21 March
2024
Neometals Ltd
("Neometals" or "the Company")
Lithium Chemicals
Update
Highlights:
· Reed
Advanced Materials (Neometals 70%, Mineral Resources 30%) and
Lifthium Energy have ceased discussions in relation to updated
arrangements for the evaluation of a lithium refinery in Portugal;
and
· Reed
Advanced Materials will sole fund the final stage of the pilot test
work program for its patented ELi™ process and will pursue a
low-capital, low-risk technology licensing business
model.
Sustainable process technology
developer, Neometals Ltd (ASX: NMT & AIM: NMT) ("Neometals" or "the Company") advises that its joint
venture company, Reed Advanced Materials Pty Ltd ("RAM") (70% NMT, 30% Mineral Resources
Ltd) has ceased discussions with Lifthium Energy SA ("Lifthium") in relation to updated
arrangements for the further evaluation of
a lithium refinery to produce lithium chemicals in Estarreja,
Portugal. RAM will proceed to complete the final stage of pilot
test work and intends to commercialise its proprietary
ELi™ process which comprises an extensive patented
technology package through a licensing
business model.
RAM has been co-funding evaluation
activities with Bondalti Chemicals SA ("Bondalti") and negotiating a new
co-operation framework with Bondalti's sister company,
Lifthium.[i] RAM and
Bondalti completed an Engineering Cost
Study ("ECS")
to AACE Class 3 standard for a 25,000tpa lithium
hydroxide monohydrate merchant refinery in Portugal and have been
advancing a phased pilot scale test work program in Canada
("Pilot").
The ECS confirmed the technical
feasibility of the process to purify and convert lithium chloride
to lithium hydroxide with potential lowest-quartile operating costs
and capital cost intensity. Additionally, the first stage of the
Pilot successfully purified lithium chloride from an existing South
American operation to the specification required for conversion by
electrolysis using ELi™[ii]. Despite the
compelling operating / capital cost metrics and successful
purification Pilot activities, RAM and Lifthium have been unable to
agree terms for further joint evaluation activities and licensing
arrangements.
RAM is fully funded to complete the
final stage of Pilot test work and will continue to test
third-party brines for potential partners under a low-capex,
low-risk technology licensing business model to generate future
royalty income.
Neometals Managing Director Chris Reed said:
"Neometals appreciates the collaboration with Bondalti in
advancing the commercialisation of our ELi™
process. We are committed to the commercialisation of
ELi™ which we see as the future
of sustainable low-cost lithium production from brines to meet the
demands of the transport electrification and energy storage
thematic. In light of the current price cycle, we will pivot
towards a more conservative business model for
commercialisation."
Authorised on behalf of Neometals by
Christopher Reed, Managing Director.
ENDS
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 Ltd - NOMAD & Joint
Broker
|
|
Neil McDonald
|
+44 (0)131 220 9771
|
Peter Lynch
|
+44 (0)131 220 9772
|
Adam Rae
|
+44 (0)131 220 9778
|
|
|
About Neometals
Neometals is commercialising a
portfolio of sustainable processing solutions that recycle and
recover critical materials from high value waste streams. The
Company collaborates with partners and customers to facilitate
circular supply chains and reduce the environmental burden of
traditional mining in the global transition to a sustainable
economy. Neometals' 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, fully integrated, 21,000tpa plant offer
to Canadian company Stelco in the JunQ 2025;
· Lithium Chemicals (70%
technology) - Commercialising
patented ELi™ 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. Pilot scale test work and Engineering Cost Study update in
progress. Commercialisation strategy is through technology
licensing model; and
· Vanadium Recovery (100%
technology) - aiming to enable
sustainable production of 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