Renascor signed a 40-year option to lease agreement with SA government owned utility SA Water over a 20 hectare site at Bolivar, 20km from the port next to SA Water's Bolivar water treatment and industrial facilities.

The facility will convert graphite concentrate from the Siviour graphite deposit into purified spherical graphite for lithium-ion battery anode manufacturers.

Siviour will be a conventional open pit mine and crush operation with grinding and flotation circuits and a concentrator.

The mine is located on the Eyre Peninsula.

With the 20ha site providing plenty of space, Renascor plans to increase planned stage 1 PSG production of 28,000 tonnes per annum and boost stage 2 production.

Renascor managing director David Christensen said securing the site with SA Water gave certainty for a key component of the company's plans to become a leading producer of PSG for the growing lithium-ion battery sector.

"In securing the strategically positioned and scalable Bolivar site, Renascor will be able to leverage off the high quality of the Siviour resource by vertically integrating the mine and concentrator with a state-of-the-art battery anode material manufacturing facility to supply responsibly produced, 100% Australia-made PSG," he said.

"We look forward to working with SA Water and the SA government as we bring a major new industry to the state."

Christensen said Renascor was updating its battery anode material study to integrate the facility with the mine.