Star Minerals Group has signed a memorandum of understanding (MoU) with Cooperative Mineral Resources (CMR) and energy storage company Octopus Technologies (OTI) to cooperate on developing a mine-to-market manganese-based battery technology in the US.
Star and CMR, which is owned 100% by Crow Wing Power, intends to enter an agreement forming a joint venture (JV) to develop the Emily Manganese/Iron Ore Project.
Upon establishing the technical and economic viability of the Emily Manganese/Iron Ore Project, Star intends to fully develop it.
Initially the focus will be on the production of EMD to be sold to OTI in an offtake agreement between OTI and the CMR/Star JV under terms to be established.
In turn, OTI has completed and signed a sales distribution agreement, for its storage battery, with a significant global player in the market.
CMR and Star intend to complete and sign the JV agreement by the end of February 2015, when OTI and the JV will also have signed the offtake agreement.
According to Star, the components of the mine-to-market business model are said to be in their early stages, from mine development to the testing, certification and production of batteries.
Star Minerals president and CEO Jim Engdahl said: "I am extremely excited about this project and pleased to be working with the high calibre of people from CMR and OTI in developing what has the potential to be an important type of storage battery for specific applications."
CMR CEO Bruce Kraemer said: "Currently, there is no production of electrolytic manganese in North America, a key factor for this continent to remain globally competitive in the green energy field."