NextSource, POSCO sign MoU

NextSource Materials, a company listed on the Toronto Stock Exchange, has agreed to work together with South Korean trading company, POSCO. They've signed a temporary agreement (MoU) which is not legally binding to determine their collaboration.

According to NextSource, the company that is in charge of the Molo mine situated in Madagascar, POSCO might invest some money in NextSource in exchange for equity. Additionally, they might sign an agreement for the provision of spheronised and purified graphite for a long-term period.

The company is considering a possible agreement to buy 30,000 tons per year of SuperFlake graphite concentrate and 10,000 to 15,000 tons per year of SPG for a ten-year term. However, this will depend on the results of some regular technical and economic investigations.

POSCO Future M, a subsidiary of the POSCO Group, is responsible for the battery business for electric vehicles. They will receive the SuperFlake and SPG, which are finished cathode and anode materials, and provide these materials to all major battery cell manufacturers in South Korea.

Craig Scherba, the president and CEO of NextSource, expresses excitement about the incredible chance of forming an important collaboration with POSCO, one of the biggest suppliers of anodes to western cell manufacturers and original-equipment manufacturers. He confidently anticipates the progress of the MoU and the potential benefits that will come from working together with POSCO.