Chariot Resources Partnership with Shanghai GreatPower Secures Lithium Offtake

Chariot Resources Secures Strategic Partnership with Chinese Battery Giant Shanghai GreatPower

Chariot Resources Limited (ASX: CC9) has commenced 2025 with a significant strategic announcement, signing a non-binding memorandum of understanding with Shanghai GreatPower Nickel & Cobalt Materials Co., Ltd. This Chariot Resources partnership with Shanghai GreatPower positions the company's upcoming Nigerian lithium assets within a global supply chain operated by one of China's leading battery materials companies.

The MOU establishes a framework for comprehensive collaboration spanning offtake agreements, potential financing support, and the development of local processing infrastructure in Nigeria. With Shanghai GreatPower generating annual revenues exceeding CNY 4.0 billion and supplying major clients including LG Energy Solution, CATL, BMW, and Samsung, this partnership provides significant validation for Chariot's Nigerian strategy.

Key Partnership Components

Substantial Offtake Potential

The centrepiece of the collaboration involves Shanghai GreatPower's commitment to potentially purchase up to 200,000 tonnes per annum of spodumene concentrate from one of Chariot's four Nigerian projects. This represents a substantial offtake volume that would provide Chariot with a secure sales channel directly into China's battery supply chain.

Furthermore, the key offtake terms include:

• Direct shipping ore delivery to Sagamu collection point in Nigeria
• Long-term exclusive priority offtake rights for selected project
• Pricing linked to international benchmarks for 5.5-6.0% Li₂O concentrate
• Subject to satisfactory due diligence and project development milestones

Financing and Development Support

Beyond offtake commitments, Shanghai GreatPower has agreed to discuss potential financing mechanisms. These include credit lines to support project exploration and development alongside offtake prepayment financing to accelerate production timelines.

In addition, development funding to fast-track exploration activities forms part of the discussions. This financing component addresses one of the key challenges facing junior miners – securing development capital to advance projects from exploration through to production.

Local Processing Infrastructure

Perhaps most strategically significant is the plan to evaluate developing a lithium processing facility in Nigeria. This would enable Chariot to convert run-of-mine ore into spodumene concentrate locally whilst reducing transportation costs and logistics complexity.

Moreover, this approach would allow the company to capture additional value from processing margins. It would also position Nigeria as a regional lithium processing hub.

Understanding Spodumene Concentrate: The Lithium Industry's Key Product

For investors new to the lithium sector, spodumene concentrate represents the primary commercial product from hard-rock lithium mines. Spodumene is a lithium-bearing mineral that, when concentrated through processing, typically contains 5.5-6.0% lithium oxide (Li₂O).

Why it matters to investors:

• Spodumene concentrate commands premium pricing in global markets
• It serves as the feedstock for lithium carbonate and lithium hydroxide production
• Processing into concentrate significantly increases the value of raw ore
• Transportation costs are reduced due to higher lithium content per tonne

The ability to produce high-grade concentrate locally in Nigeria would position Chariot to capture maximum value from its lithium resources. Furthermore, this approach would reduce logistics costs substantially.

Shanghai GreatPower: A Strategic Partner Profile

Shanghai GreatPower brings substantial credentials as a strategic partner, operating as a vertically integrated battery materials company with over two decades of experience. The company's production capacity demonstrates its industry standing:

The company operates six industrial facilities across China and is expanding into next-generation cathode materials. It has planned capacity of 10,000-20,000 tonnes per annum for lithium manganese oxide (LMO) and lithium manganese iron phosphate (LMFP).

Notably, LG Energy Solution holds a 4.02% equity stake in Shanghai GreatPower. This demonstrates the company's credibility within the global battery supply chain.

Nigerian Lithium: An Emerging Opportunity

Chariot's Nigerian lithium portfolio represents one of the largest consolidated holdings in the country, covering approximately 254 square kilometres across four project clusters. The assets comprise 8 exploration licences and 2 small-scale mining leases across four project clusters: Fonlo, Gbugbu, Iganna, and Saki.

Aaron Cao, Shanghai GreatPower's Chairman, noted: "I highly recognise the potential of Chariot's project to become a world-class hard-rock lithium resource, and I am confident that its team has the professional capability to advance development and production as quickly as possible."

This Chariot Resources partnership with Shanghai GreatPower comes as Chariot positions itself as the first publicly listed lithium company operating in Nigeria. This provides significant first-mover advantage in an emerging lithium jurisdiction.

Development Timeline and Next Steps

The MOU establishes a structured pathway toward definitive agreements through clearly defined phases. The immediate phase (Q1 2025) involves completing acquisition of the Nigerian lithium portfolio and commencing Shanghai GreatPower due diligence process.

Additionally, initiating technical evaluation of processing plant concepts forms part of the immediate objectives. The selection phase will see Shanghai GreatPower select their preferred project as the "Selected Project".

This triggers a 90-day exclusive negotiation period to finalise definitive offtake and financing agreements. Development requirements include completing appropriate exploration drilling programmes and defining JORC-compliant resource estimates.

Furthermore, conducting metallurgical studies and toll processing evaluations remains essential. Securing necessary permits and approvals will complete the development pathway.

Investment Thesis: Why This Partnership Matters

This strategic partnership validates several key aspects of Chariot's investment proposition. Supply chain integration provides direct connection to established Chinese battery materials ecosystem, creating a clear path to market for Nigerian production.

Financing de-risking through potential access to development funding reduces capital raising requirements and dilution risks for shareholders. Technical expertise from Shanghai GreatPower's processing and logistics experience accelerates development timelines.

The scale validation through 200,000 tonnes per annum offtake commitment indicates confidence in resource scale and quality. The partnership also positions Chariot within the broader strategic context of China's battery supply chain security objectives.

Why Should Investors Follow Chariot Resources?

Chariot Resources has positioned itself at the intersection of several compelling investment themes. As the first-mover in Nigerian lithium, Chariot holds early access to an emerging lithium jurisdiction with established artisanal mining history.

Strategic validation through this Chariot Resources partnership with Shanghai GreatPower provides third-party validation from a major industry player. Beyond Nigeria, Chariot maintains twelve lithium projects across the United States, providing geographic diversification.

The clear development pathway established by the MOU creates a structured route from exploration through to production. This includes built-in financing and offtake components.

Shanthar Pathmanathan, Executive Chairman & Managing Director of Chariot, commented: "Chariot, alongside our Nigerian partner, Continental Lithium Limited, is pleased to be in discussions with Shanghai GreatPower, a world-class battery materials company. As the first publicly listed lithium company operating in Nigeria, Chariot holds a significant early-mover advantage in this emerging region."

Strategic Implications for the Lithium Sector

This Chariot Resources partnership with Shanghai GreatPower reflects broader trends in lithium supply chain development. Supply security drives Chinese battery companies to increasingly secure upstream supply sources through direct partnerships rather than spot market purchases.

Processing localisation demonstrates the strategic value of establishing concentrate production closer to mining operations. African emergence sees Nigeria's position as an emerging lithium jurisdiction gain credibility through major Chinese industry player endorsement.

Integrated development through the combination of offtake, financing, and technical support provides a comprehensive development model for junior mining companies. The partnership demonstrates how strategic alliances between upstream explorers and downstream processors create value for both parties.

However, these arrangements also reduce supply chain risks significantly. For Chariot, the arrangement provides potential funding and guaranteed sales channels. For Shanghai GreatPower, it secures access to new lithium sources outside traditional supply regions.

With completion of the Nigerian acquisition expected in Q1 2025 and structured pathways for development financing, investors should monitor Chariot's progress carefully. The company's ability to execute on this strategic partnership will likely determine its success in establishing a material presence in the global lithium supply chain.

Are You Positioning Yourself for the Next Major Lithium Discovery?

Discovery Alert's proprietary Discovery IQ model provides instant notifications on significant ASX mineral discoveries, including emerging lithium opportunities that could mirror successful partnerships like Chariot's strategic alliance with Shanghai GreatPower. Understand why major mineral discoveries can lead to exceptional market returns whilst securing your market advantage through a 30-day free trial today.