The sulphates are being sent to the ASX-listed company's Korean-based offtake partner, SK Innovation, and "may be used directly in SK Innovation's electric vehicle battery manufacturing process".

According to Australian Mines, this would the first time such products from Australia could be used without the need for further refinement, with the sulphates produced in partnership with Simulus Group "without utilising a third-party commercial lab for any part of the process".

Australian Mines said the Perth-based demonstration plant is expected to continue to operate for the next 12 to 24 months and produce additional battery-grade material for SK from ore to be sourced from the Sconi cobalt-nickel-scandium project in northern Queensland.

SK has previously signed a binding offtake agreement for 100% of the cobalt and nickel sulphate production from the Sconi project, for an initial seven-year contract term with an additional six-year extension option.

The agreement ultimately covers up to 12,000t of cobalt sulphate per annum and up to 60,000tpa of nickel sulphate.

Australian Mines is estimated to have about A$9 million cash.

Shares in the company were up 9% to 9.7c in afternoon trade, capitalising Australian Mines at $260 million. The stock was trading at levels around 2c last October.