BlackEarth Minerals NL (BlackEarth or the Company) has signed a graphite supply and marketing agreement with Luxcarbon GmbH, Germany (Luxcarbon).
Luxcarbon is currently one of Germany’s major suppliers of graphite and carbon products to top tier suppliers of Volkswagen, Mercedes, Ford and to major chemical corporations.
BlackEarth, as part of its MOU commitment with Urbix Inc, will use this to secure the supply of up to 25,000 tonnes of high-grade product to assist Urbix in completing their plant development.
The supply arrangement will continue whilst BlackEarth fast tracks the development of its own high grade, large scale graphite properties in Madagascar, which will then form a regular supply to its proposed downstream graphite operations.
The agreement also provides that BlackEarth will sell up to 25,000 million tonnes per annum of downstream products from its operations and joint venture operations into the European market to meet the growing demand for battery EV material.
Luxcarbon will also provide technical advisory services to BlackEarth on the production of downstream products from the Company’s proposed facilities in Australia and/or Madagascar.
Luxcarbon will work closely with the BlackEarth Executive team to further develop supply chain, logistics and sales channels for their downstream graphite production into the expanding electric vehicle and battery markets.
In commenting on the signing of the agreement, BlackEarth’s Managing Director, Tom Revy, said: “The Board are delighted to sign this agreement with Luxcarbon, a leader in the graphite supply and marketing of graphite concentrate and downstream products throughout Europe.”
“This agreement provides a number of great outcomes for BlackEarth. Firstly, it enables us to secure a supply of world-class graphite concentrate that can be supplied to Urbix’s operations in the USA and also our own downstream processing facility whilst we complete the development of our plants in Australia and Madagascar,” he said.
“Secondly, Luxcarbon are leaders in the supply and understanding of downstream graphite products and this will assist us greatly. Members of the Luxcarbon team and BlackEarth Director, David Round, have previously worked extensively together in developing sales and market networks for the supply of substantial quantities of graphite and we are very confident this relationship will ensure similar, positive commercial outcomes for our companies.”
“We are excited at the prospects and opportunities this unique agreement provides to our shareholders,” Mr Revy commented.
BlackEarth’s full announcement can be found here.