The Vancouver-based junior nickel miner FPX Nickel Corp. (TSX-V: FPX) (OTCQB: FPOCF) has entered a non-binding memorandum of understanding (MOU) with a Japanese energy agency and lithium-ion battery manufacturer aimed at strengthening the supply chain and collective knowledge of the organizations.
The signing ceremony between the company, the Japan Organization for Metals and Energy Security (JOGMEC) and Prime Planet Energy & Solutions (PPEC) was held in Ottawa on Thursday.
The three partners in the agreement will be sharing their expertise and considering potentially beneficial business arrangements. FPX says the MOU provides the company and the joint venture with a framework for vertical integration of nickel production, which will involve the development of FPX’s flagship Baptiste nickel project in British Columbia and ensuing production of cathode active materials and nickel sulphate for utilization and distribution by PPES.
The JOGMEC is an independent administrative government agency concerned with energy stability and PPEC is a joint venture between Toyota Motor Corporation (TYO: 7203) and Panasonic Holdings Corporation (TYO: 6752). The nickel miner previously entered a partnership with JOGMEC in April this year and has received funding for its exploration activity from the Japanese agency.
However, the agreement has no fixed timeline and it is currently uncertain when any binding contracts will be established.
FPX Nickel Announces Battery Supply Chain MOU with JOGMEC and Prime Planet Energy & Solutions (Toyota/Panasonic JV Company)https://t.co/I6UBUMel4Z pic.twitter.com/DWS731cf5q
— FPX Nickel Corp. (@FPX_Nickel) September 22, 2023
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Baptiste is one of the world’s largest nickel projects
The Baptiste nickel project is expected to have a 29-year mine life and produce a whopping 132 million pounds of the battery metal annually on average, according to a pre-feasibility study conducted this month.
“This MOU demonstrates the strategic nature of the Baptiste project and its potential to produce an ideal nickel feedstock for the battery supply chain,” said FPX’s President and CEO Martin Turenne.
The company received a $725,000 grant from the Canadian government at the Prospectors & Developers Association of Canada conference in March this year as part of the country’s critical minerals strategy.
“By combining FPX’s low-carbon nickel mining process and PPES’ battery know-how and technology, we are sure to realize further decarbonization and cost reductions in this field,” said the joint venture’s CEO Hiroaki Koda.
PPES was established in 2019, is based in Tokyo and employs approximately 8,400 people.
Other Canadian nickel mining companies include Canada Nickel Company (TSX-V: CNC), Garibaldi Resources Corporation (TSX-V: GGI) and First Quantum Minerals Ltd. (TSX: FM).
FPX shares rose significantly Friday by 16.3 per cent to $0.50 on the TSX Venture Exchange.
Nickel is currently worth $11.60 per pound. Its value has dropped significantly since the beginning of January when it was worth approximately $19.00/lb.
rowan@mugglehead.com
