Neometals Opens Commercial Lithium-Ion Battery Recycling Plant
Neometals [ASX:NMT] shares are up close to 3% after opening its first commercial lithium-ion battery recycling facility in Germany.
Neometals is focused on minerals and materials used in electric vehicles and energy storage. They are involved in several projects that include lithium-ion battery recycling, a Vanadium recovery project, and lithium refinery.
From ‘research and development’ to ‘operations and revenue’
Neometals announced today that Primobius GMbH opened its 10 tons per day (tpd) commercial lithium-ion battery recycling plant in Hilchenbach, Germany. Primobius is a 50-50 joint venture between Neometals and SMS Group GmbH created to commercialise Neometals’ LIB recycling technology.
In an official opening celebrated by the Australian Ambassador to Germany, HE Philip Green, the company said the moment marked ‘the transition from a research and development program that commenced last decade into operations and revenue’ and that the commercial facility allowed Primobius ‘to showcase operational capabilities with customers’.
The shredding plant will go through a ramp-up period before reaching maximum capacity of 10 tpd. The initial feedstock needed to start operations will be coming from a German battery waste company, and Neometals expects to get a hold of additional supply from companies involved in the German electric vehicle industry.
The shredding plant is expected to generate near-term revenue along with proving the efficacy and operability of the shredding circuit.
Neometals is now waiting to receive its federal emission operation permit from the German authorities, something they say is ‘imminent’.
What could happen next?
With test work complete, the company is moving on to engineering cost and feasibility studies for a larger 50 tpd recycling plant.
Lithium carbonate prices have quadrupled in 2021 and are up 95% since the beginning of the year. With prices soaring and a supply crunch hitting the metal as electric vehicle sales accelerate, the expectation is that recycling will help improve the lithium shortages and create a circular economy.
Neometals’ share price is trading at $1.67 at the time of writing, up 2.77% from yesterday’s close.
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For Money Morning