Microvast Holdings announces departure of chief financial officer
LONDON - Blencowe Resources Plc (LON:BRESB) (LSE: BRES) has signed a non-binding offtake agreement with Qingdao TaiDa Carbon Co Ltd, a prominent Chinese producer of purified graphite, for the supply of natural fine flake graphite concentrate from its Orom-Cross Graphite Project in Uganda. This deal marks a significant stride in the company’s strategy to bolster its initial production capacity.
The agreement, announced today, entails the annual supply of 5,000 tons of 96% graphite concentrate for a period of three years, starting from 2026, with options for extension and expansion. This contract is set to cover half of Blencowe’s Phase 1 production target of 10,000 tons per annum.
TaiDa, known for its Uncoated Spheronised Purified Graphite (USPG), supplies to top-tier battery manufacturers and industrial users globally. The contract follows 18 months of product testing and validation, ensuring that Orom-Cross graphite meets TaiDa's quality standards for use in its products.
While pricing details will be finalized at the binding stage, reflecting premium markets, the agreement already underpins Blencowe’s decision to double its initial Phase 1 output, aiming for a profitable launch. Furthermore, the agreement lays the groundwork for an in-country Spherical Purified Graphite (SPG) facility in Uganda, which is expected to lower operating costs and capture more value downstream.
Blencowe’s Executive Chairman, Cameron Pearce, expressed satisfaction with the progress of securing offtake agreements to cover the initial Phase 1 production, highlighting the company’s successful strategy of scaling production based on offtake contracts. The company is also engaging with other potential customers in the USA and the UK, testing both large and smaller flake products, with the aim of securing full sales coverage for its Phase 1 production.
The Orom-Cross project’s production is not limited by capacity but by sales, and Blencowe is actively working to expand its customer base. The company continues to negotiate with strategic partners to finalize the broader project financing solution.
TaiDa, with 60 years of experience in the graphite industry, is a respected player in the field, with a joint venture with Mitsubishi Chemicals highlighting its strong industry connections.
This agreement is a part of Blencowe’s strategy to establish firm sales channels for its graphite production, which is crucial for the company’s growth and profitability. The information for this article is based on a press release statement.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.