Neometals Ltd (ASX: NMT)
Announced the execution of a formal agreement governing the formation and operation of an incorporated 50:50 joint venture (“JV”) with SMS group GmbH called Primobius GmbH.
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Neometals and SMS create Lithium Battery Recycling JV
Neometals Ltd (ASX: NMT) (“Neometals” or “the Company”), is pleased to announce the execution of a formal agreement governing the formation and operation of an incorporated 50:50 joint venture (“JV”) with SMS group GmbH (“SMS
group”), called Primobius GmbH (“Primobius”).
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Primobius will commercialise Neometals’ proprietary lithium-ion battery (“LiB”)
recycling technology, which offers a unique and sustainable method for recovering valuable lithium, nickel, cobalt and other materials from spent and scrap electric vehicle and consumer electronic LiB’s. Recovered and refined product materials will be in
a form that can be reused in the battery supply chain.
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The creation of the JV follows extensive due diligence by SMS group on Neometals scale-up activities for its patent-pending hydrometallurgical process, including its recently completed successful pilot trials (“Pilot”).
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Neometals previously executed a binding memorandum of understanding (“MOU”) with SMS group (see Neometals ASX announcement dated 17th October 2019 for further details) allowing SMS group to complete exclusive due diligence on a transaction to co-fund final stage process evaluation before co-developing commercial LiB recycling operations with Neometals.
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SMS group is a highly capable project delivery partner who can accelerate commercialisation of the technology globally. Primobius represents a significant milestone in the generation and realisation of value for Neometals’ battery recycling project and its sustainable materials recovery strategy going forward.
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The SMS partnership validates both the economic scale and scope of the
recycling opportunity, the technical feasibility of the process and the viability of our flexible business models to meet the needs of the entire EV battery supply chain, from cathode through to car makers.
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HIGHLIGHTS
• Binding agreement to establish a 50:50 JV (“Primobius GmbH”) to commercialise Neometals proprietary lithium battery recycling process for regeneration of sustainably produced secondary battery materials from growing volumes of scrap and end of life batteries
• Primobius will construct a Demonstration Plant at SMS’s manufacturing site in Germany to validate the process at industrial scale, the final step ahead of a decision to commence commercial-scale operations in Europe, the largest emerging LiB production hub outside China
• The Demonstration Plant will enable potential customers to generate battery materials and cathode chemicals from their own feedstocks and generate process data to guide the design and operation of the first commercial facility
• Commercial operations will target safe processing of a wide range of lithium battery formats and chemistries to generate a responsible source of materials for reuse in the battery supply chain, reducing risk/reliance on primary mineral-based extraction and electric vehicle carbon footprint.
To read the full news release, please click HERE
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