REG - GreenRoc Strateg PLC - Signs MoU with Morrow Batteries ASA

GreenRoc Strategic MaterialsAnnouncement

04/12/2024 07:00

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RNS Number : 6577O  GreenRoc Strategic Materials Plc  04 December 2024

GreenRoc Strategic Materials Plc / EPIC: GROC / Market: AIM / Sector: Mining

 

4 December 2024

GreenRoc Strategic Materials Plc

("GreenRoc" or the "Company")

 

Amitsoq Update

GreenRoc Signs MoU with Morrow Batteries ASA

 

GreenRoc Strategic Materials plc (AIM: GROC), a company focused on the
development of critical mineral projects in Greenland, is pleased to announce
that it has signed a memorandum of understanding ("MOU") with Morrow Batteries
ASA ("Morrow"), a Norwegian company dedicated to developing and manufacturing
sustainable and high-performance lithium-ion battery cells.  GreenRoc has
also commenced the process of setting up a Norwegian registered subsidiary to
undertake work related to the production of graphite active anode material
("AAM") for batteries.

 

Details:

Morrow and GreenRoc have signed the non-binding MOU to lay the foundation for
collaboration and development of AAM, which is essential for advanced battery
technology.  The scope of cooperation includes:

·      Secured Supply of Proven Quality AAM: GreenRoc intends to supply
graphite concentrate from its planned mine at Amitsoq in Greenland.  Given
the single source origin, GreenRoc intends to produce AAM of consistent
quality.

·      Transportation Efficiency and CO(2) Reduction: The location of
GreenRoc's planned European AAM plant in Norway, near to Morrow's gigafactory,
allows for significantly shorter transportation lines, contributing to reduced
transportation costs and lower CO(2) emissions.

·      Enhanced Environmental, Social, and Governance (ESG) Performance:
GreenRoc's graphite extraction at Amitsoq in Greenland and the subsequent
processing into AAM will be developed in alignment with best-in-class ESG
practices and aims to demonstrate a significantly better ESG profile compared
to present day supplier standards.

·      Reduced CO(2) Emissions Through Renewable Energy Use: GreenRoc's
anticipated AAM production aims to be largely powered by electricity generated
by hydropower, contributing to a specific CO(2) emissions reduction in AAM
production compared to present day AAM suppliers that rely on higher
carbon-emitting sources.

·      Tailored AAM Production to Morrow's Specifications: GreenRoc will
have the flexibility to adjust AAM specifications and capacity to Morrow's
evolving needs, with the capability to adapt specifications on short notice,
as required.

·      Mutual Engagement in Material Performance Development: The
parties will engage with one another on the potential to optimise material
performance to enhance battery cell capacity and durability, leveraging shared
R&D efforts.

·      Continuous Reduction of CO(2) Emissions: Both parties will engage
in efforts to further reduce CO(2) emissions from raw material sourcing and
processing, aiming collectively to be industry leading.

·      Operational Synergies from Strategic Proximity: The co-location
of Morrow's gigafactory and GreenRoc's planned European AAM plant in Eyde
Material Park is expected to deliver strategic and logistical advantages for
both parties going beyond the points given above.  Examples include the
attraction for investors of clear upstream graphite supply security in a
changing global geopolitical landscape, increased interest from battery
purchasers due to enhanced battery performance, and technical flexibility and
security of AAM supply into the coming decade.

Morrow's battery cell factory is the first LFP (lithium iron phosphate)
Gigafactory in Europe.  It is located in Eyde Materials Park in South Norway,
some 3km from Port of Arendal at Eyde and commenced battery cell test
production in August 2024.  Morrow has secured a delivery agreement for 5.5
gigawatt hours (GWh) over seven years with Nordic Batteries, which builds
customised power storage solutions for sectors including construction,
maritime, defence, and grid systems. Morrow's investors include Norwegian
utility company Å Energi, engineering groups ABB and Siemens, Danish pension
fund PKA and Norwegian state-owned green investment firm Nysnoe Climate
Investments.

 

GreenRoc has reserved an area in the Eyde Materials plant to locate its first
AAM plant (see RNS of 27 August 2024).

 

Establishing a Norwegian Subsidiary:

GreenRoc is in the process of establishing a wholly owned Norwegian registered
company NorGraph AS, to undertake the development of the AAM plant in Norway.
 Being registered in Norway, NorGraph AS will be eligible for funding under
EU funding schemes, such as the European Innovation Council.

 

GreenRoc's CEO, Stefan Bernstein, commented:

"This MoU between GreenRoc and Morrow is a significant step forward in
GreenRoc's journey to become a prominent producer of graphite active anode
material for Europe.  Teaming up with such a ambitious battery producer is a
huge achievement, but it is all the more significant given Morrow's proximal
location to GreenRoc's planned AAM plant and the team's shared focus on and
commitment to ESG performance, which ideally aligns the parties as operating
partners.

 

"Signing this MoU provides us with the framework, at an early stage, to tailor
our graphite anode materials product and optimise the quality to meet the
specifications for a potential off-take agreement.  It also lays the
foundation for us to work together to further develop technology and establish
a domestic European production of batteries in line with our endeavours to
become industry pioneers. The GreenRoc team and I very much look forward to
working with Morrow and are excited for the opportunities ahead."

 

Morrow's CSO and Co-Founder Jon Fold von Bulow, commented:

"Our collaboration with GreenRoc marks a significant step toward building a
sustainable Nordic battery value chain. This partnership will be an important
stepping stone in bringing the carbon emissions of our battery cells to
exceptionally low levels while strengthening Europe's battery supply security
- it is great that we can leverage complementary strengths from across the
Nordic region."

 

About Morrow Batteries:

Morrow Batteries is a Norwegian company committed to accelerating the energy
transition with cost-effective and sustainable battery solutions.  Positioned
as a leading specialist supplier in Europe, Morrow focuses on developing
tailored battery solutions and expanding into volume markets for energy
storage, niche sectors, and automotive applications.  Leveraging a skilled
R&D team, world-class manufacturing experts, and Norwegian hydropower,
Morrow aims to deliver sustainable, high-performance batteries by eliminating
toxic solvents and reducing nickel use.  The company plans to start with LFP
batteries and advance to LNMO technology on a scalable platform.

 

Morrow's operations are streamlined to ensure high quality at competitive
costs, utilising automated manufacturing with state-of-the-art technology for
scalability.  Combining strong engineering and industrial expertise with a
dedicated team of operators, Morrow ensures top-quality products with low
scrap rates and high yield.

 

Morrow aims to innovate battery technology through its advanced facilities,
including the Morrow Research Centre in Grimstad, Norway.  The company
focuses on step-by-step growth with customer needs at the forefront, beginning
with LFP battery production for niche segments and energy storage, then
advancing to enhanced LFP and LNMO technologies. The promising LNMO-based
batteries reduces the use of cobalt and nickel, resulting in environmentally
friendly batteries with high energy density and long life spans.

 

Morrow's factory and products align with the European Union's Green Deal
objectives, aiming to make the battery supply chain more sustainable and
localised. Norway's abundant renewable energy and industrial expertise provide
an ideal environment for Morrow's production and innovation initiatives.

 

Fully European-owned, Morrow's shareholders include Siemens, ABB, PKA, Nysnø
Climate Investments, Noah AS, and Å Energi.

 

This announcement contains inside information for the purposes of the UK
Market Abuse Regulation and the Directors of the Company are responsible for
the release of this announcement.

 

Forward Looking Statements

This announcement contains forward-looking statements relating to expected or
anticipated future events and anticipated results that are forward-looking in
nature and, as a result, are subject to certain risks and uncertainties, such
as general economic, market and business conditions, competition for qualified
staff, the regulatory process and actions, technical issues, new legislation,
uncertainties resulting from potential delays or changes in plans,
uncertainties resulting from working in a new political jurisdiction,
uncertainties regarding the results of exploration, uncertainties regarding
the timing and granting of prospecting rights, uncertainties regarding the
timing and granting of regulatory and other third party consents and
approvals, uncertainties regarding the Company's or any third party's ability
to execute and implement future plans, and the occurrence of unexpected
events. Actual results achieved may vary from the information provided herein
as a result of numerous known and unknown risks and uncertainties and other
factors.

 

**ENDS**

 

For further information, please contact:

 GreenRoc Strategic Materials plc                     +44 20 3950 0724

 Stefan Bernstein, CEO

 Cairn Financial Advisers LLP (Nomad)                 +44 20 7213 0880

 James Caithie / Sandy Jamieson / Louise O'Driscoll

 Oberon (Broker)                                      +44 20 3179 5300

 Nick Lovering/Adam Pollock

 St Brides Partners Ltd (Financial PR & IR)           +44 20 7236 1177

 Charlotte Page / Paul Dulieu

 

About GreenRoc

GreenRoc Strategic Materials Plc is an AIM-quoted company, which is led by a
group of highly experienced mining industry professionals.  The Company is
focused on fast-tracking the Amitsoq Graphite Project in Greenland into a
producing mine to meet critical demand from Electric Vehicle ('EV')
manufacturers in Europe and North America for new, high grade and
conflict-free sources of graphite. Amitsoq  is one of the highest-grade
graphite deposits in the world with a combined Measured, Indicated and
Inferred JORC Resource of 23.05 million tonnes (Mt) at an average grade of
20.41% graphite, giving a total graphite content of 4.71 Mt, and significant
further upside beyond this.  Test work has proven that Amitsoq graphite can
be readily upgraded to high-grade, anode-quality graphite, with higher than
99.95% purity and relatively little energy input, boding well for future
production costs and sustainability commitments.

 

A Preliminary Economic Assessment released on 31 October 2023 gives a post-tax
NPV8 for the Project of US$179M, an IRR of 26.7% and capex estimated at
US$131M (including a 25% contingency). These figures solely relate to the
economics of a mining and primary processing operation in South Greenland and
do not take into account any potential upside from a downstream processing
operation, which GreenRoc intends to establish.  A Feasibility Study into the
establishment of a graphite spheronisation processing plant (published in May
and July 2024) shows a post-tax NPV8 for the project of US$621M, an IRR of
26.5% and capex estimated at US$340M (including a 25% contingency). The
Company has signed a Letter of Intent to secure an area for the Company's
future Active Anode Materials Plant in Southern Norway and has received
expressions of support from the European Raw Materials Alliance and the US
EXIM Bank for future development.

 

GreenRoc also has the Thule Black Sands Ilmenite Project ('TBS') in Greenland,
which has an initial Mineral Resource of 19Mt at 43.6% Total Heavy Minerals
with an in-situ ilmenite grade of 8.9%.

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