Neometals (ASX / AIM: NMT)

Announced that Primobius GmbH, the joint venture company owned 50:50 by Neometals and SMS group GmbH, has executed revised agreements with Stelco Holdings Inc.

Stelco Holdings Inc. and Primobius have agreed term extensions for the technology license and lithium-ion battery recycling JV option agreements entered into in late 2021

 

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Neometals	ASX / AIM : NMT
Stage	Production + development
Metals	Titanium + Vanadium + lithium + nickel
Market cap	A$442 m   @ A$.80
Location	Western Australia, Germany, Finland, USA

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Primobius Commercial Update

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Neometals Ltd (ASX: NMT & AIM: NMT) (“Neometals” or “the Company”), is pleased to announce that Primobius GmbH (“Primobius”), the joint venture company owned 50:50 by Neometals and SMS group GmbH (“SMS group”), has executed revised agreements with Stelco Holdings Inc. (“Stelco”).

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Highlights

• Stelco Holdings Inc. and Primobius have agreed term extensions for the technology license and lithium-ion battery recycling JV option agreements entered into in late 2021; and
• Stelco ‘Spoke’ plant supply agreement and option exercise decision timelines adjusted to align with completion of ‘Hub’ engineering cost study in June Q 2023.

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Under the revised technology licensing agreement (“Revised Stelco License”) and option agreement (“Revised Stelco Option”) (“together Revised Stelco License and Option”), Stelco has extended the option exercise timeline for Primobius to buy-in to its lithium-ion battery (“LiB”) 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 relationship (for full details refer to Neometals ASX announcement titled “Primobius to enter North America with Stelco for Recycling of Electric Vehicle Batteries” dated 31st December 2021 here).

The Stelco SPV plans to process LiB’s from end-of-life vehicles in North America that Stelco secures for its scrap steel requirements. Its first 50 tpd integrated LiB recycling
operation is planned to be located at Stelco’s former Hamilton Works outside Toronto, Canada.

Primobius’ offer of a plant supply contract to Stelco SPV is now planned for the September Q 2023 following the completion of customer trials and engineering cost studies in the June Q 2023 (for full details refer to Neometals ASX announcement titled “Primobius Operations Update” dated 25th November 2022).

Under the Revised Stelco License and Option:

• Primobius has the right to acquire between 25% and 50% of the equity in the Stelco SPV (a Canadian domiciled corporation) on or before 31 December 2023.
• If Primobius acquires equity in the Stelco SPV the technology license becomes royalty free, if not exercised the royalty remains at 10% gross sales basis.
• The date upon which termination rights arise if the Stelco SPV has not obtained executable term sheets for battery feedstock and critical reagents has been extended to 31 December 2023.

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To read the full news release, please click HERE

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.If you need clarification of any information contained in this note, or have any questions, I will be delighted to assist – Please email andrew@city-investors-circle.com

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City Investors Circle is based in the financial district in the City of London

We present interesting and exciting junior mining companies listed on the ASX and TSX stock exchanges to a group of city professionals, and private investors, all of whom are active investors with a mandate to invest in junior mining companies.

Our audience is selected and invited individually to ensure interest and relevance for the presenting company.

Meetings are non deal, small group, highly focused and engaged, with a lively Q and A to follow the main presentation.

We create awareness, and maintain interest in presenting companies by disseminating their future news to our entire investor group via email, social media, and our Monthly Review newsletter.

If you wish to present to our select group of active mining investors, please email andrew@city-investors-circle.com

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This website is not sponsored, we are truly independent, and will always remain so.

Companies featured here have either presented to the Circle in London, or have been selected because they are considered to have interesting projects, in good jurisdictions, run by an experienced management team.

All information used in the preparation of this communication has been compiled from publicly available sources that we believe to be accurate and reliable, however, we cannot, and do not, guarantee the accuracy or completeness of this.

These articles are for awareness and informational purposes only, and are not recommendations in any form.  Always consult an investment professional.

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Disclosure

At the time of writing the author holds no shares in the company mentioned.

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Neometals (ASX: NMT)

The  battery recycling JV between Neometals and Primobius, has officially opened its 10tpd commercial lithium-ion battery recycling plant in Hilchenbach, Germany.

Operations planned at 10tpd to commence in Q2 2022 pending receipt of operating permit.

 

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Neometals	ASX / AIM : NMT
Stage	Production + development
Metals	Titanium + Vanadium + lithium + nickel
Market cap	A$932 m   @ A$1.70
Location	Western Australia, Germany, Finland, USA

 

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Neometals’ Primobius JV Opens German Recycling plant at Hilchenbach, Germany.

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Neometals Ltd (ASX: NMT) (“Neometals” or “the Company”), is pleased to announce
that Primobius GmbH (“Primobius”), the incorporated joint venture (“JV”) company owned 50:50 by Neometals and SMS group GmbH (“SMS”), has officially opened its 10tpd commercial lithium-ion battery (“LIB”) recycling facility (“10tpd Shredding Plant”) in Hilchenbach Germany.

Primobius was founded to commercialise Neometals’ sustainable LIB recycling technology. Demonstration plant trials on the two stage recycling process have been successfully concluded.

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HIGHLIGHTS

• Neometals battery recycling JV, Primobius, has officially opened its 10tpd commercial lithium-ion battery recycling plant in Hilchenbach, Germany;
• Operations planned at 10tpd to commence in Q2 2022 pending receipt of operating permit;
• Cornerstone feedstock secured from specialist German battery waste company; and
• Successful completion of demonstration refinery trials enables engineering cost and feasibility studies for 50tpd operations to be finalised ahead of investment decisions in Q3 2022.

 

The Stage 1 ‘Shredding Circuit’ was modified in Q4 2021 to accelerate commercial operations and secure market share. Completion of the Stage 2 ‘Refinery Circuit’ test-work trials now enable the completion of the engineering cost study component of the feasibility study and consideration of financial investment decisions (“FID”)for larger 50tpd recycling plants.

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For brevity, this summary has been redacted, to read the full news release, please click HERE

 

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City Investors Circle is based in the financial district in the City of London

We present interesting and exciting junior mining companies listed on the ASX and TSX stock exchanges to a group of city professionals, and private investors, all of whom are active investors with a mandate to invest in junior mining companies.

Our audience is selected and invited individually to ensure interest and relevance for the presenting company.

Meetings are non deal, small group, highly focused and engaged, with a lively Q and A to follow the main presentation.

We create awareness, and maintain interest in presenting companies by disseminating their future news to our entire investor group via email, social media, and our Monthly Review newsletter.

If you wish to present to our select group of active mining investors, please email andrew@city-investors-circle.com

.

=======

,

This website is not sponsored, we are truly independent, and will always remain so.

Companies featured here have either presented to the Circle in London, or have been selected because they are considered to have interesting projects, in good jurisdictions, run by an experienced management team.

All information used in the preparation of this communication has been compiled from publicly available sources that we believe to be accurate and reliable, however, we cannot, and do not, guarantee the accuracy or completeness of this.

These articles are for awareness and informational purposes only, and are not recommendations in any form.  Always consult an investment professional.

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Neometals (ASX: NMT)

Primobius, Neometal’s battery recycling JV company, has confirmed it is entering the highly lucrative North American battery recycling market, which is the fastest growing lithium battery production region.   […] 

 

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NEOMETALS’ PRIMOBIUS JV TO ENTER NORTH AMERICA WITH STELCO FOR RECYCLING OF ELECTRIC VEHICLE BATTERIES

 

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Neometals Ltd (ASX: NMT) (“Neometals” or “the Company”), is pleased to announce that Primobius GmbH (“Primobius”), the joint venture (“JV”) company owned 50:50 by Neometals and SMS group GmbH (“SMS”), has executed binding option and licencing agreements(“Formal Agreements”) with Stelco Inc. (“Stelco”) and a wholly owned subsidiary of Stelco.

Stelco is a wholly-owned subsidiary of Stelco Holdings Inc., a Toronto Stock Exchange listed steelmaking company headquartered in Hamilton, Ontario.

 

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HIGHLIGHTS

• Primobius executes agreements to commercialise its recycling technology into North America, the fastest growing lithium battery production region, with leading Canadian steelmaker Stelco Holdings Inc. (TSX: STLC);
• Stelco plans to secure large volumes of end-of-life vehicles to source scrap steel feedstocks and recycle lithium-ion batteries in a proposed 50 tpd integrated operation at its Lake Erie Works;
• Primobius will licence a Stelco battery recycling special purpose vehicle and hold an option to acquire between 25% and 50% equity by contributing its pro-rata share of sunk evaluation and development costs; and
• Allows Stelco to focus on feedstock and approval activities and Primobius on its demonstration trials, engineering studies and 10 tpd commercial disposal operation in Hilchenbach, Germany.

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Stelco and Primobius entered into a MoU earlier in the year to evaluate future joint lithium-ion battery (“LIB”) recycling operations (for full details refer to Neometals ASX announcement entitled “Primobius Enters MOU for North America with Stelco to Construct a Plant for Extraction and Recycling of Battery Metals” released on 27th May 2021).

The parties worked together towards a significant North American LIB recycling business plan and have now entered into binding formal arrangements that allow Stelco to accelerate its sourcing of feedstock ahead of Primobius considering equity ownership of the Stelco battery recycling special purpose vehicle (“Stelco SPV”) responsible for battery recycling operations.

Specifically, Primobius has exclusively licenced itsbattery recycling technology (“Recycling Technology”) to Stelco SPV (“Licence”) in the field of end-of-life vehicle battery processing, to enable it to advance commercial LIB feedstock sourcing agreements and advance its approvals processes.

Under a separate option agreement (“Option”), Primobius can elect to acquire between 25% and 50% equity in Stelco SPV by contributing its pro-rata share of Stelco SPV’s sunk evaluation and development costs prior to exercising.

If the Option is not exercised by Primobius, under the Licence, Stelco will have the exclusive rights to utilise the Recycling Technology in North America to recycle LIBs removed from end-of-life electric vehicles, and Primobius will be entitled to a gross revenue royalty.

The commercial Formal Agreements contemplate Stelco SPV evaluating a 50 tpd (18,250 tpa) integrated Shredding (“Spoke”) and Hydrometallurgical Refinery (“Hub”) located at its Lake Erie Works in Ontario, Canada.

Primobius is capable of supplying Stelco SPV a network of 50 tpd Shredding plants across the licenced territory (Canada, USA, Mexico) to feed a larger scale, centralised hydrometallurgical refining Hub as and when required.

The Formal Agreements with Stelco represent a significant milestone for Primobius and its strategy to become the leading LIB recycler through the establishment of a second operating base, in North America.

The Stelco SPV will help meet the need for multiple large recycling facilities to manage significant anticipated volumes from end-of-life electric vehicle batteries originating from the World’s fastest growing cell making jurisdiction.

Stelco is now in a position to mature its feedstock targeting activities with direct access to a sustainable industrial scale recycling solution backed by globally recognized engineers and plant builders, SMS.

 

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Neometals management comments

“Neometals is understandably excited by the speed of commercial progress being made by Primobius.

 

“We recognise both the need to partner to secure access to large volumes of end-of-life LIB’s to ensure future growth and the present need to recycle significantly growing volumes of production scrap from LIB cell production in the US.

 

“Stelco is a leading supplier of steel to the Automotive OEMs and consumes scrap as part of its steel manufacturing process and presents the perfect opportunity for Primobius to enter the North American market as partners.

 

“Our 10 tpd commercial disposal plant in Germany addresses the needs of the LIB supply chain in Europe and builds our operating expertise as principal, further de-risking and enhancing the value of partnering with Primobius.

 

“Our impressive pipeline of development opportunities is reshaping our short-term strategy and we are prioritising market penetration over our ambitions to
operate as principal. Primobius’ flexible business models remain as key unique selling points.”

 

Neometals’ Managing Director Chris Reed

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For brevity, this summary has been redacted, to read the full news release, please click HERE

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