Neometals Advances Sustainable Battery Recycling With Engineering Cost Study Results

Neometals Ltd (ASX: NMT), an emerging sustainable battery materials producer, announced the successful completion of an engineering cost study for the hydrometallurgical refinery section of a lithium-ion battery (LiB) recycling facility. The refinery or "Hub" is designed to process 12,000 tonnes per year of cathode and anode materials ("Black Mass") recovered from recycling 21,000 tonnes per year of LiB modules and cells at the company's shredding "Spoke" plant.

The total capital expenditure for the integrated Spoke and Hub recycling facility is estimated at €377 million, with annual operating costs of €83 million. The Hub section alone has an estimated capital cost of €274 million and operating cost of €56 million per year. Lithium is expected to be the largest revenue source and in the lowest quartile cost position compared to other lithium producers.

This engineering study demonstrates the strong economics of Neometals' proprietary battery recycling technology, which aims to recover critical battery materials like lithium, nickel and cobalt from end-of-life batteries in a sustainable, low-carbon manner. The results position Neometals to offer integrated recycling solutions to battery and electric vehicle manufacturers looking to establish closed-loop supply chains and meet increasing regulatory requirements around battery recycling.

With rapidly growing demand forecast for battery materials, Neometals' recycling technology provides a sustainable domestic source of these critical minerals and supports the circular economy. Investors should view these positive engineering study results as a derisking milestone as Neometals advances towards commercial-scale deployment of its recycling plants under a licensing business model. Conclude with a call to action for investors to consider Neometals as a strategic investment opportunity in the battery materials supply chain.