Kibaran Resources Signs MOU with Japan's Sojitz

Kibaran Resources Ltd. (ASX:KNL) announced that it’s signed a non-binding memorandum of understanding (MOU) with Sojitz Corp., one of Japan’s largest flake graphite traders. The company views the MOU as a milestone.
Highlights of the MOU include:

The MOU sets out an in-principle understanding for Sojitz and Kibaran to enter into commercial negotiations concerning the following:

• Sojitz to source graphite in Tanzania exclusively from Kibaran’s high grade and wholly-owned Epanko project
• Exclusive sales and marketing by Sojitz, for a range of key applications, in Japan, Korea, Taiwan, China and the United States for Epanko’s high purity natural flake graphite grades
• Entry via Sojitz to the lucrative supply-chain for the fast growing lithium ion (Li-Ion batteries or LIB) battery market
• Unique long-term sales into Japanese and Korean battery anode manufacturers

Andrew Spinks, managing director of Kibaran, commented:

This is a major entry into the battery supply chain given Panasonic is the major partner for Tesla’s gigafactory and importantly, LG Chem recently announced a supply deal with the world’s largest energy storage supply company.
The Sojitz MoU is a major milestone for the Company, providing Kibaran with additional independent endorsement of the quality and commercial appeal of our Epanko natural flake graphite.
This MOU not only supports the development of Epanko but also advances Kibaran’s plans to manufacture spherical graphite, expandable graphite and other value added products for a broad range of industrial applications with forecast significant growth rates.
Recent news of Tesla talking with the German Government over a European gigafactory is very positive for us as we are perfectly positioned to access the ESS market in Europe given our existing strategic alliances in Germany.
It is not yet fully understood by equities markets but lithium ion battery innovation is being led by Japan, Korea, China and Germany, hence our emerging positioning of Kibaran as a major supply chain and alternative supply to mainland China.

Click here to read the full Kibaran Resources Ltd. (ASX:KNL) press release.