The agreement has been validated by the EU group committee and is now working towards the final steps of documentation, verification and completion.
The initial part of the package is an investment in Infinity of a staged €800,000 (about $1.5 million) at a 66% premium to last traded share price, to fund Phase I of Infinity’s innovative lithium conversion process.
EIT InnoEnergy will also lead fundraising activities for Phase II of the pilot plant project (early estimate of €1.6 million to €2.4 million or $3 million to $4.5 million).
Strategic issue for EU’s battery value chain
Infinity managing director Ryan Parkin said: “We aim to turn this MoU into a binding agreement quickly.
“The financial and collaborative agreement and endorsement of the major EU Platform Steering group (EIT InnoEnergy) will bring together project partners throughout the EU lithium-ion battery supply chain to fund and develop EU’s largest battery grade lithium hydroxide plant.
“Our project is a critical component in the European Commission Vice President Maroš Šefčovič’s foresight to address the key strategic issue for the EU’s battery value chain, namely to develop access to raw materials and refining capacity, whilst promoting a high sustainability criteria for batteries placed on the EU market.
“Over the last 14 months Infinity has been focused on progressing the San Jose Lithium Project with key European stakeholders, as the EU seeks to address the availability of key raw materials and battery grade chemicals required to develop a fully integrated lithium-ion battery supply chain.”
Supporting rapid project development
EIT InnoEnergy can assist Infinity in securing full project financing including both equity and debt, as previously demonstrated through successful assistance in project funding within the European lithium-ion battery supply chain.
The EU group will support and facilitate negotiations with European off takers through the European Battery Alliance (EBA) network.
EIT InnoEnergy will mobilise their ecosystem, including allocation of personnel, to support the development of the project as rapidly as possible.