Global mining giant Rio Tinto has taken a punt on Brisbane-based battery company Graphene Manufacturing Group, signing a $6 million deal to develop and use its next-generation graphene aluminium-ion batteries in mining trucks and for energy storage at its mines.
As companies worldwide try to find an alternative to the dominant lithium-ion batteries, the joint development agreement is a breakthrough for Calgary’s TSX Venture-listed GMG with $125 million market cap.
If the deal is successful, GMG’s graphene aluminium-ion batteries, which it says charge 70 times faster, last longer and are more environmentally friendly than lithium-ion batteries, could be used in other applications, from electric vehicles, mobile phones to drones.
Rio Tinto, which has committed to net-zero emissions by 2050, said the two-year agreement aims to accelerate the development of GMG’s graphene aluminium-ion batteries for use in heavy mobile equipment, such as trucks, and grid-energy storage applications at its mining and mineral operations.
The new $6 million agreement is the first major deal for GMG and its founder and managing director Craig Nicol, a former Shell executive.
GMG will retain ownership of the intellectual property of the graphene aluminium-ion battery pouch cell and battery pack. On completion of the joint project, Rio Tinto would have the right to procure and use the batteries in their operations.
The deal does not stop GMG selling the technology to other mining companies, but Rio Tinto will receive a financial payment for helping back the technology.
Collaboration with Rio Tinto is a key step for GMG, which would develop prototypes at its factory in Brisbane’s western suburbs, Mr Nicol said. While the initial prototype will be used for mining equipment, the Rio Tinto deal would help prove the battery technologies for other applications.
“The end battery pack will be used for mining equipment. This will be the most rigorous production and application for our product. When we get there we will have a battery that can be used anywhere,” Mr Nicol told The Australian Financial Review.
“This is a battery that is very fast charging and, importantly, is safe.”
Lithium-ion batteries dominate at present. China has about 90 per cent of the materials required for production, and they are cheap because they are produced at scale.
Where GMG hopes to gain the advantage is its process for making graphene powder straight from gas, while competitors are still using the more costly process of making graphene from graphite – a process that needs a number of washing processes.
Another key advantage of aluminium-ion batteries is the increased density – you can fit three times the electrons than in a lithium battery – and they do not overheat to create fire risks.
They are also safer too. A coin cell graphene aluminium-ion battery is not lethal if it were swallowed by a small child, but lithium-ion batteries can be.
Compared with lithium batteries, graphene aluminium batteries do not need lithium, copper, cobalt, manganese or rare earth materials to be mined for their production. They are also rechargeable and 100 per cent recyclable too.
The battery pouch cell for Rio Tinto, which will be used to replace diesel trucks, will be the “size of a house”, Mr Nicol says.
A 100 kilowatt-hour battery in a Tesla car uses about 8000 cells. The GMG battery for a 2000 kilowatt-hour battery will use about 160,000 cells.
Mr Nicol said he expected the battery cell to be ready in about a year, with a prototype battery pack to be ready for trials with Rio Tinto within two years.
“We still expect it to be lighter, smaller and faster-charging that a lithium-ion battery,” he said.
Rio Tinto chief scientist Nigel Steward said it was a crucial time to partner with companies like GMG to accelerate battery technology and innovation.
“We are looking forward to continuing our collaboration and leveraging our combined expertise and resources to develop a truly green battery that has the potential to improve the way we supply and store energy,” he said.
Rio Tinto also has an existing agreement with GME about integrating some energy-saving products into operations as well as supply aluminium for GMG’s commercial battery operations which could be based in the industrial city of Gladstone in central Queensland.
