Australia-based Firebird Metals has entered into a non-binding memorandum of understanding (MOU) with French miner Eramet for the supply of manganese ore.

This ore will be used in the first phase of Firebird’s planned facility in China, which will produce battery-grade manganese sulphate (MnSO₄) and manganese tetra-oxide (Mn₃O₄).

Eramet, through its subsidiary Comilog, operates the Moanda mines in Gabon, said to be the world’s largest manganese mining operation.

The agreement outlines a supply of 80,000 tonnes per annum (tpa) of manganese, with quarterly deliveries of 20,000 tonnes (t), aligning with Firebird’s operational needs and ensuring a stable logistics chain.

The annual supply volume surpasses the 66,000t per annum projected in Firebird’s feasibility study, with the additional tonnage acting as a contingency to counteract potential supply chain disruptions.

This arrangement is key for Firebird’s ambition to become a cost-effective and near-term producer of MnSO4 and Mn3O4, the company stated.

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Stage one of Firebird’s operations will produce 50,000tpa of battery-grade MnSO4 and 10,000tpa of Mn3O4 using third-party ore.

Stage two will focus on incorporating ore from the company’s wholly owned Oakover Manganese Project in Western Australia to boost production to approximately 300,000tpa of MnSO4 in China, and an additional 100,000tpa of battery-grade MnSO4 in Western markets.

Firebird managing director Peter Allen said: “Securing this reliable and strategic supply of manganese ore marks a pivotal step in accelerating our journey to production and building a strong foundation for sustainable cash flow generation.

“Firebird has made rapid progress in the execution of our unique LMFP [lithium manganese iron phosphate] strategy, attracting and securing high-profile partnerships that reinforce the strength of our strategic vision and increasing confidence in our ability to deliver on key milestones.”

The agreement follows “successful” testing of a 200kg Eramet ore sample at Firebird’s Jinshi research and development centre, yielding battery-grade MnSO₄ and Mn₃O₄.

The progression to a binding contract is dependent on Firebird meeting several milestones including securing project financing, beginning construction of the processing facility and initiating production ore requirements.

The companies aim to finalise a long-term supply agreement by 2026.

Allen added: “This agreement with Eramet reflects our commitment to establishing a vertically integrated operation and positions us to deliver on our long-term strategy of supporting the clean energy transition by becoming a key supplier of manganese for LMFP batteries.

“The company and I look forward to building a strong partnership with Eramet to deliver value for all stakeholders.”

Firebird Metals’ subsidiary, Hunan Firebird Battery Technologies, obtained a safety permit for the first phase of its MnSO₄ plant in China in May 2024.