Li-Metal Corp. and Mustang Vacuum Systems sign definitive agreements for partnership on Lithium-metal anode business
Li-Metal Corp., a developer of lithium metal anode and lithium-metal technologies critical for next-generation batteries, announced the completion of the definitive agreements for its previously announced exclusive partnership with Mustang Vacuum Systems, a global developer and manufacturer of industrial scale physical vapor deposition (PVD) equipment. (Earlier post.)
The signing of the Agreements relates to the parties’ previously announced strategic collaboration agreement for the exclusive supply of high performance PVD machines and advanced battery anode materials for next-generation batteries. In addition to the strategic collaboration agreement, Li-Metal and MVS have entered into a contract production agreement to share their respective proprietary technology to create a commercial-scale PVD machine to produce anode material at MVS’s manufacturing facility in Sarasota, Florida.
Li-Metal and MVS will jointly operate this PVD machine, which is expected to be commissioned by mid-2024.
The partners expect to accelerate the commercialization of Li-Metal’s roll-to-roll PVD anode technology by:
leveraging existing and new customer relationships to accelerate the adoption of Li-Metal’s ultra-thin anodes;
jointly building Li-Metal’s first commercial-scale PVD machine;
increasing the annual production capacity of anode materials 50x more than current pilot production capacity (on a linear metre basis); and
meeting the growing demand of OEMs and next-generation battery developers seeking to differentiate their products through the utilization of Li-Metal’s cost effective ultra-thin anode technologies.
Li-Metal will receive competitive pricing on MVS’ PVD machines and services, and MVS will receive the right of first refusal to contribute capital to a joint venture entity that intends to build a facility for manufacturing and selling battery anodes.
With the signing of the agreements, Li-Metal has issued 4,375,000 Li-Metal common shares to MVS and 21,000,000 warrants to purchase common shares of Li-Metal, with the 4,375,000 common shares of Li-Metal valued at CAD $0.29 per share or an aggregate of $1,268,750. The warrants are exercisable for a period of five years at a price of CAD$0.627 per common share.
As a part of the partnership, should MVS accumulate a holding of 10,000,000 common shares, they will have the right to observe the Company’s board proceedings and nominate one director to Li-Metal’s board at the first available opportunity. At that time, Li-Metal will also have the opportunity to observe MVS’ board proceedings related to their battery business.
Upon exercise of the 21,000,000 warrants, MVS will hold 25,375,000 common shares of the Company representing 14.07% of the issued and outstanding common shares (on a non-diluted basis) of the company.