St George Mining has stuck a preliminary deal with another China-based company, as it moves closer towards fulfilling its lithium development goals.
The lithium hopeful announced to the ASX on Thursday that it had entered into a non-binding agreement to consider collaboration with independent battery manufacturer SVOLT Energy Technology on the Mt Alexander lithium project near Leonora.
Under the memorandum of understanding, St George and SVOLT will also consider entering into a range of commercial transactions for investment and offtake opportunities relating to lithium projects in Australia.
It marks a significant step for St George, which last month signed a similar arrangement with Shanghai business Jayson New Energy Materials.
Jayson is a global supplier to the clean energy sector and the world’s top producer of cathode precursor materials for lithium-ion.
St George executive chairman John Prineas said the agreement with SVOLT would strengthen the company’s capacity to accelerate exploration and development at the Mt Alexander project.
“Under the strategic relationship, we will also consider project generation in Western Australia, creating another potential growth engine for our respective companies,” Mr Prineas said.
“St George’s ability to attract blue-chip partners like SVOLT and Jayson speaks volumes to the potential of Mt Alexander.”
The SVOLT agreement will last for initial term of two years, with a range of potential outcomes including a $5 million investment in St George by SVOLT, subject to pricing and completion of due diligence.