Renascor Resources Ltd. entered into a nonbinding memorandum of understanding with Sicona Battery Technologies for the joint development of next-generation battery anodes, Renascor said Dec. 18.

Sydney, Australia-based Sicona wants to commercialize the production of silicon-graphite batteries, which it said will improve anode capacity and cell energy density.

The consortium will seek to tap Renascor's expertise in producing purified spherical graphite and Sicona's expertise with silicon-based anodes.

In the MOU's first phase, Renascor will provide graphite samples to Sicona for testing in high-performance standard-energy graphite anodes and next-generation silicon-composite anodes.

The MOU also comprises potential pilot-scale production trials and, if successful, commercial production of next-generation battery anodes.

The companies expect to conclude a binding agreement in early 2020, with first-phase testing starting immediately.

Renascor released a definitive feasibility study in November for the two-stage development of Renascor's Siviour project, which will provide the purified spherical graphite that Sicona will use. The company is expected to generate a posttax net present value, discounted at 10%, of US$271 million, a 33% internal rate of return and a 3.7-year payback period from the time of first production.