TIDMNMT
RNS Number : 7570X
Neometals Ltd
22 December 2023
This announcement contains inside information
22 December 2023
Neometals Ltd
("Neometals" or "the Company")
Primobius Commercial Update
Highlights
-- Stelco Inc. ("Stelco") has extended the expiry date of
Primobius' option to acquire up to 50% of its lithium-ion battery
recycling business to 30 June 2025;
-- Primobius has amended the definition and timing of product
readiness under the technology licence agreement to align with a
fully-integrated plant offer before 30 June 2025, rather than a
standalone spoke followed by the hydrometallurgical refinery hub;
and
-- Primobius' commercial spoke product readiness remains on
track for April 2024 following installation of the Mercedes-Benz
spoke.
Innovative battery materials recycler, Neometals Ltd (ASX: NMT
& AIM: NMT) ("Neometals" or "the Company"), advises that
Primobius GmbH ("Primobius"), the joint venture company owned 50:50
by Neometals and SMS group GmbH ("SMS group"), has amended the
technology licence and option agreements with 1340455 B.C. LTD,
Stelco's lithium-ion battery recycling special purpose vehicle
("Stelco SPV") .
Since 2021, the parties have been conducting due diligence,
front-end engineering studies and building the business case for a
long-term commercial recycling operation[1]. The Stelco SPV holds
an exclusive licence from Primobius to process LiB's from
end-of-life vehicles (excluding German carmakers) in North America.
Primobius holds an option to acquire up to 50% equity in the Stelco
SPV. The preferred business case is the start up as a
fully-integrated operation to provide the carmakers, who supply the
end-of-life EVs, with a secure supply of key battery cathode
chemicals.
The option agreement amendment extends the option expiry date
for Primobius to buy-in to Stelco SPV until 30 June 2025. The
technology licence amendment changes the product offering from a
shredding spoke to a hydrometallurgical refinery hub and the
product readiness date to 30 June 2025. Primobius is working to
achieve product readiness for its commercial spoke plants by April
2024.
Primobius plans to offer a fully-integrated plant supply
contract to the Stelco SPV (and other customers) in the June Q 2025
following completion of a detailed engineering study and final
factory acceptance testing of the fully-integrated Mercedes-Benz
2,500tpa pilot plant.
Neometals Managing Director Chris Reed said:
"Primobius values the strong working relationship with Stelco.
The shift in business model to offer North American car makers a
secure supply of battery materials from their end-of-life electric
vehicles is a reflection of what the end customer wants. Primobius
recycling plants provide their owners with a recycling solution to
recover high-purity battery materials at lower carbon-footprint
than from virgin mined materials.
We committed to becoming the leading provider of LiB recycling
plants through a stepwise approach to demonstrate the efficacy of
our plants at increasing scales, firstly with Mercedes at 2,500tpa
then rolling out the 20,000tpa offering worldwide."
Authorised on behalf of Neometals by Christopher Reed, Managing
Director.
For more information, please contact:
Neometals Ltd
Chris Reed, Managing Director & Chief Executive
Officer +61 8 9322 1182
Jeremy McManus, General Manager - IP & IR +61 8 9322 1182
Cavendish Capital Markets Limited - NOMAD
& Joint Broker
Neil McDonald +44 (0)131 220 9771
Peter Lynch +44 (0)131 220 9772
Adam Rae +44 (0)131 220 9778
RBC Capital Markets - Joint Broker +44 (0) 20 7653 4000
Paul Betts
Jamil Miah
Camarco PR + 44(0) 20 3 757 4980
Gordon Poole
Emily Hall
Lily Pettifar
About Neometals
Neometals has developed and is commercialising three
environmentally-friendly processing technologies that produce
critical and strategic battery materials at lowest quartile costs
with minimal carbon footprint.
Through strong industry partnerships, Neometals is demonstrating
the economic and environmental benefits of sustainably producing
lithium, nickel, cobalt and vanadium from lithium-ion battery
recycling and steel waste recovery. This reduces the reliance on
traditional mine-based supply chains and creating more resilient,
circular supply to support the energy transition.
The Company's three core business units are exploiting the
technologies under principal, joint venture and licensing business
models:
-- Lithium-ion Battery ("LiB") Recycling (50% technology) -
Commercialisation via Primobius GmbH JV (NMT 50% equity). All
plants built by Primobius' co-owner (SMS group 50% equity), a
150-year-old German plant builder. Providing recycling service as
principal in Germany and commenced plant supply and licensing
activities as technology partner to Mercedes-Benz. Primobius
targeting first commercial 21,000 tpa plant offer to Canadian
company Stelco in the DecQ 2023;
-- Lithium Chemicals (70% technology) - Commercialising patented
ELi(TM) electrolysis process, co-owned 30% by Mineral Resources
Ltd, to produce battery quality lithium hydroxide from brine and/or
hard-rock feedstocks at lowest quartile operating costs. Co-funding
Pilot Plant trials in 2023 with planned Demonstration Plant trials
and evaluation studies in 2024 for potential 25,000tpa LiOH
operation in Portugal under a 50:50 JV with related entity to
Bondalti, Portugal's largest chemical company; and
-- Vanadium Recovery (100% technology) - aiming to produce
high-purity vanadium pentoxide from processing of steelmaking
by-product ("Slag") at lowest-quartile operating cost. Targeting
partnerships with steel makers and participants in the vanadium
chemical value chain under a low risk / low capex technology
licensing business model.
For further information visit www.neometals.com.au
[1] for full details refer to Neometals ASX announcements titled
"Primobius to enter North America with Stelco for Recycling of
Electric Vehicle Batteries" dated 31(st) December 2021 and
"Primobius Commercial Update" dated 6 January 2023
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