Renascor Resources (ASX:RNU) outlined plans to position itself as an integrated supplier of battery anode materials, emphasizing a strategy to move beyond mined graphite into downstream processing for the lithium-ion battery supply chain. Speaking at a company presentation, Managing Director David Christensen said the South Australia-based company aims to produce purified spherical graphite (PSG), a refined form of graphite used in lithium-ion battery anodes.
Strategy: from graphite mining to purified spherical graphite
Christensen said Renascor’s plan is to produce graphite from its Siviour deposit in South Australia and refine it into PSG for delivery to the lithium-ion battery market. He characterized the company’s opportunity as twofold: competitive costs at the mine level, and potentially greater competitiveness by moving one step further downstream.
Market backdrop: growing battery demand and geopolitical risk
Christensen described graphite as a “battery mineral,” noting that the largest use case for graphite is lithium-ion battery anodes. He said the company is tracking what he called a “paradigm-shifting trend” driven in part by increasing efficiency in lithium-ion battery production, which he suggested could support growth beyond typical political and commodity cycles.
He also pointed to energy storage as an increasingly important application for lithium-ion batteries, alongside electric vehicles. Christensen said this shifts the discussion from “economic security” for automakers to “energy security” tied to grid reliability.
On supply dynamics, Christensen emphasized China’s dominance in graphite processing, saying China has a near monopoly on purified spherical graphite and anode material. He argued that if China were to stop exporting these products, Western markets would be unable to build lithium-ion batteries, adding that China has “threatened to do that” for the last three years. He said that instead of acting on that threat, China has “dumped cheap synthetic material on the market,” which he said depressed prices and increased reliance on Chinese supply.
Policy signals: U.S. tariffs and allied supply-chain support
Christensen highlighted recent U.S. policy actions, describing a “carrot and stick approach” to reducing dependence on Chinese supply. He cited tariffs as a key “stick,” stating that the U.S. announced a final anti-dumping and countervailing duty of 160% on Chinese anode material, meaning Chinese anode material delivered into the U.S. now faces a 160% tariff.
He also said the U.S. is promoting domestic downstream production, drawing a comparison to rare earths as an example of how quickly policy can shift market outcomes. In Australia, Christensen said the country does not have the same end-market demand, but does have “very good projects” and government support aimed at meeting “allied supplied needs.”
Renascor, he said, has benefited from Australian government support, including:
- AUD 185 million conditional loan facility
- AUD 5 million grant to build a demonstration facility
Project status: Siviour deposit, approvals, cash, and demonstration facility
Christensen described Renascor’s development as a vertically integrated project combining mining with processing to produce PSG. He said the Siviour deposit is one of the largest graphite ore bodies globally and called it the “second-largest proven reserve of graphite in the world,” and “the largest reserve of graphite outside of Africa.”
Beyond size, he emphasized project efficiency, saying it has among the lowest operating costs and lowest capital intensity of any graphite development globally. He also said the project is “development-ready,” with major technical work completed and key upstream and downstream approvals in place, including land purchase and a native title agreement. Christensen added that Renascor had a cash position of AUD 97 million at the end of the last quarter.
On downstream development, Christensen said the company is building a PSG demonstration facility in Adelaide intended to validate the process and efficiency ahead of scaling. He said construction began around the midpoint of the prior year, with mechanical completion expected “as early as the end of this month,” followed by commissioning and operation moving into the second quarter. He said the demonstration facility is supported by POSCO in South Korea and Hanwa in Japan.
Offtake discussions and next steps toward financing
Christensen said Renascor’s target customers are anode makers, and that a small number of companies account for most anode material delivered into Western markets. He said these groups have faced price pressure from low-cost Chinese material, but are still expanding capacity to service Western battery markets. He cited expansion activity by POSCO in South Korea and Mitsubishi Chemical in Japan, and said Chinese anode producer BTR is expanding into Indonesia and is currently the largest seller of anode material into the U.S. market.
He said a “common denominator” for these expansions is the need for non-Chinese graphite supply, which Renascor believes it can provide. He also said Renascor has non-binding agreements in place with POSCO, Mitsubishi Chemical, and Hanwa as part of its offtake strategy.
Looking ahead, Christensen said the company expects to be “very busy” as it progresses through 2026, with priorities including validating the process at the PSG demonstration facility in Adelaide, finalizing offtake arrangements, progressing financing, and moving toward a final investment decision. He added that Renascor continues to maintain an active exploration portfolio, while focusing on unlocking value from its graphite project amid what he sees as the potential for policy-driven shifts in the graphite market.
About Renascor Resources (ASX:RNU)
Renascor Resources Limited engages in the exploration, development, and evaluation of mineral properties in Australia. The company explores for graphite, gold, copper, uranium, and other minerals. Its flagship project is the Siviour graphite project located in Eyre Peninsula, South Australia; the Cutana project that covering an area of 282 square kilometers located in the Olary region; and the Outalpa project, which covers an area of 287 square kilometers located in the Olary region. The company also holds the Marree, Eastern Eyre, and Carnding projects located in South Australia.
