Blencowe has accepted an invitation to join the prestigious international SAFELOOP consortium managed under the European Commission's €100 billion Horizon Europe Programme. Membership will position Blencowe as a critical supplier in the European EV Supply Chain
The case for graphite as a critical mineral and the ability to source it via non-Chinese supply chains is becoming more apparent than ever.
The US and EU are particularly nervous about Chinese dominanace in the graphite and other critical minerals space as evidenced by news out today from Blencowe who have accepted an invitation to join the prestigious international 'SAFELOOP' consortium managed under the European Commission's €100 billion Horizon Europe Programme, focussed on the European Union's renewable energy transition.
In our last blog Syrah Resources secures binding $150m loan agreement from the US DFC, What's the read-across for peer Blencowe? we discussed that graphite peer Syrah Resources had struck a substantial loan agrrement with the US DFC (Development Finance Corporation).
The DFC have provided Blencowe with $5M of grant funding and a Letter of Intent ('LOI') in relation to providing further debt funding for Orom-Cross.
The involvement of the DFC as a project funding partner is just one of a number of key relationships that Blencowe has struck over the last year or so as they near completion of the Orom-Cross DFS which will include and in-country SPG Benficiation facility.
Back in September the company announced an MOU with with a Singaporean graphite sales and marketing specialist Triessence Limited (“Triessence”) and a leading Asian SPG and Anode material producer (“SPG Partner”) more here
Furthermore, in October, the company announced it had received Global MSP Accreditation for Orom-Cross (Blencowe Receives Global MSP Accreditation Opening New Investment Avenues), opening up new funding channels given that one of the MSP's objectives is to accelerate the development of diverse and sustainable critical energy minerals supply chains through working with host governments and industry to facilitate targeted financial and diplomatic support for strategic projects along the value chain.
Blencowe joins Elite European Commission Consortium to Exclusively Supply Graphite Concentrate for European EV Buses
Todays news is a transformative opportunity for Blencowe and its Orom-Cross Graphite Project in Uganda, positioning the project as a critical supplier in the European EV supply chain with exclusive access to premium pricing contracts, large-scale offtake commitments of up to 100,000 tonnes annually, and strategic partnerships with tier-one European gigafactories and EV manufacturers.
The partnership positions Blencowe at the heart of Europe's transition to renewable energy. Blencowe's US technical partner, American Energy Technologies Co. ("AETC"), will will play a pivotal role in processing Orom-Cross graphite into battery-ready anode active materials. This is separate to Blencowe's additional plams for an in-country SPG Beneficiation facility as discussed previously.
The initiative will essentialy provide offtake for large amounts of smaller-flake graphite concentrate into a tier 1 US partner and at premium pricing meaning Blencowe will not need to sell concentrate into lower-price Asian markets. It's also worth noting that AETC, an established premium performance graphite processor, has conducted over 24 months of rigorous testing on Orom-Cross end-products in the United States, including pilot-scale and production-scale work.
Under the initiative Blencowe will benefit from:
The company's Chairman, Cemeron Pearce commented:
We are delighted to join the high profile SAFELOOP Project, positioning Blencowe at the heart of Europe'stransition to renewable energy. Being chosen as the exclusive natural flake graphite concentrate supplier for SAFELOOP provides a potentially huge offtake opportunity ahead that can provide a valuable annuity income stream for our Company and long term value for shareholders.
"This selection is a testament to the high quality of Orom-Cross and the critical role it will play in the EV supply chain. The association with SAFELOOP also opens significant opportunities for Blencowe to further strengthen its position as a leader in the global graphite market, and, once again, setting our Project and our Company apart from our peers."
With a number of Tier 1 industry partners now in place, exclusive supplier arrangements under the SAFELOOP initiative, Ugandan support for a lucrative in-country SPG Beneficiation facility, funding options via the DFC and via the MSP accreditation, Blencowe are well placed to become a key supplier and producer of both graphite concentrate and SPG Anode materials into Western markets who are desperate to secure critical minerals and break the stranglehold of the Chinese.
Join us on the 10th December when SmallCapPix will be chatting to Mike Ralston on a Live Space with the opportunity for investors to ask questions.