Blackearth Minerals signs MOU with Urbix to fastrack downstream graphite production

Blackearth Minerals NL (ASX:BEM) has signed a collaborative memorandum of understanding (MOU) with leading downstream graphite processor Urbix, Inc to initially supply its high-grade graphite concentrate to Urbix’s downstream processing facility in the USA (once the facility is completed). The company will fast track the development of its Maniry Graphite Project in Madagascar with the bankable feasibility study (BFS) currently underway. Blackearth will also source other high grade graphite concentrate to supply to Urbix as part of the terms of the MOU. The parties also plan to develop an operational joint venture in the future – which will combines Urbix’s technical excellence with BlackEarth’s substantial market, commercial and graphite operational experience. ”Demand for value added graphite products” The proposed JV could position BlackEarth as a globally significant supplier of downstream graphite products. BlackEarth managing director Tom Revy said: “The board are delighted to sign off on this MOU with Urbix and we are actively working toward developing an operational JV in the short term. “Clearly there is significant and growing demand for value added graphite projects for electric vehicles and many other applications, and we believe this JV will allow us to enter a growing market, with a world class product, at an exciting time of change of world energy and power demands. “We strongly believe that the technical expertise of the Urbix team combined with our executive team’s experience in graphite production operations and developing supply arrangements world wide, positions us well for an exciting future for BEM shareholders.” Joint Venture plant Following the successful completion of the Urbix plant in the USA, the companies propose a joint venture plant that includes the potential development of a facility in Madagascar or Western Australia that will produce a substantial supply of purified graphite that will be available for the growing battery and alternative energy (EV) markets. Urbix executive chairman Nico Cuevas said: “We‘re pleased to initiate this MOU with Tom and David and the team at BlackEarth Minerals. “They’re experienced and professional and understand the industry thoroughly. “They appreciate the demand for our product, are cognizant of new energy challenges and appreciate our environmentally friendly production methods. “Developing a joint venture that sees Blackearth supply our US plant is a first step toward our companies potentially developing a plant in Madagascar or Australia. “We see this as an important and exciting opportunity for Urbix and we look forward to growing our businesses together.” Blackearth executives have commenced the process of site selection and assessing the most efficient and cost-effective location for the proposed JV plant. Urbix’s North American facility Urbix is one of the premier providers of refined graphite powders, pristine graphene, and specialty graphite products in the world. The company’s advanced technology includes environmentally and cost-conscious purification methods and significant intellectual property developments in a wide range of applications including proprietary Li-ion battery cells, electrolyte, graphene products, cement, and other composites and energy storage materials. Urbix’s proprietary technology purifies graphite in an efficient and environmentally sustainable production method without the use of hydrofluoric acid or high temperature ovens. The company is currently engaged in building what will be one of the largest natural graphite purification facilities in North America which upon completion, the 31,000 square foot facility will have the capability to purify up to 24,000 metric tonnes annually. Urbix’s goal is to be the most significant producer of purified and spherical natural graphite outside of China, and the only truly green producer in the world. Looking forwards Blackearth has advised that the MOU is for a term of 180 days which may be extended by the parties. During this 180 day period, the company proposed to advance its discussions and confirm the commencement of concentrate supply, the volume and value of supplies and all of this detail is proposed to be included in a formal joint venture agreement. BlackEarth is in the process of concluding concentrate supply agreements to meet Urbix’s intital demands and the proposed JV’s initial production demands. This includes off take agreements for the supply of downstream products to a range of global buyers