Neometals Provides Lithium Chemicals Co-operation Update

About Neometals

Neometals Ltd (ASX:NMT, AIM:NMT) is an innovative Australian company developing proprietary technologies to sustainably recover critical battery materials. Its recycling and mineral extraction processes promise to bolster supply chain resilience while minimizing costs and environmental impact.

With its strategic focus on lithium-ion battery recycling and production, Neometals provides exposure to the high-growth electric vehicle and renewable energy storage markets. Its diversified projects create multiple opportunities for investors to capitalize on the global transition to clean energy and transport.

Neometals has three core pillars leveraging its proprietary technologies to produce battery-grade materials: their Lithium-ion Battery Recycling Primobius joint venture with German plant builder SMS Group (50% ownership), their Lithium Chemicals business with proprietary electrolysis process called ELi (70% ownership) and their Vanadium Recovery business, a recovery technology to sustainably extract high-purity vanadium pentoxide from steelmaking by-products (100% ownership).

Lithium Chemicals Update

Neometals recently provided an update on its Lithium Chemicals business unit and the proposed Portugal lithium refinery. While a Co-operation Agreement between Neometals and partner Bondalti Chemicals SA has expired, the companies will maintain joint funding of evaluation studies. Discussions are underway to formalize continued collaboration on the project.

The initial agreement envisioned a 50:50 joint venture between Neometals' subsidiary Reed Advanced Materials (RAM) and Bondalti. Operating adjacent to Bondalti's facilities, the refinery would produce battery-grade lithium hydroxide using Neometals' proprietary ELi extraction process.

While the expiry represents a speed bump, Neometals stated both parties remain committed to advancing the project. The aim is to provide updated formal agreements supporting ongoing pilot trials and development studies.

The setback highlights the risks inherent in developing new mineral projects. However, Neometals maintains strong leverage to surging lithium demand through its differentiated ELi technology. With lithium prices projected to rise over 200% by 2030 on booming EV usage, Neometals is positioned to benefit from supplying this key battery material.

Diversified Projects Provide Multiple Shots on Goal in High-Growth Markets

Rather than depend on a single project, Neometals wisely maintains diversified operations across the battery value chain. Commercial recycling, lithium production and vanadium recovery give it parallel opportunities to capitalize on market trends.

In recycling, Primobius' expansion into North America will leverage the region's vast potential for spent EV and electronics batteries. With the US aiming to reach 50% EV sales by 2030, feedstock volumes could surge over 25 times, representing an immense recycling opportunity.

The green steel movement also bolsters the prospects for Neometals' vanadium extraction technology. As steelmakers like SSAB and H2Green Steel work to decarbonize production through hydrogen, demand is rising for specialty alloys using vanadium. Neometals can play a key role in supplying this battery metal.

Conclusion - Leveraged to High-Growth Markets with Sustainable Technologies

With exposure across battery recycling and materials production, Neometals is strongly leveraged to the fast-growing EV, renewable energy storage and green steel markets. Its innovative extraction technologies promise to supply these industries cost-effectively while minimizing environmental impacts.

While developments in Portugal face uncertainty, Neometals' diversified projects provide multiple opportunities in the global battery supply chain. For ESG-focused investors seeking exposure to the energy transition megatrend, Neometals presents an appealing opportunity.