Volt Resources Limited reports strong quarterly progress in graphite production and downstream development, securing new orders and partnerships while advancing US refinery plans and implementing cost-saving measures.
- Secured 60 tonnes of high-purity graphite orders and commenced ultra-high purity graphite trials
- Signed Joint Development Agreement with European battery recycler BATTRI
- Advanced discussions on US graphite refinery site in Alabama
- Raised $1.226 million via placement and restructured loans to reduce interest costs
- Implemented executive remuneration adjustments to cut costs by approximately $250k annually
Graphite Production and Downstream Expansion
Volt Resources Limited (ASX: VRC) has reported a productive quarter ending 31 March 2025, marked by significant advancements in its graphite operations and downstream processing capabilities. The company’s subsidiary, Zavalievsky Graphite, secured two orders totaling 60 tonnes of high-purity graphite from an existing customer, reinforcing demand for its product. Concurrently, Volt initiated trials for Ultra-High Purity Graphite (UHPG) using its new reactor equipped with patent-pending technology, signaling a step forward in producing battery-grade graphite suitable for lithium-ion batteries.
Further strengthening its downstream strategy, Volt signed a Joint Development Agreement (JDA) with BATTRI, a European battery recycling company. This collaboration focuses on recovering and upgrading graphite from recycled lithium-ion batteries, leveraging Volt’s innovative HF-free purification process. This partnership aligns with global sustainability trends and the circular economy in battery materials.
Strategic US Refinery Discussions
In a strategic move to expand its footprint, Volt’s Managing Director and CEO visited Tuscaloosa County Airport Industrial Park in Alabama to engage with local economic authorities and the University of Alabama’s Alabama Mobility and Power Centre. These discussions centered on establishing a graphite refinery and production site in the US, a critical step towards industrialising Volt’s graphite downstream business. While formal agreements are pending funding, this initiative positions Volt to tap into the growing North American battery materials market.
Geopolitical and Market Context
Volt’s 70% owned Zavalievsky Graphite operation in Ukraine benefits from potential US-Ukraine critical minerals agreements, enhancing market access amid ongoing geopolitical challenges. The visit by Ukraine’s Ambassador to Australia to Volt’s Perth office underscores the importance of international collaboration in securing critical mineral supply chains. Meanwhile, graphite prices remained stable during the quarter, reflecting steady demand for battery raw materials.
Financial Position and Cost Management
Volt successfully raised $1.226 million through a placement heavily supported by existing top shareholders, with key executives participating subject to shareholder approval. The company also restructured a $250,000 loan facility, reducing the interest rate from 10% to 7%, easing financial pressures. In a bid to further conserve cash, Volt implemented temporary remuneration adjustments for its executive team, reducing fees and shifting partial payments to equity. These measures are expected to save approximately $250,000 annually.
Ongoing Project Developments
Beyond graphite, Volt continues to advance its Bunyu Graphite Project in Tanzania, with ongoing negotiations on ownership and development agreements paving the way for Stage 1 development. The company is also reviewing exploration results for its gold projects in Guinea amid strong gold prices, and monitoring lithium licence applications in Serbia following the withdrawal of one application during the quarter.
Volt ended the quarter with $434,000 in cash and available financing facilities totaling $1 million, providing a runway of approximately 3.4 quarters based on current expenditure levels. The company remains focused on disciplined cash management while progressing its diversified portfolio of critical minerals assets.
Bottom Line?
Volt’s strategic partnerships and cost controls set the stage for scaling graphite production amid evolving global battery supply dynamics.
Questions in the middle?
- When will Volt secure formal funding and agreements to advance the US graphite refinery project?
- How will the partnership with BATTRI impact Volt’s downstream graphite processing volumes and margins?
- What are the implications of geopolitical risks in Ukraine on Volt’s graphite supply and operations?