Firebird Metals Ltd (ASX:FRB) announced the successful installation and commissioning of its proprietary cathode active material (CAM) equipment at the company’s Collinsville pilot plant in Queensland. Over a six-week period, engineers calibrated the LMR cathode line to deliver a throughput rate of 5 tonnes per annum, meeting design specifications. Key performance metrics, including electrode coating uniformity of ±2 microns and adherence rates exceeding 98%, were validated during commissioning trials.

The trial run processed 12 tonnes of mixed metal hydroxide precipitate (MMHP) feedstock sourced from Firebird’s flagship Blackland project core samples. Produced cathode material exhibited an average nickel content of 8.5% and manganese content of 10.2%, aligning with the company’s target quality metrics for lithium-ion battery cells. These results support a projected capital expenditure reduction of 15% in full-scale operations and suggest operating costs could fall to US$4,800 per tonne of CAM produced.

With pilot plant data in hand, Firebird Metals is advancing front-end engineering and design (FEED) for a 10,000 tpa CAM production facility slated for sanction in Q4 2024. Management reports ongoing offtake discussions with three major battery manufacturers in Asia and Europe, targeting supply agreements for 20,000 tonnes of CAM over five years. Agreements are expected to include minimum annual volume commitments and index-linked pricing structures tied to LFP and NCM market indices.

Firebird’s board has approved a A$12 million capital raise, subject to shareholder approval, to fund the FEED study and early contractor mobilization. The company retains cash reserves of A$18 million as of the December quarter. Key upcoming milestones include completion of the FEED report in June 2024, binding offtake term sheets by September, and a final investment decision in November, positioning the company to begin construction in H1 2025.