CHINA - Galaxy support agreement

Galaxy Resources has signed a technology licence agreement with the established US-based lithium ion battery producer K2 Energy Solutions. Under the agreement, K2 Energy will provide Galaxy with battery technology expertise, licensing and commercial support for the construction and operation of Galaxy’s proposed Jiangsu battery manufacturing plant in China.

Galaxy’s managing director Iggy Tan has welcomed the prospect of K2 Energy as a technology partner for Galaxy's prospective battery plant. “Ensuring we will be able to complete construction and operation of the Jiangsu lithium carbonate plant in accordance with our revised timetable is our first priority, nonetheless this licence agreement is important preparatory work for our proposed pipeline battery project.

“Galaxy will have the unrestricted and unlimited use of specific K2 Energy lithium battery technologies, valuable for the Ebike and other battery markets. Subject to the Galaxy Board approving the battery project, K2 Energy's superior and proven lithium battery technology coupled with Korean state-of-the-art automated plant equipment, will help Galaxy to leap frog research and development and produce world-class lithium ion batteries.”

K2 Energy has a rapidly growing annual turnover, based upon its development of an innovative family of large format batteries and battery systems based upon lithium iron phosphate technology. The company possesses key intellectual property for high performance lithium iron phosphate batteries, with some of its technology applications pending patent approvals.

K2 Energy also has significant experience in the pre-operational stage of battery manufacturing, in particular providing technology and licensing support to European Batteries Oy’s lithium battery manufacturing facility in Finland.

K2 Energy’s CEO Johnnie Stoker says, “It is our belief that with our proven technology recipe and the Galaxy's selection of Korean battery processing plant equipment will produce world-class lithium batteries for any application.”

Galaxy wholly-owns and operates the Mt Cattlin mine, which is currently producing spodumene concentrate. Its Jiangsu lithium carbonate plant, once completed, will have an annual design capacity of 17,000 tonnes of lithium carbonate, which Galaxy expects would make it one of the largest plants in China converting hard rock lithium mineral concentrates into lithium compounds and chemicals.

www.galaxylithium.com