Battery Race Drives Renascor Resources Share Price Higher (ASX:RNU)

The prospective graphite miner Renascor Resource Ltd [ASX:RNU] share price is trading higher today thanks to developments at its Siviour Battery Anode Material Project in South Australia.

Currently the RNU share price is up 4.35% to trade at 7.2 cents per share after the company said it’s on track to become the world’s first integrated, in-country mine and purified spherical graphite (PSG) operation outside of China.

ASX RNU Share Price Chart - Renascor Resource Ltd SharesSource: TradingView

 

Things have been heating up for the ASX’s potential battery material suppliers, with Lake Resources NL [ASX:LKE] and Hawkstone Mining Ltd [ASX:HWK] also coming out with big announcements this week.

Not a lithium play

Unlike LKE and HWK, RNU is not a lithium play, but it does hold a material that is crucial to lithium-ion batteries.

Instead, RNU owns a resource of PSG.

Spherical graphite is the key component of the anode of a lithium-ion battery. Without it, the battery would not function.

The spherical shape of the graphite allows for more efficient packaging of particles in the battery’s anode, which increases the energy and recharge capacity.

Today RNU announced recent flotation optimisation test work that shows improved graphite purities and recovery.

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The purification process has been verified by German industrial processing specialists Dorfner ANZAPLAN, achieving a purity of 99.98% carbon.

The industry standard for anodes is 99.95% carbon.

RNU says the optimisation presents opportunities for higher plant productivity and lower unit operating costs for its graphite concentrate operation.

Managing director David Christensen commented on the milestone:

Recent developments at the Siviour Battery Anode Material Project place Renascor on track to construct, in Australia, the first integrated, in-country mine and Purified Spherical Graphite operation

Renascor’s strategy to source Graphite Concentrate from our 100% owned, South Australia-located, Siviour Graphite deposit and then convert that feedstock to Purified Spherical Graphite at our Battery Anode Manufacturing Facility, also located in South Australia, gives rise to significant cost, ESG and security of supply advantages.

‘… On offtake, inbound enquiries from globally recognised battery anode manufacturers and trading companies for Siviour PSG have been strong, and we look forward to providing further updates as we progress these discussions.

Government backs Renascor

RNU said it has also received letters of support from all levels of government, as well as numerous community and regional groups, in relation to its Siviour Project.

It has also received support from the Clean Energy Finance Corporation (CEFC), a government organisation that invests in the development of clean energy technologies.

RNU says it will progress to more detailed discussions with CEFC in relation to the potential provision of financing for the project.

If RNU does eventually reach some sort of financing agreement with CEFC, that could have big implications for the RNU share price. And potentially help to de-risk the project.

Regards,

Lachlann Tierney,

For Money Morning

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Lachlann Tierney is an Analyst for Money Morning and has been investing for nearly a decade. With a Masters of Science from the London School of Economics, he brings a sound understanding of global markets to his writing. Lachlann is interested in emerging technologies, energy solutions and helping people invest their money wisely. Recently he has been working with Ryan Dinse. Lachlann is involved in two publications:


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