The MoU could lead to a binding offtake agreement after completion of certain levels of feasibility study on the project.
Ningbo represents end users interested in high purity, coarse flake graphite for manufacture of batteries for electric vehicles.
Under the MoU, IMX would supply 25,000t of graphite concentrate a year for five years.
Both the parties have an option to extend the supply period, subject to a successful supply relationship will be built during the initial contract term.
Ningbo plans to buy a big quantity of graphite, and IMX has indicated a preference for its off take agreements to be diversified across multiple parties.
IMX CEO Phil Hoskins said: "This MOU reflects the underlying strengths of the Chilalo project and builds on the strong early stage interest expressed by a number of parties.
"China-Base Ningbo is a sizeable trading company with significant access to end users of graphite and we look forward to working with them to move towards a binding agreement."
