Western Australian company Volt Resources has secured $5.8 million to fast-track its batteries business.
Those funds will be used primarily to commercialise the development of battery anode and other downstream graphite products in Europe and the US.
Graphite is a component of lithium-ion batteries, which are used in electric vehicles.
Additionally, the company is planning to use the funds to complete lithium-ion battery cycling test work and advance development funding activities for its Bunty graphite project in Tanzania.
The capital raising was conducted through the placement of 230 million shares priced at 2.5 cents each.
Peak Asset Management acted as lead manager for the placement, with Volt’s chair Asimwe Kabunga having subscribed for $700,000 worth of shares through his private company, Kabunga Holdings.
Volt chief executive Trevor Matthews said the raising had received strong demand from the company’s existing shareholders and new investors.
“This has provided the opportunity for Volt to raise an increased amount of funds to execute on the exciting programs of work that are currently under way in Europe, the US, Tanzania and Guinea,” he said.
Volt acquired 70 per cent of Ukrainian graphite producer ZG Group in July.
Shares in Volt were trading at $0.30 at 12pm AEST.