Firebird Metals firms up LMFP battery strategy with Chinese offtake MoUs, Sedgman engagement and Eramet supply deal
Firebird Metals Ltd is advancing its strategy to penetrate the battery-grade manganese sulphate market, particularly targeting China’s growing lithium manganese iron phosphate (LMFP) sector. Throughout the March quarter, the company secured critical partnerships and non-binding offtake agreements that are instrumental for future production.
### Strategic Partnerships and Offtake Agreements
Firebird Metals finalized four non-binding memorandums of understanding (MoUs) with leading Chinese battery cathode manufacturers. These agreements cover manganese sulphate (MnSO₄) production, ensuring that up to 70% of Stage One MnSO₄ output and 100% of manganese tetra-oxide (Mn₃O₄) from its Jinshi processing facility will find a market. These deals underscore the strong demand for high-quality battery-grade metals in China.
In addition, Firebird signed a non-binding MoU with French multinational Eramet, securing a consistent supply of manganese ore. Following successful lab-scale tests, this partnership includes provisions for a supply of 80,000 tonnes annually—20% more than initially projected, thereby mitigating logistical risks.
### Government Support and Infrastructure Development
The Jinshi facility, situated in Hunan Province’s Jinshi High-Tech Industrial Park, has been categorized as a Key Construction Project by local authorities. This designation allows Firebird access to vital government subsidies and expedited support services, facilitating quicker project execution. Construction is expected to kick off soon after a financial investment decision, with an estimated build time of under 12 months.
Designed to produce 50,000 tonnes of MnSO₄ and 10,000 tonnes of Mn₃O₄ per year at a capital cost of approximately US$83.5 million, the plant employs an innovative direct processing method. This approach eliminates traditional crystallization steps, promising operational cost savings of about US$167 per tonne.
### Pioneering Developments in LMFP Battery Testing
In a strategic partnership with Central South University, Firebird has begun producing battery-grade cathode materials and testing button cell batteries. Initial production efforts yielded five batches of solution-based MnSO₄, aimed at assessing charge-discharge performance with plans for up to 100 batches by June 2025. This testing phase sets the stage for future pouch cell evaluations.
Achieving this battery production milestone positions Firebird as the first Australian company capable of producing LMFP batteries, a significant achievement in the quest for a vertically integrated supply chain of manganese-based materials.
### Innovations in Energy Efficiency
To further enhance its technological capabilities, Firebird has enlisted Sedgman Pty Ltd, under the CIMIC Group, to spearhead the global commercialization of its energy-efficient calcining kiln. This groundbreaking kiln has demonstrated a remarkable 70% reduction in energy consumption compared to conventional methods, translating to savings of around US$30 per tonne. The technology is currently under patent application and has potential applications beyond manganese processing, including lithium sulphate and iron ore.
### Regulatory Milestones and Future Prospects
The Oakover Manganese Project, crucial for Firebird’s future expansions, recently achieved a significant regulatory milestone with the Western Australian Department of Energy granting Mining Lease ML 52/1086. Covering an area of 3,429.8 hectares, the project contains a mineral resource estimate of 176.7 million tonnes at 9.9% manganese. Ongoing studies aim to support the project’s long-term viability and its role in supplying feedstock for the Jinshi facility.
### Financial Overview
At the close of the March quarter, Firebird reported A$2.35 million in cash, alongside exploration expenditures of A$167,000 and plant development costs of A$224,000. Payments to directors and related parties totaled A$241,000 for the same period. While current funding affords operational coverage for just over three quarters, Firebird is actively seeking additional financing to bolster the construction and operational ramp-up of its processing capabilities in China.
### Conclusion
In summary, Firebird Metals Ltd is strategically positioned for growth in the battery-grade manganese market, backed by strong partnerships, government support, and innovative production technologies. As the demand for LMFP batteries rises in the electric vehicle and renewable energy sectors, Firebird’s advancements could play a crucial role in meeting this need, reinforcing its status as a key player in the global battery materials landscape.