Mineral Commodities Ltd. announced a non-binding memorandum of understanding (MOU) with Mitsubishi Chemical Corporation (MCC) to collaborate on graphitic anode materials supply in Europe. In a phased collaboration MCC and MRC will explore collaboration opportunities including: Phase 1 - A Manufacturing and Supply Agreement (Toll Manufacturing Agreement), in which MRC, via a 100% MRC owned Norwegian subsidiary (Ascent Graphite AS), will construct and operate an "Anode Plant" in Norway to toll treat graphitic material supplied by MCC for subsequent deliver to MCC, and Phase 2 - A broader business collaboration agreement to produce and sell active anode materials in Europe manufactured using MRC's purified graphitic materials and MCC's active anode materials technologies and experience in material qualification, marketing and sales. The parties have been discussing potential collaboration to undertake European anode production and supply, resulting in the MOU.

Phase 1 of the agreement is considerably advanced with MRC conducting engineering design for the Anode Plant with a Final Investment Decision expected in third quarter 2022. Phase 2 targets a broader collaboration to manufacture and sell high quality active anode materials in Europe, leveraging: MRC's natural graphite concentrates, commencing with Skaland graphite; MRC's environmentally sustainable natural graphite purification technology that do not use toxic hydrofluoric acid; MCC's active anode materials technologies; and MCC's active anode materials qualification, marketing and sales experience MCC's technologies include: a natural graphite-based anode material (SF-MFG) that has comparable performance with synthetic graphite with respect to long cycle life and low swelling; and a natural graphite-based anode material (SCG) with a chemical coating to reduce greenhouse gases (GHG) emissions relative to conventional pitch coating processes. The comparable performance of SF-MFG and synthetic graphite potentially allows downstream manufacturers to simplify their processing to just use natural graphite based anode materials, whilst SCG reduces GHG emissions associated with furnace treatment (carbonisation) for pitch coatings.

MCC also brings its very significant anode materials qualification, marketing and sales experience to the Phase 2 collaboration. For MRC, the collaboration allows the company to accelerate its transition to a vertically integrated natural graphite-based anode materials supplier in Europe, based on its natural graphite resources and environmentally sustainable purification. The form of the Phase 2 collaboration is to be agreed, with options including but not limited to a Joint Venture, Toll Manufacturing or Technology Licensing.

Initial samples have been supplied to MCC for Phase 2 testing, with further samples provision and testing on-going.