GreenRoc inks deal with Norwegian battery maker Morrow

(Sharecast News) - GreenRoc Strategic Materials announced the signing of a memorandum of understanding (MoU) with Norwegian battery manufacturer Morrow Batteries on Wednesday, marking a significant step in its development of graphite-based active anode material (AAM) for lithium-ion batteries. The AIM-traded firm said the agreement aligned with its plans to establish a European AAM plant in Norway, leveraging its graphite concentrate supply from the planned Amitsoq mine in Greenland.

It said the MoU outlined key areas of collaboration, including the secure supply of consistent-quality AAM, tailored production to Morrow's specifications, and mutual research and development efforts to enhance battery performance.

The strategic proximity of GreenRoc's AAM plant in Eyde Material Park to Morrow's gigafactory was expected to deliver logistical and operational synergies, reducing transportation costs and carbon dioxide emissions.

GreenRoc said its planned production would emphasise environmental, social, and governance (ESG) excellence, using hydropower to achieve lower carbon emissions compared to traditional AAM producers.

The company added that it intended to further reduce emissions through collaborative efforts with Morrow.

Morrow's Eyde-based gigafactory, Europe's first lithium iron phosphate (LFP) facility, started test production in August and had secured a 5.5 GWh delivery agreement with Nordic Batteries.

With backing from prominent investors, including Norwegian utility Å Energi, ABB, Siemens, and state-owned Nysnø Climate Investments, GreenRoc said Morrow was positioned as a key player in the European battery market.

To support the AAM project, GreenRoc said it would establish a Norwegian subsidiary, NorGraph AS, which would manage the AAM plant's development and be eligible for EU funding opportunities.

"This MoU between GreenRoc and Morrow is a significant step forward in GreenRoc's journey to become a prominent producer of graphite active anode material for Europe," said chief executive officer Stefan Bernstein.

"Teaming up with such an ambitious battery producer is a huge achievement, but it is all the more significant given Morrow's proximal location to GreenRoc's planned AAM plant and the team's shared focus on and commitment to ESG performance, which ideally aligns the parties as operating partners.

"Signing this MoU provides us with the framework, at an early stage, to tailor our graphite anode materials product and optimise the quality to meet the specifications for a potential off-take agreement."

Bernstein said it also laid the foundation for the further development of technology, establishing a domestic European production of batteries in line with the firm's endeavours to become industry pioneers.

"The GreenRoc team and I very much look forward to working with Morrow and are excited for the opportunities ahead."

At 1236 GMT, shares in GreenRoc Strategic Minerals were up 6.9% at 1.55p.

Reporting by Josh White for Sharecast.com.