Directa Plus PLC (LON:DCTA) said it has signed a non-binding memorandum of understanding with NexTech Batteries, a company in the field of Lithium Sulphur batteries based in Nevada.
Under the agreement, Directa will supply NexTech with its pristine graphene nanoplatelets, a key raw material for manufacturing the cathode of Lithium Sulphur batteries.
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The graphene specialist said it has agreed with the US firm to form a steering committee responsible for establishing an action plan together with timelines for all relevant activities under the agreement.
Subject to the achievement of minimum sales orders, Directa Plus said it granted NexTech an exclusivity period of five years in the field of Lithium Sulphur batteries.
NexTech has completed significant test work which has validated the suitability of the Directa’s G+ materials for Lithium Sulphur battery production, while it is in the process of scaling up its production unit in order to meet increasing demand from customers for its batteries.
NexTech was founded in 2016 and owns the exclusive license to the intellectual property relating to Lithium Sulphur batteries, developed by the Lawrence Berkeley National Lab, a US Department of Energy Office of Science laboratory, managed by University of California.
Lithium Sulphur batteries are considered to be a superior battery technology to Lithium-Ion battery technology due to possessing a superior energy density, a significant cost advantage, a superior safety profile, and a less complex manufacturing process, Directa Plus noted.
A formal arrangement for the supply will be set out once the two companies enter a binding supply agreement.
“Environmental sustainability is at the heart of Directa’s purpose, and a successful global transition away from fossil fuels to renewable sources of energy is one of the most important environmental challenges the world faces,” Directa’s chief executive Giulio Cesareo said in a statement.
“Better battery technology and more widespread deployment are vital to achieving thes goals and NexTech is at the forefront of that process.”
Shares advanced 4% to 69.5p on Monday morning.