Red Dirt Metals Limited (ASX: RDT) has executed a non-binding Memorandum of Understanding (MOU) for future product offtake and broader cooperation with VinES Energy Solutions Joint Stock Company (VinES).
VinES is a member of Vingroup, the largest private conglomerate in Vietnam. The MOU relates to potential future spodumene concentrate production from Red Dirt’s flagship Mt Ida Lithium Project in Western Australia.
The Non-binding MoU contemplates future negotiation of a binding offtake agreement for up to 45,000tpa of Spodumene concentrate, subject to the future production capacity at Mt Ida and securing funding for development.
The future potential offtake contract pricing will utilise market pricing mechanisms prevalent in the market for spodumene concentrate at the time.
The MoU has a term of four years from the day of execution and the parties will work to negotiate a binding offtake agreement within this time.
Technical exchange and metallurgical test work of the potential spodumene products from the Red Dirt projects.
The parties will jointly explore opportunities for joint development of mid-stream and/or downstream projects in the lithium value-chain.
Red Dirt is pleased to be working with VinES and its parent company Vingroup who are pursuing a clear vision to be a global battery manufacturer,” Red Dirt Executive Chairman David Flanagan said.
“Like Red Dirt’s plans for Mt Ida, VinES recognises the need to execute this strategy at speed. The capability of the Vingroup has been demonstrated in the successful development, launch and export of the first Vietnamese electric vehicle (EV) with another subsidiary company, VinFast.
“As we aggressively pursue our target of first mining at Mt Ida in 2023 and building a multi-project lithium business in the years ahead, working with innovative and fast-growing business in the battery supply chain with group companies who will manufacture electric vehicles and energy storage solutions is an exciting development.”
VinES CEO Pham Thuy Linh said securing lithium sources will strengthen our integrated supply chain and ensure VinES’s comprehensive sustainable development.
“I believe the MOU with Red Dirt shall lay the sound foundation for our mutual efforts in accelerating the growth of business and seizing opportunities in the EV supply chain,” she said.
The execution of this MOU represents another step in the rapid acceleration programme that Red Dirt is undertaking. Red Dirt is aiming to start mining at Mt Ida before the end of 2023, with initial plans to deliver a Direct Shipping Ore (DSO) product. This MOU is focused on the subsequent development of a lithium concentrate product which requires the design and construction of a lithium concentration process.
The recently completed $55m capital raise has positioned Red Dirt with a well-funded balance sheet to drive the exploration and development required at Mt Ida and the next stages of exploration at the highly prospective Yinnetharra Lithium Project.
