Neometals Ltd.: Quarterly Activities Report for the Quarter Ended 30 September 2022
31 October 2022
HIGHLIGHTS
CORPORATE
- Cash balance A$50.8 million, receivables and investments of A$29.8 million and no debt; and
- Neometals included in ASX 300, first recycling revenues booked by Primobius and 3rd annual Sustainability Report completed.
CORE BATTERY MATERIALS BUSINESS UNITS
Lithium-ion Battery (“LIB”) Recycling Operation (50% NMT via Primobius GmbH, an incorporated JV with SMS group GmbH)
- Appointment of experienced executive, Merrill Gray, in dedicated ‘Head of Recycling’ role;
- Continued ramp-up of the commercial 10tpd shredding and beneficiation plant in Hilchenbach, Germany, commencement of sales of an intermediate nickel/cobalt product to multiple offtakers;
- Cooperation agreement with Mercedes-Benz recycling subsidiary becomes legally binding, contemplates supplying and installing equipment for a 10tpd integrated refinery at Mercedes-Benzs’ Kuppenheim site, Germany;
- Cost estimates announced for potential shredding plant, advancing engineering cost study for matching refinery at same greenfield German site; and
- Advancing front-end engineering studies for Mercedes-Benz / Stelco plant supply arrangements.
Vanadium Recovery Project (“VRP”) (earning into 50:50 JV with Critical Metals Ltd)
- AACE®[i] Class 3 Engineering and Cost Study confirms potential for lowest quartile operating costs;
- Feasibility study, including above cost estimates, is being advanced in parallel with negotiations for additional slag feedstock from Swedish Steel AB, by-product offtake with Betolar plc, product offtake and financing; and
- Finnish environmental permit was granted post quarter end.
Lithium Chemicals Project (earning into 50:50 JV with Bondalti Chemicals SA via Reed Advanced Materials Pty Ltd (“RAM”) (NMT 70:30 Mineral Resources Ltd)
- Engineering cost study activities well-advanced for ~25,000tpa lithium hydroxide operation using RAM’s ELi® Process at Bondalti’s Estarreja chlor-alkali operation in Portugal; and
- Commenced confirmation testing of multiple lithium brine samples to assist with design of, and feedstock sourcing for, proposed pilot trials in Canada and subsequent demonstration plant in Estarreja, Portugal.
UPSTREAM – MINERAL EXTRACTION
Barrambie Titanium and Vanadium Project (“Barrambie”) (100% NMT)
- Commercial smelting trials on mixed gravity concentrates successfully completed in China with leading chloride-grade titanium slag producer Jiuxing. Test work results expected for release in Nov 22; and
- Pre-feasibility study advanced with completion on track for Dec 2022. Study will allow the evaluation of the production of direct shipping ore, mixed gravity concentrates and separate ilmenite and iron/vanadium concentrates for export from Geraldton.
COMPANY OVERVIEW
Neometals’ focus is the continuous development and commercialisation of our proprietary innovative technologies with strong global partners to generate value through sustainable production of battery materials.
Decarbonisation, sustainability and resilient supply chains are the key challenges for the energy storage and electric vehicle supply chain. Our technologies, particularly those in battery materials recycling and recovery, reduce reliance on traditional mining and processing, and support circular economic principles.
Neometals has three core battery materials businesses commercialising proprietary, low-cost, low-carbon process technologies:
- Lithium-ion Battery (“LIB”) Recycling (50% equity)– to produce nickel, cobalt and lithium from production scrap and end-of-life LIBs in an incorporated JV with leading global plant builder SMS group. The Primobius JV is operating a commercial disposal service at its 10tpd plant in Germany and is the recycling technology partner to Mercedes-Benz. Primobius’ first 50tpd operation will be in Canada, an investment decision to partners with Stelco is expected to reach investment decision in MarQ 2023;
- Vanadium Recovery (earning 50% equity) – to produce high-purity vanadium pentoxide via processing of steelmaking by-product (“Slag”). Finalising evaluation studies on a 300,000tpa operation in Pori, Finland with potential JV partner with Critical Metals, underpinned by a 2Mt, 10-year Slag supply agreement (together with potential for a further 1.1Mt) with leading Scandinavian steelmaker SSAB. JV investment decision expected Dec 2022. MOU with H2Green Steel a potential second operation in Boden, Sweden to process up to 4Mt of Slag ; and
- Lithium Chemicals (earning 35% equity)– to produce battery quality lithium hydroxide from brine feedstocks using RAM’s patented ELi® electrolysis process. Co-funding pilot/demonstration plants and evaluation studies on a 25,000tpa operation in Europe in a 50:50 JV between RAM (70% NMT, 30% Mineral Resources Ltd) and Portugal’s largest chemical producer Bondalti Chemicals S.A. Investment decision expected Dec 2023.
Figure 1 – Location map of Neometals’ Projects together with partner developments
CORE BATTERY MATERIALS BUSINESS UNITS
Lithium Battery Recycling Project
Neometals 50% via Primobius GmbH, a 50:50 incorporated JV with SMS group GmbH
(NMT 100% Intellectual Property ownership, SMS earning 50%)
Primobius GmbH (“Primobius”) is the 50:50 incorporated joint venture established in 20202 to co-fund the commercialisation of the LIB Recycling Technology originally developed by Neometals.
The process recovers materials contained in LIB production scrap and end-of-life cells that might otherwise be disposed of in land fill. Current LIB recycling processes predominantly rely on high carbon emission pyrometallurgy processes. Primobius’ two stage process (“LIB Recycling Technology”) recovers nickel, cobalt, lithium and manganese battery materials (and physically recovered metals and plastics) into saleable products that can be reused in the LIB supply chain. The LIB Recycling Technology prioritises maximum safety, environmental sustainability and product recoveries, to support the circular economy and decarbonisation.
The LIB Recycling Technology, comprises of two stages:
- “Spoke” - LIB receipting, sorting, discharging, disassembly together with shredding and beneficiation to physically separate all of the components of LIBs received, by metal casings, electrode foils, plastics and active materials; and
- “Hub” - Leaching, purification and crystallisation of the active materials suitable for use in production of LIB precursor, via a hydrometallurgical refining process.
A pilot trial (“Pilot”) at SGS Lakefield, Canada in 2019/20 successfully produced cathode-grade nickel and cobalt sulphate products which collectively represent approximately 80% of the value of the basket of products recovered. The Spoke section of the Demonstration Plant in Hilchenbach, Germany was upgraded to provide a commercial disposal service to the German OEMs in April 2022. Production is currently being ramped up to its maximum licence capacity of 10tpd of LIBs. Data generated during ongoing Demonstration Hub trials is being used internally for engineering and design purposes. Underpinning commercial plant supply offers and agreements where Primobius acts as principal, JV partner or technology licensor.
Figure 2 - High level flowsheet showing the movement of materials from Shredding and Beneficiation through to Refining stages for the LIB Recycling Technology
Activity Summary
During the quarter, Primobius further progressed technical, evaluation and commercial work across the business unit. The quarter also marked the commencement of revenue generation from LIB disposal (recycling) operations at Hilchenbach, Germany.
Significant activities comprised:
- Appointment of experienced executive, Merrill Gray, as dedicated Neometals ‘Head of Recycling’;
- Continued recruitment activities to expand the Primobius operational and management teams in line with commercial requirements;
- Continued ramp-up of the commercial 10tpd shredding and beneficiation plant in Hilchenbach, Germany (“Hilchenbach Spoke”);
- Primobius revenue generation via Hilchenbach Spoke disposal fees and Black Mass product sales as well as plant design and engineering activities for customers;
- Co-operation agreement with Mercedes-Benz recycling subsidiary LICULAR GmbH (“LICULAR”) legally binding following execution of purchase order for front-end engineering of proposed 10tpd LIB Spoke and integrated Hub in Kuppenheim, Germany (together “LICULAR 10tpd Plant”);
- Advancing studies with Stelco to underpin the provision of plant supply agreement for Primobius’ first 50tpd (~20,000tpa) Spoke (“Stelco 50tpd Spoke”) and consideration of co-investment;
- Completion of Engineering Cost Study for a 50tpd Spoke (“Spoke ECS”) of a potential greenfields integrated LIB recycling operation in an existing industrial park in Germany;
- Equivalent Engineering Cost Study (“Hub ECS”) for a refining Hub progressing well; and
- Ongoing business development activities in relation to commercial partner pipeline opportunities.
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Authorised on behalf of Neometals by Christopher Reed, Managing Director.
ENDS
For further information, please contact:
Chris Reed
Managing Director
Neometals Ltd
T: +61 8 9322 1182
Jeremy Mcmanus
General Manager - Commercial and IR
Neometals Ltd
T: +61 8 9322 1182
Compliance Statement
The information in this report that relates to Mineral Resource Estimates for the Barrambie Vanadium/Titanium Project is extracted from the ASX Announcement listed below, which is also available on the Company’s website at www.neometals.com.au.
[i] Association for the Advancement of Cost Engineering (AACE®)
