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Advanced manganese developer Firebird Metals Limited (ASX: FRB, “Firebird” or “the Company”) is pleased to announce the signing of a non-binding strategic cooperation agreement with China National Chemistry Southern Construction and Investment Co Ltd (ChinaChemical), a large Chinese conglomerate and a subsidiary of China National Chemical Engineering Group Corporation (CNCEC), to collaborate through the development and ultimately building the Company’s high-purity manganese sulphate plant, located in Jinshi, Hunan province, China.
HIGHLIGHTS
- Firebird Metals and leading engineering firm, China National Chemistry Southern Construction and Investment Co Ltd, have signed a non-binding strategic cooperation agreement to collaborate through the development and ultimately building the Company’s high-purity manganese sulphate plant, located in Jinshi, Hunan province, China
- The Strategic Cooperation Agreement states the parties will use their respective strengths to collaborate on the project; covering investment, financing, engineering construction, operational management, industrial research and development, and the production of battery-grade manganese sulphate and tetroxide
- The agreement with China Chemical is a significant validation and endorsement of Firebird’s LMFP battery strategy and Manganese Sulphate project
- China National Chemistry Southern Construction and Investment Co Ltd (China Chemical) is a subsidiary of China National Chemical Engineering Group Corporation (CNCEC) a large Chinese conglomerate
- CNCEC was founded in 1953, has completed over 90,000 projects and is responsible for 90% of all Chinese Chemical Engineering projects
- CNCEC has built and maintains the Jinshi Industrial Chemical Park where Firebird’s sulphate plant will be situated in the Development Zone
Image 1: Firebird Finance Director Wei Li, Managing Director Peter Allen and Zhou Hongkun, General Manager of the China Chemical Hunan Branch, signing of the Strategic Agreement
Under the agreement both parties will use their strengths to collaborate extensively on the project, covering investment, financing, engineering construction, operational management, industrial development, and the production of battery-grade manganese sulfate and tetroxide. This strategic partnership will evolve through mutual consultations, emphasizing advancements in innovative new energy storage battery cathode materials.
Commenting on the signing of the strategic cooperation agreement, Firebird Managing Director Peter Allen said, “We are very pleased to have attracted a partner in China Chemical, a leader in China and internationally when it comes to building high-quality, tier-one chemical projects.
“China Chemical is the right partner for Firebird and we look forward to working collaboratively with them for the development and build of our sulphate plant. China Chemical built and currently maintains the Jinshi Industrial Chemical Park and with our plant to be located in the Jinshi High Tech Industries Development Zone, we have the upmost confidence that the end product with will be of the highest quality.
“We are making excellent progress in China and forming partnerships with industry leaders like China Chemical is a strong endorsement of what we are establishing and validation of our unique LMFP battery strategy.
“We are moving rapidly towards our goal of becoming a near-term, low-cost high-purity manganese producer and the timing of our growth vision could not be better, with LMFP forecast to be the dominant cathode for Electric Vehicle batteries and estimated to grow into a >$US20 billion market by 2030.”
ABOUT CHINA CHEMICAL
CNCEC is a large-scale engineering corporation directly supervised by the State-owned Assets Supervision and Administration Commission of the State Council (SASAC) of China.
CNCEC is not only the founder of China's petroleum and chemical industrial system, but also the provider of advanced industrial solutions. Furthermore, CNCEC is one of the vanguards of "Belt and Road" Initiative, a leader in the field of clean energy engineering, and the construction practitioner of Beautiful China Initiative.
Since 1953, more than 90% of China's chemical engineering projects, and over 50% of China's oil refining and petrochemical projects, were executed by CNCEC.
CNCEC has completed over 90,000 projects across 60 countries worth a total value of ¥312 Billion with 130 overseas branches.
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FRB:AU
Firebird Metals
Overview
Firebird Metals (ASX:FRB) is an Australian mining company that’s well-positioned to develop a new manganese mining operation in Western Australia with a strategy to become a global battery cathode producer supporting a rapidly expanding electric vehicle market.
Batteries currently represent the largest non-alloy market for manganese, accounting for roughly 3 percent of global annual manganese consumption. The metal has a long history of being used as a cathode material in batteries, both in its natural form and in the form of electrolytic manganese dioxide. That includes modern lithium-ion batteries, the supply and manufacturing chain for which could potentially grow by over 30 percent annually from now through 2030.
Manganese-rich batteries are increasingly being held up as an alternative to standard lithium-ion batteries, leading to an expected exponential demand for the mineral. Tesla alone has already committed to producing manganese-based batteries for two thirds of its supply, owing to the metal's relative abundance and lower cost compared to nickel and cobalt.
Lithium-iron-phosphate (LFP) represents one of the most prominent phosphate battery configurations. In recent years, however, the business case for using manganese as a cathode material for lithium-ion batteries, known as lithium manganese iron phosphate (LMFP), has become stronger. LMFP not only improves the battery’s energy density, but also increases capacity by up to 20 percent. LMFP batteries also perform better in low-temperature environments.
As LFP rapidly nears its theoretical energy density capacity, the rise of LMFP batteries as a replacement is all but inevitable as the world continues its slow march towards electrification and sustainable energy. Consequently, this means that demand for battery-grade manganese is set to explode in the coming years. And Firebird Metals is more than ready to step in and provide some much-needed supply.
Firebird maintains ownership over a massive manganese resource in Western Australia's Pilbara region in the form of its flagship Oakover project. Characterised by near-surface mineralisation, Oakover houses an estimated 176.65 million tons (Mt) of manganese across several different targets. Because of Oakover's favourable geology, Firebird can potentially leverage Oakover to supply not just the battery market but also multiple other industries, such as steel, all through a low-cost, simple mining operation.
The end result? Significant returns for investors — a projection only further emphasised by the impressive results returned by a recent concentrate scoping study on the project. Firebird maintains several other projects in Australia as well, including the Oakover-like Hill 616 and the exploration-focused Wadanya.
Firebird's long-term strategy reaches far beyond Australia's borders, however. From mining to downstream processing, the company's vision is to become a global cathode producer. For that, Firebird is looking to China, which to date accounts for roughly 90 percent of global manganese sulphate demand.
In early September 2023, the company announced its plans to establish a processing plant in China, noting to investors that an in-house scoping study was already well underway. According to Firebird's managing director Peter Allen, the construction of this plant represents the next phase of major growth for Firebird. As with the rest of Firebird's operations, this new plant will be constructed with the company's ESG methodology front of mind, ensuring transparency and accountability in addition to human welfare, support for local communities and environmental sustainability.
This plan, should it proceed apace, has the potential to make an enormous impact on global manganese supply — all while positioning Firebird as a cost-competitive player in the manganese sulphate market and a promising investment opportunity.
Company Highlights
- An Australian junior exploration company, Firebird Resources is well-positioned to take advantage of the growing demand for manganese as the rapidly expanding electric vehicle market and global electrification continue to ramp up.
- Firebird maintains ownership of a massive manganese resource in Australia with significant growth potential.
- A recent concentrate scoping study confirmed the potential and profitability of the company's flagship project, Oakover, situated in Western Australia's Pilbara region.
- Firebird's long-term goal involves leveraging its manganese resource to position itself as a leading global producer of manganese sulphate for the battery industry.
- The company is currently embarking on a scoping study with plans to build a manganese sulphate plant in China. This will allow it to gain a foothold in the Chinese market, which currently accounts for 90 percent of global manganese sulphate demand.
- This study represents the next phase of major growth for Firebird, and is a significant part of the company's overall strategy to establish itself as a near-term producer of battery-grade high-purity manganese sulphate.
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