REG - Gelion PLC - Grant Funding and Accelerator Programme

GelionAnnouncement

18/09/2024 07:30

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RNS Number : 6636E  Gelion PLC  18 September 2024

18 September 2024

Gelion plc

("Gelion", "Company" or the "Group")

Grant Funding and Accelerator Programme for Battery Recycling

Gelion (AIM: GELN), the Anglo-Australian battery innovator, announces the
incorporation of a wholly owned subsidiary, Battery Minerals Ltd ("Battery
Minerals"), in the UK, to develop and then commercialise the Lithium-Ion
("Li-Ion") recycling technology acquired from Johnson Matthey in 2023. Battery
Minerals has also been awarded a grant of up to £170,000 by the UK
government's Department of Business and Trade (DBT) and facilitated by the
Advanced Propulsion Centre UK (APC) as part of the Technology Developer
Accelerator Programme (TDAP).

 

The objective of Battery Minerals is to develop a novel recycling process
designed to provide lower cost, lower waste, lower eCO(2) and provide the
ability to efficiently extract lithium from more battery scrap sources. The
growing volume of battery waste presents an environmental challenge, an
economic opportunity (projected to be worth $30-40 billion globally by
2030 1 ) and a strategic opportunity (self-sufficient minerals supply).

 

The grant will be used to support a market-focused study and technology
development programme to identify the most efficient route to
commercialisation of the Battery Recycling IP. TDAP will also provide
significant commercial support to Battery Minerals within the UK battery
ecosystem through connection with potential customers, investors, and supply
chain partners.

Gelion will also allocate funding of c. £100k during the accelerator
programme while the intrinsic value of the Battery Minerals entity and
business continues to be developed and clarified with the support of the
accelerator process to assess value and monetisation strategy.

 

The programme will be delivered in 2 phases:

 

Phase 1: Market Focus (June 24 - Jan 25) & Phase 2: Technology Validation
(Feb 25 - Nov 25)

 

·  Activities: Phase 1 would include development of an in-depth
techno-economic analysis, go-to-market strategy, and product strategy with the
support of industry partners. Phase 2 activities would include research and
development to increase the technology readiness level (TRL) of the recycling
process and potentially support a feasibility study for a larger scale pilot
plant.

·    Funding: Up to £170,000 including £20,000 of in-kind funding from
the programme delivery partners.

Participants in TDAP have reported an "average acceleration of 19 months to
market entry 2 " with over £250 million in private capital raised since the
programme's inception in 2014.

Gelion CEO John Wood said: "We are delighted to establish Battery Minerals in
the UK and are very grateful to the APC for its grant support which provides
an ideal approach to advance the commercial and technology planning for our
Lithium-Ion recycling technology suite, building a path to an independent
investment case and value for our shareholders. The IP suite includes an
overarching patent application for the end-to-end process and individual
patent applications for each process step. Collectively the 10 patent families
offer an efficient and effective method to recover Lithium and other component
minerals from scrapped Lithium-Ion cells. This exercise aims to identify the
most efficient pathway toward commercial value of the Recycling IP portfolio."

Further information

 

In May 2023, Gelion provided an update on its strategic progress on developing
value from the IP portfolio acquired from Johnson Matthey, primarily to
support the Group's Lithium-Sulfur development. This update also highlighted
additional potential for commercialisation opportunities in the area of
battery recycling (Battery Recycling IP).

 

After further assessment, Gelion has decided to develop the Battery Recycling
IP in a purpose-oriented entity aimed at realising value for the Company's
shareholders. To facilitate this, Gelion has incorporated a wholly owned
subsidiary, Battery Minerals Ltd.

 

Battery Minerals aims to increase the recycling of lithium-ion and sodium-ion
battery waste, contributing to the creation of a circular economy for battery
metals such as lithium, nickel and cobalt.

 

Many current battery recycling processes use crude chemistry meaning they are
highly capital intensive, generate large quantities of solid waste, and are
inefficient at recovering available value (e.g. limited lithium recovery).
This means long investment payback timelines and difficulty in establishing
processes in high regulation environments like Europe and Australia.

 

Battery Minerals' innovative chemical processes aim to:

 

1.            Recover more metals (including lithium), to increase
the revenue per/kg of waste inputs.

2.            Reduce upfront costs and increase equipment lifetime
by utilising less harsh chemicals.

3.            Reduce solid waste generation and subsequent eCO(2)
by using novel extraction methods.

4.            Increase product purity using novel impurity removal
methods.

 

The Battery Recycling IP portfolio can operate either as a standalone process
or integrate with existing recycling operations delivering cost and
performance benefits thereby offering flexibility in our commercialisation
strategy. Gelion is currently exploring collaboration in battery recycling
with partners.

 

The technology was previously implemented at lab-scale by Johnson Matthey, and
Battery Minerals is aiming to develop the technology following reinstatement
of the laboratory testing and completion of a feasibility study, with customer
trials to assess value and monetisation strategy.

CONTACTS

 Gelion plc                                                    via Alma

 John Wood, CEO

 Amit Gupta, CFO

 Thomas Maschmeyer, Founder and Principal Technology Advisor

 Cavendish Capital Markets Limited                             +44 207 220 0500

 (Nominated Adviser and Broker)
 Corporate Finance

 Neil McDonald; Seamus Fricker; Fergus Sullivan

 Sales

 Leif Powis

 Alma Strategic Communications (Financial PR Adviser)          +44 20 3405 0205

 Justine James; Hannah Campbell; Will Ellis Hancock            gelion@almastrategic.com

 

About Gelion

Gelion ("gel: ion") is a global energy storage innovator, supporting the
transition to a more sustainable economy by commercialising two globally
important next generation technologies: Lithium-Sulfur (Li-S) and Zinc-based
(Zn) hybrid cells to electrify mobile and stationary applications. Gelion plc
(the Group) is listed on the London Stock Exchange's AIM market and wholly
owns Australia based Gelion Technologies Pty Ltd. Gelion is designing and
delivering innovative battery technology to enable that transition and return
value for its customers and investors.

Lithium Sulfur

Gelion's effort is directed at the potential for the Li-S chemistry to deliver
double the gravimetric energy density of standard Lithium-ion chemistries
whilst concurrently reducing cost and increasing safety, targeting the EV and
e-aviation market, helping to make global transport, energy consumption and
storage more sustainable.

Gelion is developing a GEN 3 Lithium Sulfur cell product for its high energy
density sulfur cathode at its expanded R&D facilities in Australia and UK,
enabling it to integrate with a variety of anodes ranging from graphite to
silicon to lithium metal, depending on the targeted application.

Gelion's GEN 3 cell is unlocking the potential of sulfur batteries for a wide
range of global mobile applications including electrical
vertical-take-off-and-landing (eVTOL), drone markets, electric vehicles (EVs)
and stationary energy storage (ESS).

Background on Gelion's GEN 3 Lithium Sulfur

·     High energy density - Energy density greater than 400 Wh/kg, when
using a 10+ Ah pouch cell.

·     Semi-solid-state as a route to increased longevity/cycle life: GEN
3 employs a semi-solid-state mechanism, maintaining the sulfur-based cathode
materials in the cathode, preventing their diffusion into the electrolyte and
diminishing associated battery degradation caused by reactive polysulfides.
This approach mitigates the major degradation factor associated with
conventional Li-S technology.

·     Increased sulfur utilisation: GEN 3 demonstrates the full
theoretical capacity of sulfur, i.e. a much higher sulfur utilisation than
found in conventional Li-S approaches.

·     Simplified supply chain: The innovative cathode is produced by
mixing commercially available materials with abundant sulfur using a
low-energy, room-temperature process, with potential to eliminate the need for
pre-fabrication of the sulfur composite (sulfur composite is related to
cathode active material in conventional lithium-ion batteries), streamlining
the associated supply chain and production process and enabling localised
manufacturing.

·     Environmental and economic benefits: The water-based,
standard-atmosphere cathode production process eliminates the need for toxic
solvents, leading to significant cost savings and enhanced manufacturability.

GEN 3 uses the extensive network of Li-S technologies developed within Gelion
and contained in the patents acquired from Johnson Matthey in March 2023.

Zinc

Gelion is adapting its zinc technology to comprise an alternate cathode
technology, a zinc hybrid cell to develop complementary next-generation
batteries for the lead-acid eco-system. Early testing indicates that this
solution has the potential to maintain good energy density levels with
enhanced cost and safety aspects. Once fully developed, Gelion intends for its
zinc technology to provide a durable and sustainable market extension within
the ecosystem that supports lead-acid batteries.

Recycling

Gelion is developing an innovative battery recycling technology designed to
enhance and supplement current recycling methods. Our technology aims to
reduce the initial costs of recycling plant processes, minimise waste, and
lower carbon emissions, while improving the purity of metal products and
enabling efficient lithium extraction. This advancement will allow for a
broader range of scrap materials to be recycled. Currently in the feasibility
stage, Gelion is committed to advancing our technology to a pilot-scale
demonstration, paving the way for commercialisation through material
production and IP licensing.

About the Advanced Propulsion Centre UK

The Advanced Propulsion Centre UK (APC) collaborates with UK government, the
automotive industry and academia to accelerate the industrialisation of
technologies, supporting the transition to a net zero automotive supply chain
in the UK.

Since its foundation in 2013, APC, with the backing of the UK Government's
Department for Business and Trade (DBT), has funded 264 low-carbon and zero
emission projects involving 492 partners, working with companies of all sizes,
and will have helped to create or safeguard over 58,000 jobs in the UK. The
technologies developed in these projects are projected to save over 410
million tonnes of CO2.

With its deep sector expertise and cutting-edge knowledge of new propulsion
technologies, APC's role in building and advising project consortia helps
projects start more quickly and deliver increased value. In the longer term,
its work to drive innovation and encourage collaboration is building the
foundations for a successful and sustainable UK automotive industry.

In 2020 UK Government established the Automotive Transformation Fund (ATF) to
accelerate the development of a net-zero vehicle supply chain, enabling
UK-based manufacturers to serve global markets. ATF investments are accessed
through the APC and awarded by DBT to support strategically important UK
capital and R&D investments that will enable companies involved in
batteries, motors and drives, power electronics, fuel cells, and associated
supply chains to anchor their future.

For more information go to www.apcuk.co.uk (http://www.apcuk.co.uk) or follow
us @theapcuk on X and Advanced Propulsion Centre UK on LinkedIn.

 1 
https://www.statista.com/statistics/1103263/li-ion-battery-recycling-market-size/

 2  https://www.apcuk.co.uk/get-involved/competitions/tdap-wave-8/
(https://www.apcuk.co.uk/get-involved/competitions/tdap-wave-8/)

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