Firebird Metals Advances LMFP Battery Production and Secures Key Offtake MoUs

Strategic Offtake Agreements Signal Market Confidence

Firebird Metals Limited (ASX: FRB) has reported a productive March 2025 quarter, marked by the finalization of four non-binding Memorandums of Understanding (MoUs) with leading Chinese battery cathode manufacturers. These agreements cover the supply of manganese sulphate (MnSO4) and manganese tetra-oxide (Mn3O4) from Firebird's proposed battery-grade plant in Jinshi, China. The MoUs represent up to 70% of potential Stage One MnSO4 production and 100% of Mn3O4 production capacity, underscoring strong demand for high-quality manganese materials in the rapidly expanding lithium manganese iron phosphate (LMFP) battery market.

These offtake agreements follow successful pilot plant sample distribution and analysis, validating Firebird's product quality and cost competitiveness. The strategic location of the plant in the Jinshi High-Tech Industrial Park, combined with local government recognition as a Key Construction Project, provides Firebird with preferential access to subsidies, expedited financial services, and dedicated project support.

Innovative Technology and Collaborative R&D Drive Cost Efficiency

Firebird's collaboration with Central South University (CSU) has yielded the production of LMFP button batteries from five manganese sulphate batches, with plans to complete 100 batches by June 2025. This R&D partnership aims to optimize battery performance and scale up to larger pouch cell testing, positioning Firebird as the first Australian company to produce LMFP batteries.

Complementing this, Firebird has engaged Sedgman Pty Ltd, a CIMIC Group company, to commercialize its patented calcining kiln technology. This kiln offers a remarkable 70% reduction in energy consumption compared to conventional kilns, translating to a significant cost saving of approximately USD30 per tonne of product. The kiln's scalability and potential cross-industry applications further enhance Firebird's operational efficiency and competitive edge.

Securing Supply and Expanding Resource Base

In a pivotal development, Firebird signed a non-binding MoU with Eramet, a global mining and metallurgy leader, for the supply of manganese ore to support Stage One operations in China. The agreement follows successful testing of Eramet's ore samples and outlines an annual supply of 80,000 tonnes, exceeding the feasibility study's requirements and providing a strategic buffer against logistical disruptions.

Domestically, Firebird was granted Mining Lease ML 52/1086 for its 100% owned Oakover Manganese Project in Western Australia. The lease covers over 3,400 hectares and includes key mining pits and infrastructure areas. Oakover's substantial Mineral Resource Estimate of 176.7 million tonnes at 9.9% manganese forms a cornerstone of Firebird's long-term vertical integration strategy, aiming to secure feedstock supply for future plant expansions.

Financial Position and Outlook

Firebird closed the quarter with a cash balance of $2.35 million, having incurred exploration and development expenditures aligned with advancing its Chinese manganese sulphate plant and Oakover project. Approximately 60% of the required financing for the Jinshi plant has been secured through indicative agreements with key partners, including China Chemical and China Construction Bank, reflecting strong institutional support.

With government endorsements, strategic partnerships, and technological innovations converging, Firebird is well-positioned to transition from development to production. The company's focus on cost-efficient, high-purity manganese materials aligns with the accelerating demand for LMFP batteries in electric vehicles, a market forecasted to exceed US$20 billion by 2030.