Volt Resources Ltd (ASX:VRC, OTC:VLTRF) has inked a Letter of Intent (LOI) with M2i Global, Inc, with the aim of securing a graphite procurement contract with the US Department of Defense (DOD).
Chairman Asimwe Kabunga said: “Volt’s strategy of developing a diversified integrated graphite and battery anode material supply chain continues to gain momentum and the agreement with M2i Global is a continuation of this progress.
Few graphite companies can match growth
“With the ability to supply natural flake graphite produced in Europe and future production from our Tanzanian based Bunyu graphite project, combined with battery anode material production technology advancing in the United States, Volt offers future growth opportunities through the entire supply chain few graphite companies can match.”
The agreement involves the annual supply of up to 20,000 tonnes of graphite, with a purity ranging from 94.0% to 99.5%, for a three-year period. The supply will be facilitated through Volt's subsidiary, Zavalievsky Graphite (ZG).
M2i Global specialises in developing a comprehensive global supply chain for critical minerals. Its subsidiary, US Minerals and Metals Corp, focuses on ensuring access and availability to vital minerals for defence and economic security.
The DOD, acting through its Manufacturing Capability Expansion and Investment Prioritization office, seeks to establish a sustainable and reliable graphite supply for battery production to bolster the country's industrial base.
Key terms of the LOI stipulate that M2i will endeavour to secure the procurement contract for up to 20,000 tonnes per annum (tpa) of graphite for a three-year term.
For its part, Volt commits to delivering graphite of specified purity from its Zavalievsky Graphite subsidiary.
Additionally, if feasible, Volt aims to extend the long-term supply of graphite from its Bunyu Tanzania phase 2 production for M2i customers.
Key supplier to US government
The agreement marks a significant milestone for Volt, potentially solidifying its position as a key supplier of high-purity graphite to the US government, and contributing to the DOD's objective of building a resilient supply chain for national defence.
Volt managing director and CEO Prashant Chintawar said: “Onshoring of energy storage battery supply chain is a priority for US national security. This is especially true for graphite as a Foreign Entity of Concern has over 75% market share.
“This agreement is consistent with our plan to expand ZG customer base and grow ZG business. We are delighted to be working with M2i and look forward to strong collaboration.”
M2i executive chairman Doug Cole said: “Our core mission is fortifying our nation’s precious material supply by providing secure and reliable access to key resources for the United States.
“We are excited to work closely with Volt to advance their vision of setting the benchmark for the integrated supply of superior quality, natural graphite anode material to the growing battery industry.”