Sparc Technologies Limited advised that it has entered into a Strategic Partnership Agreement with the Queensland University of Technology (QUT). The Strategic Partnership Agreement is an umbrella agreement that will support a long term partnership and commitment between the parties, affording Sparc the first right of refusal to commercialise technologies developed from projects Sparc undertakes with QUT. It also provides a framework for long term cooperation whereby Sparc and QUT agree to work together to identify and undertake new projects.

Concurrent with signing the Strategic Partnership Agreement, Sparc has commenced a project with QUT that will develop a novel process for the production of hard carbon using low cost sustainably sourced green bio-waste targeting the Sodium ion battery industry. The hard carbon materials will be characterised and tested in a Sodium ion cell format at QUT's world-class facilities for battery development and testing, including the National Battery Testing Centre and Central Analytical Research Facility (CARF). Sparc has also engaged an experienced battery technology consultant to advise on the project and to assist with commercialisation.

A high performing, low cost, sustainably sourced anode material for Sodium ion batteries is meeting a need for what is a growing alternative battery technology. Existing hard carbon materials are typically sourced from carbonaceous precursors such as pitch (a by-product of the oil & gas industry) which undergo lengthy heating at high temperatures. This is a very energy consuming process, which combined with a high emission feedstock, has significant environmental impacts.

Furthermore, with China being the world's dominant supplier of hard carbon materials, this technology aims to provide an alternative western supply source thereby reducing sovereign risk for cell manufacturers. The themes of sustainability and localising supply chains have been gaining in importance across industries and are of particular importance in batteries where China currently dominates the production of key raw materials and cells. Northvolt's recent partnership with Stora Enso to develop sustainable batteries using wood based products from Nordic forests, in an effort to keep the supply chain local is an example of this.

The Strategic Partnership Agreement is binding, effective immediately and is not subject to any material conditions precedent. The initial term of the Agreement is three years and the main objective is to develop functional materials using graphene and carbon material and related manufacturing process technologies, for a range of applications including the coatings, composites, cementacious and energy industries. There are no cash payment obligations between the parties.

While Sparc sees the Strategic Partnership Agreement as having the potential to create long term value for the Company, Sparc does not expect the Strategic Partnership Agreement to have any direct financial impacts on the Company in the near term.