Date: 28 November
2024
Blencowe Resources
Plc
("Blencowe" or the "Company")
Blencowe joins Elite European
Commission Consortium to Exclusively Supply Graphite Concentrate
for European EV Buses
Strategic Initiative will
bring Substantial Long-Term Benefits to
Orom-Cross
Blencowe Resources (LSE: BRES) is pleased to
announce that it has accepted an invitation to join the prestigious
international SAFELOOP consortium managed under the European
Commission's €100 billion Horizon
Europe Programme,
focussed on the European Union's renewable energy
transition.
SAFELOOP represents a transformative
opportunity for Blencowe and its Orom-Cross Graphite Project in
Uganda, positioning the project as a critical supplier in the
European EV supply chain with exclusive access to premium pricing
contracts, large-scale offtake commitments of up to 100,000 tonnes
annually, and strategic partnerships with tier-one European
gigafactories and EV manufacturers.
These strategic advantages further validate
Orom-Cross as a globally significant project and position Blencowe
to play a pivotal role in the growing demand for critical EV
materials.
Key
Highlights:
·
Exclusive Supplier
Role: Orom-Cross to exclusively supply natural
flake graphite concentrate for all anodes used in SAFELOOP Gen3
Li-Ion batteries, providing a high-quality source for
this critical component.
·
Premium
Pricing: SAFELOOP pricing expected to be
significantly higher for graphite than for similar concentrate sold
into Asian markets.
·
Large-Scale
Offtakes: The programme targets up to 100,000
tonnes annually of small flake graphite at full ramp-up, providing
a valuable long-term annuity income stream for Blencowe.
·
Strategic
Partners: Close collaboration with a European
Gigafactory, EV bus OEM, and other key partners and potential
funding parties, all present further opportunities for
Orom-Cross.
·
Green
Credentials: Orom-Cross graphite to undergo EU
Green Passport evaluation, enhancing other future offtake
opportunities within the European and North American
markets.
Further Details on AETC and other Downstream SAFELOOP
Partners
Blencowe's US technical partner, American Energy Technologies
Co. ("AETC"), will will play a pivotal role in
processing Orom-Cross graphite into battery-ready anode
active materials. This collaboration ensures high-quality,
fully integrated production within SAFELOOP, aligning with the
programme's focus on advancing European Gigafactory-scale battery
solutions.
AETC, an established premium performance
graphite processor, has conducted over 24 months of rigorous
testing on Orom-Cross end-products in the United States,
including pilot-scale and production-scale
work. Anode materials will be produced and
delivered by AETC to the SAFELOOP-designated Gigafactory
ASPILSAN of Kayseri, Turkiye. ASPILSAN will manufacture
Gen3 Li-Ion batteries, which will be supplied to transport
manufacturing specialist, BOZANKAYA of Sincan, Turkiye,
for integration into EV buses.
This process has confirmed the exceptional
quality of Orom-Cross graphite, aligning it perfectly with the
stringent requirements of the SAFELOOP programme.
Following a competitive evaluation Blencowe was selected as
the exclusive natural flake graphite concentrate supplier for the
SAFELOOP Project.
This partnership underscores the value of
Orom-Cross's graphite as a critical input for high-performance
battery anodes, while also enabling robust market opportunities
through secure, premium pricing contracts.
Executive Chairman Cameron Pearce commented:
"We are
delighted to join the high profile SAFELOOP Project, positioning
Blencowe at the heart of Europe's transition to renewable energy.
Being chosen as the exclusive natural flake graphite
concentrate supplier for SAFELOOP provides a potentially huge
offtake opportunity ahead that can provide a valuable annuity
income stream for our Company and long term value for
shareholders.
"This
selection is a testament to the high quality of Orom-Cross and the
critical role it will play in the EV supply chain. The association
with SAFELOOP also opens significant opportunities for Blencowe to
further strengthen its position as a leader in the global graphite
market, and, once again, setting our Project and our Company apart
from our peers."
AETC Manager of Government Relationship, Anna Doninger
commented:
"We are delighted that AETC was chosen as the processor of
choice for two prestigious European Commission funded initiatives,
STREAMS and SAFELOOP. Through these programs we are recovering,
rejuvenating, and returning recycled graphite into the European
lithium-ion battery supply chain, as well as processing primary
feedstocks based on natural crystalline flake graphite and
synthetic graphite precursors into anode active materials in
advanced lithium-ion batteries for automotive
applications."
"Natural crystalline flake graphite from Orom-Cross has
consistently demonstrated exceptional quality in AETC's pilot and
production scale test work conducted to date. The properties of
Blencowe's concentrate align perfectly with the expected demand for
the European
Gigafactory Li-Ion battery cells and exceed the EUCAR Hazard Level
3 standards for EV mobility applications, as required within
SAFELOOP. We are delighted to be working with
Blencowe on this executive action and we are confident of a
successful outcome of work planned as part of
SAFELOOP."
Vox Markets
Interview
For further insights on Blencowe's
transformative role within the SAFELOOP initiative and the
significance of this partnership for Orom-Cross, listen to CEO Mike
Ralston's latest interview with Vox Markets:
https://www.voxmarkets.co.uk/articles/interview-with-mike-ralston-ceo-of-blencowe-resources-59b4c8a
SAFELOOP Media
Links:
European Commission Factsheet: https://cordis.europa.eu/project/id/101147342
SAFELOOP's website: https://www.safeloop.eu/;
SAFELOOP Profile in x:
x.com/SAFELOOP_EU)
SAFELOOP LinkedIn
Profile:
www.linkedin.com/company/104652691
https://www.linkedin.com/feed/update/urn:li:activity:7237016010069786627
About Project SAFELOOP
In our mobile society the demand for
energy storage solutions has never been more critical. As we strive
to build a sustainable future relying on renewable energy sources,
the need for efficient and reliable energy storage becomes
paramount. This is where EC's new executive action, SAFELOOP, aims
to make big strides contributing to the EU's ambition to make
Europe the first climate-neutral continent by 2050.
SAFELOOP stands for Securely Advancing Future EVs with Li-Ion
batteries through Optimized Pathways. The Project's primary
goal is to elevate the safety, sustainability, and performance of
European Gigafactory scale Li-Ion Battery cells, aligning with the
EUCAR Hazard Level 3 standards for mobility applications. Beyond
enhancing EU battery safety, the project seeks to develop the
world's first Electric Vehicles-rated Li-Ion Battery using up to
25% recycled and fully rejuvenated battery-active materials.
SAFELOOP has received an initial €5 million EU
grant for initial project development work, supporting these
pioneering efforts.
SAFELOOP project officially started
in Oulu, Finland in June 2024. This was the first meeting for the
15 partners that make up the consortium of the project, and an
opportunity to set a strong foundation within the project for the
36 months of collaboration and development to come.
SAFELOOP is funded by the Horizon
Europe - European Union's flagship research and innovation funding
program, with a budget of €100 billion. SAFELOOP is also a proud
contributor to the BATT4EU partnership. Through its activities
BATT4EU aims for the widespread adoption of e-mobility (EVs and
E-buses) and stationary electrical energy storage. SAFELOOP will
particularly support Batt4EU's specific objective on the
development of differentiating technologies in battery materials,
cell design, and manufacturing and battery recycling.
The 36-months-long timeline of SAFELOOP action
aligns closely with Blencowe's strategy to bring Orom-Cross into
production by 2026 and ramp up thereafter. There is minimal
cost to Blencowe within this test phase to be part of this
initiative, and ultimately the Orom-Cross deposit is large enough
to meet all anticipated graphite demand anticipated for SAFELOOP
plus all other offtakers.
The ramped up
SAFELOOP target requires up to 100,000 tonnes of natural flake
concentrate annually and will provide Blencowe with a substantial
offtake commitment from a tier one western offtaker. The indicative
pricing for supply of small flake concentrate into SAFELOOP is more
than double of what that same product currently sells for into
Asian markets, making SAFELOOP a very valuable future initiative
for Orom-Cross to be involved within.
Of note, the non-spherical portion
of graphite generated with Blencowe's precursor will be upgraded
and incorporated into cathodes of Gigafactory-scale-made
lithium-ion batteries and into positive and negative electrodes of
hybrid ultra-high-power supercapacitors by SAFELOOP Consortium
Partners. The ability to use spheroidization process rejects in
premium energy systems applications is the key to justifying the
higher prices that will be paid for Blencowe's concentrate for
processing within AETC's Inverted Flowsheet Technology.
Yields of close to
100% are anticipated when spherical and non-spherical graphites are
added together, a prerequisite for cost leadership in advanced
materials production even at moderately increased cost of graphite
concentrate raw material.
Blencowe has entered a vendor-processor
collaboration relationship with AETC ensuring exclusivity for the natural flake graphite component used
within SAFELOOP. Work is already underway and will provide
at least two Gigafactory scale lithium-ion 18650 battery cell-based
manufacturing campaigns which will power EV buses. At the project
onset, the SAFELOOP action requires Orom-Cross supplying 1000kg of
small flake concentrate to AETC which has been
completed.
As part of this testing phase Blencowe will pursue EU
green passport evaluation for its graphite product, through an EU
certified test center in Poland and through Imperial College
London. This accreditation will have significant implications for
future EU graphite sales and will provide additional marketing,
commercialisation, and business development opportunities.
For further information please
contact:
Twitter https://twitter.com/BlencoweRes
LinkedIn https://www.linkedin.com/company/72382491/admin/
Background
Orom-Cross Graphite
Project
Orom-Cross is a potential world class graphite
project both by size and end-product quality, with a high component
of more valuable larger flakes within the deposit.
A 21-year Mining Licence for the project was
issued by the Ugandan Government in 2019 following extensive
historical work on the deposit and Blencowe is now within the
Definitive Feasibility Study phase as it drives towards first
production.
Orom-Cross presents as a large, shallow
open-pitable deposit, with a maiden JORC Indicated & Inferred
Mineral Resource deposit of 24.5Mt @ 6.0% Total Graphite Content.
Development of the resource is expected to benefit from a low strip
ratio and free dig operations, thereby ensuring lower operating and
capital costs.
In 3Q 2024 Blencowe introduced a Joint Venture
concept with experienced downstream graphite processing partners to
ultimately produce upgraded 99.95% SPG (spheronised, purified
graphite) in Uganda. This strategy has several key advantages
including additional returns and substantial cost savings which
will assist deliver a world class project once DFS is
completed.
Blencowe also announced full Minerals Security
Partnership (MSP) accreditation in 2024 which provides additional
tier-one credibility plus further support from this highly
influential quasi-Government organisation. Together with the
US$5 million grant funds received from the US Government in 2023
via the Development Finance Corporation, the Company is building
unique and solid relationships to assist with funding solutions for
Orom-Cross project implementation.
