What's Happening?
Chariot Resources, an Australian mineral exploration company, has entered into a non-binding memorandum of understanding (MoU) with Shanghai GreatPower to explore collaboration opportunities in the lithium supply chain. The agreement allows GreatPower to purchase up to 200,000 tonnes of spodumene concentrate annually from one of Chariot's projects in Nigeria. This collaboration aims to enhance the production of battery raw materials, with plans to design, construct, and operate a lithium processing plant in Nigeria. The facility will upgrade run-of-mine ore into spodumene concentrate. Additionally, the agreement includes the potential deployment of GreatPower's electric mine trucks and renewable energy solutions, such as photovoltaic solar microgrid
systems with battery storage, to Chariot's assets. GreatPower will conduct due diligence on Chariot's Nigerian assets before finalizing any binding agreements.
Why It's Important?
This collaboration is significant as it strengthens the lithium supply chain, crucial for the growing demand in the battery and new energy sectors. By potentially establishing a lithium processing plant in Nigeria, the partnership could position Nigeria as a key player in the global lithium market. The use of renewable energy solutions and electric mine trucks aligns with environmental, social, and governance (ESG) goals, promoting sustainable mining practices. For Chariot Resources, this agreement represents a strategic move to leverage its early-mover advantage in Nigeria, potentially unlocking significant value from its assets. For GreatPower, it enhances its global footprint in the critical metals sector, supporting its downstream new energy industry chain.
What's Next?
The next steps involve GreatPower conducting due diligence on Chariot's Nigerian assets. Upon satisfactory results, the parties may proceed to a binding offtake or financing agreement. The development of the lithium processing plant will require further exploration, resource estimation, and securing necessary permits. Both companies will continue to evaluate the feasibility of deploying renewable energy solutions and electric mine trucks. The successful implementation of these initiatives could lead to long-term, mutually beneficial outcomes, advancing both companies' positions in the global lithium market.
