REG - Blencowe Resources - Blencowe Joins European EV Consortium

Blencowe ResourcesAnnouncement

28/11/2024 07:00

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RNS Number : 9382N  Blencowe Resources PLC  28 November 2024

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
(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
(https://cordis.europa.eu/project/id/101147342)

SAFELOOP's website: https://www.safeloop.eu/ (https://www.safeloop.eu/) ;

SAFELOOP Profile in x: x.com/SAFELOOP_EU (http://x.com/SAFELOOP_EU) )

SAFELOOP LinkedIn Profile:

www.linkedin.com/company/104652691 (http://www.linkedin.com/company/104652691)

https://www.linkedin.com/feed/update/urn:li:activity:7237016010069786627
(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:

   Blencowe Resources Plc

  Sam Quinn                                                                                              www.blencoweresourcesplc.com

                                                                                                         Tel: +44 (0)1624 681 250

                                                                                                         info@blencoweresourcesplc.com (mailto:info@blencoweresourcesplc.com)
 Investor Relations                                                                                      Tel: +44 (0) 7891 677 441

 Sasha Sethi                                                                                             sasha@flowcomms.com (mailto:sasha@flowcomms.com)
 Tavira Financial                                                                                        Tel: +44 (0)20 3192 1733

 Jonathan Evans                                                                                          jonathan.evans@tavira.group (mailto:jonathan.evans@tavira.group)
 Vox Markets Interview:

 https://www.voxmarkets.co.uk/articles/interview-with-mike-ralston-ceo-of-blencowe-resources-59b4c8a
 (https://www.voxmarkets.co.uk/articles/interview-with-mike-ralston-ceo-of-blencowe-resources-59b4c8a)

Twitter https://twitter.com/BlencoweRes (https://twitter.com/BlencoweRes)

LinkedIn https://www.linkedin.com/company/72382491/admin/
(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.

 

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