Firebird Metals Ltd (ASX:FRB, OTC:FRBMF) is moving closer to realising its vision of becoming a global manganese industry leader having made a number of key achievements in the past 12 months with more coming on the road to near-term high-purity manganese sulphate (MnSO4) production.
In a letter to shareholders, Firebird managing director Peter Allen reflected on a period of “remarkable transformation and progress” and outlined plans for the next six months, stating: “Our commitment to entering the high-purity manganese sulphate market is central to our vision for this new era, recognising its critical role in the growing clean energy sector.”
LMFP battery potential
He said that through extensive research and networking in Australia and China, Firebird had identified the immense potential of lithium manganese iron phosphate (LMFP) batteries, a technology renowned for its benefits in safety, cost and performance.
"The year 2023 marked a significant milestone for this technology, as the commercialisation of LMFP batteries took off, positioning us perfectly to capitalise on this wave of innovation and demand.
"Experts foresee the LMFP market surpassing US$20 billion by 2030, and we are committed to rapidly evolving within this innovative market."
HBFT central to strategy
Central to Firebird’s manganese strategy is Chinese subsidiary Hunan Firebird Battery Technologies Co. Ltd (HBFT), which it established on November 1, 2023, after a thorough investigation of potential sites for a potential manganese sulphate plant, which included visiting 10 industrial parks across several provinces.
A home was found in the Jinshi High Tech Industries Development Zone in Hunan Province, a region that is not only a hub for China's lithium-ion battery industry but also a major centre of technical expertise and innovation in processing battery raw materials.
Testing at the Firebird pilot plant.
Milestones passed
Allen said that the company had made significant strides in the execution of its strategy in just eight months, including a number of milestones:
Establishment of a world-class technical team - Led by Zhou Qiyun, the technical team boasts extensive manganese operational and process experience. Mr Zhou and his team have successfully run high-purity MnSO4 commercial productions and consulted for many industry participants.
Firebird’s engineers also specialise in energy recycling and cost reduction designs, exemplified by the 5th Gen Crystallisation Reactor and Firebird-Sunward Kiln.
Completion of successful feasibility study - The study assessed the operational capabilities of producing 50,000 tonnes of High Purity MnSO4 and 10,000 tonnes of Battery Grade Mn3O4 (75,000 tonnes MnSO4 capacity equivalent), with results demonstrating a strong opportunity for Firebird to become a near-term, low-cost battery-grade MnSO4 producer.
This study also demonstrated significant cost, development and operational advantages gained by building a plant and establishing operations in China.
Pilot Plant - The plant was delivered on time, under budget and has been instrumental in demonstrating the feasibility of scaling the company’s unique technology processes to a commercial level.
Progressing critical permits - The permitting process for the plant is advancing well, with the safety permit already received.
The environmental permit is expected within coming weeks and the energy use permit is expected in the September quarter.
These three permits are critical and required to commence construction of the plant.
Top-Tier partnerships – Firebird’s collaboration with China Chemical, a leader in chemical plant design and construction, and the Hunan Chemical Engineering Design Institute, the best in high-purity manganese sulphate project design, demonstrates the strength of its partnerships and strong levels of support it has in China.
Leading innovation - To maintain the company’s industry-leading position and achieve the lowest energy consumption, Firebird says innovation is crucial.
“Our 5th Gen Crystallisation Reactor consumes less than 1/10th of the energy used by some competitors. The Firebird-Sunward kiln, another prime example, is expected to have energy use 1/6th that of conventional kilns, with the pilot plant due for delivery in late August,” Allen said.
Firebird-Sunward kiln.
Financing agreement - In early 2024, Firebird announced a non-binding financing agreement with China Construction Bank (Jinshi Division), securing 50% of the estimated plant capex requirements of US$83.5 million and 70% of the estimated working capital of US$10.6 million.
Allen said this significantly de-risked Firebird’s financing profile and highlighted the opportunity it had in China to rapidly grow into a near-term, low-cost producer.
Government support - The Jinshi Government has and continues to actively assist Firebird in the permitting process, offering substantial financial incentives, including a 62.5% land rebate in cash within 60 business days and six years of tax incentives from commercial production.
Progress has been achieved within budget, with costs significantly lower than Firebird’s peers in both time and cost.
Investor site visits – Allen said a particularly memorable moment this year was hosting two investor site visits to its Chinese operations, “showcasing our developments and introducing our expert technical team”.
Upcoming milestones
The managing director said that during the next six months Firebird and HFBT would focus on delivery of the following milestones:
Oakover Project
Allen’s letter also included an update on progress at the Oakover Project, stating: "Since our listing in 2021, we have made significant strides at our flagship Oakover Manganese Project in Western Australia.
"We are preparing this tier-one and sizeable project to feed directly into our Battery-Grade Sulphate Plant in China.
“Currently, we are working through environmental studies and surveys, setting the stage for the next phase of growth at Oakover."
Summary
In summary, the managing director said: “The journey towards creating long-term shareholder value is continuous, and we are committed to executing our plans efficiently across China and Western Australia.
“Our growth strategy aims to strengthen our position in the domestic and international manganese markets, characterised by significant efforts across our LMFP battery strategy and the development of Oakover.
“As we look forward to the next financial year, our commitment to near-term MnSO4 production remains unwavering.”