plant to be operational by Q1 2024 and once complete, we will look to commence key pre-qualification activities with cathode producers. Importantly, our on-the-ground activities will be managed and led by an experienced in-country team headed by Mr Zhou, COO of our Chinese subsidiary, Hunan Firebird Battery Technology Co Ltd.

“We look forward to sharing updates on further strategic milestones, including the results of the manganese sulphate PFS expected in Q1 next year.”

Firebird considered various facets of the LMFP battery strategy and visited several sites when determining the right location for the sulphate plant. Key factors for site location included availability of sulphuric acid, steam, key reagents, and proximity to customers, transportation routes and factory residue consumers.

Hunan is a leading battery metals region, a major Chinese hub for existing and planned cathode and cell capacity and provides Firebird with direct access to rapidly growing gigafactory development. Due to these key competitive advantages, along with the key location criteria mentioned above being met, the Company selected the land available within the Hunan region as the location for its sulphate plant.

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