St George Mining Ltd (ASX:SGQ) is looking to team up with global battery manufacturer SVOLT Energy Technology Co., Ltd to advance its flagship Mt Alexander Lithium Project and to invest in new lithium business opportunities.
The mining company has entered into a Memorandum of Understanding (MoU) with SVOLT, which could see the China-based company investing $5 million to become a shareholder in St George, as well as securing up to 25% of potential spodumene concentrate from Mt Alexander.
“We are excited to announce a strategic relationship with SVOLT, one of the giants in the global EV battery market,” St George Mining’s executive chairman John Prineas said.
“High-grade lithium commences from surface at Mt Alexander as confirmed by assays of the pegmatite outcrop, so far sampled across a broad area that spans 1.7 kilometres north-south and more than 3 kilometres east-west.
“With drill programs in progress and further field sampling underway, there is excellent potential for the footprint of high-grade lithium mineralisation to significantly increase across the more than 15-kilometre-long pegmatite corridor controlled by St George.
“Under the strategic relationship, we will also consider new project generation in Western Australia creating another potential growth engine for our respective companies,” Prineas added.
Attractive proposition
The signing of the MoU complements a similar strategic relationship between St George and Shanghai Jayson New Energy Materials Co., Ltd, the world’s leading producer of cathode precursor materials for lithium-ion batteries.
“St George’s ability to attract blue-chip partners like SVOLT and Jayson speaks volumes to the potential of Mt Alexander,” Prineas said.
SVOLT will provide technical advice for the marketing of lithium products as well as development funding to accelerate the exploration and development of Mt Alexander.
The company will have the right to appoint a director to the board of St George if it holds more than 5% of the latter.
Industry-leading credentials
SVOLT has been engaged in battery research and development (R&D) for more than 10 years. It was established as an independent battery manufacturer in 2018 following a spin-off from Great Wall Motor Company, one of the world’s largest vehicle manufacturers.
Today, the company has more than 10 manufacturing bases, including plants established or under construction in China and Germany, and extensive R&D centres in China, Germany, Korea and India.
In addition to being one of the world’s largest battery manufacturers, SVOLT is recognised in the industry for pioneering cobalt-free batteries, which have high-safety and low-cost attributes.