Vancouver-based FPX Nickel Corp. entered into a non-binding memorandum of understanding (MOU) with the Japan Organization for Metals and Energy Security (JOGMEC) and Prime Planet Energy & Solutions (PPES), a joint venture between Toyota Motor (NYSE:TM) Company and Panasonic (OTC:PCRFY) Corp., on Thursday. The MOU is aimed at exploring collaborative opportunities for the vertical integration of nickel production, which would involve the development of FPX's Baptiste nickel project and the production of nickel sulphate and cathode active materials for the PPES supply chain.
According to the terms of the MOU, all parties will work together to share technical information and expertise and explore potential strategic arrangements and business structures. Any potential binding agreements among the parties could provide FPX with additional funding to advance the Baptiste Project, including preparing a feasibility study and activities relating to the environmental assessment and permitting processes. However, as the MOU is non-exclusive and non-binding, there is no certainty that a binding commercial agreement among the parties will arise from this framework.
FPX president and CEO Martin Turenne expressed his satisfaction with the new partnership, highlighting the strategic importance of the Baptiste Project in producing ideal nickel feedstock for battery supply chains. He also emphasized his anticipation for collaboration with their Japanese partners to support North America's critical minerals ecosystem.
Prime Planet Energy & Solutions, a joint venture established in April 2020 by Toyota Motor Corporation (51%) and Panasonic Corporation (49%), echoed Turenne's sentiment. By combining FPX's low-carbon nickel mining process with PPES' battery knowhow and technology, they aim to achieve further decarbonization and cost reductions in this field.
The Baptiste Project in central British Columbia could play an important role in this collaboration. According to FPX Nickel's recently completed pre-feasibility study, the project could produce an average of 59,100 tonnes of nickel per year over a 29-year mine life. While production is unlikely before the end of the decade, FPX aims to start environmental assessment work next year, with potential construction beginning by 2028 and first nickel production by the end of 2030.
This corporate agreement aligns with a separate intergovernmental deal signed during Japan industry minister Yasutoshi Nishimura's visit to Ottawa. As part of that accord, the Canadian and Japanese governments pledged to collaborate to strengthen their battery supply chains.
Prior to this MOU, FPX had announced a Global Generative Exploration Alliance with JOGMEC on April 3, 2023. Funded solely by JOGMEC, the alliance is designed to carry out worldwide mineral exploration activities for the identification and acquisition of high-quality properties prospective for the same style of awaruite nickel mineralization as contained at FPX's flagship Baptiste Nickel Project.
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