REG - Neometals Ltd - Positive Results from ELi™ Pilot Trial

NeometalsAnnouncement

12/11/2024 07:00

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RNS Number : 8649L  Neometals Ltd  12 November 2024

The information communicated within this announcement is deemed to constitute
inside information as stipulated under the Market Abuse Regulations (EU) No.
596/2014 which is part of UK law by virtue of the European Union (withdrawal)
Act 2018. Upon the publication of this announcement, this inside information
is now considered to be in the public domain.

 

 

12 November 2024

Neometals Ltd

("Neometals" or "the Company")

Positive Results from ELi™ Pilot Trial

Highlights:

·      ELi(TM) has achieved the objectives of the pilot stage of its
electrolysis technology readiness;

·      The crystallisation trial produced high purity lithium hydroxide
monohydrate crystals and will produce further samples for market evaluation;

·      The electrolysis trial data supports the expected power
consumption and membrane life assumptions, and hydrodynamic testing confirmed
the equipment can be applied to commercial-scale operation;

·      The final stages of the Pilot trial involved a 1,000-hour
electrolysis test of a lithium chloride solution (South American brine
source), purified with ELi™ technology and crystallisation of the lithium
hydroxide product;

·      The ELi™ Process potentially delivers users a step-change
reduction in operating costs to convert lithium chloride brines to lithium
hydroxide (or carbonate) with electrolysis, virtually eliminating bulk
reagents.

Sustainable process technology developer, Neometals Ltd (ASX: NMT & AIM:
NMT) ("Neometals" or "the Company"), is pleased to announce the results of the
final electrolysis and crystallisation stages of the ELi™ Process ("ELi™")
Pilot trial ("Trial"). ELi™ is owned by Reed Advanced Materials Pty Ltd
("RAM"), a 70:30 incorporated joint venture between Neometals Ltd and Mineral
Resources Ltd.

The technology uses electricity to convert lithium chloride solutions into
lithium hydroxide in a conventional chlor-alkali cell, replacing the need for
large volumes of bulk chemical reagents required in the industry-standard,
chemical precipitation process. ELi™ has the potential to deliver users a
step-change in operating costs(( 1  (#_ftn1) )) versus industry standard
chemical precipitation.

RAM completed a long-duration 1,000-hour electrolysis membrane durability test
utilising a lithium chloride solution produced in the successful 2023
'purification' trial on brine sourced from South America(( 2  (#_ftn2) )). The
Trial tested the performance of the electrolysis cell membrane over a duration
five times longer than historic tests and the results support current
estimates of two major variable operating costs (power consumption and
membrane life) and successfully produced lithium hydroxide monohydrate ("LHM")
of very high purity.

Table 1 - LHM Sample Analysis

 Element(( 3  (#_ftn3) ))  LiOH %    CO(3)(2-)%  Na ppm  Ca ppm  K ppm  Fe ppm  SO(4) ppm
 Target Spec               >56.5     <0.4        20      10      10     10      100
 Sample 1                  56.6      ND          1.8     6.0     5.6    8.2     2.4
 Sample 2                  56.9      ND          3.6     9.7     5.1    8.6     1.5

Additionally, further samples are being produced for qualitative evaluation.

These results are significant as they confirm or exceed historic results
achieved from processing synthetic brine solutions (from commercial lithium
chloride crystals) at continuous laboratory scale on less-pure eluate from
natural brine, at a pilot scale and over a longer duration. The increased
confidence in major operating cost inputs supports the potential operating
cost advantage of the ELi™ process in the conversion of lithium chloride
brines and is a major milestone in the commercialisation of the technology
under a low-capex, low-risk technology licensing business model to generate
future royalty income. RAM holds 19 granted patents in the principal lithium
producing jurisdictions and has a further 14 pending national phase patents at
various stages of prosecution globally.

Figure 1 - Schematic comparison flowsheet of the conventional lithium
hydroxide from brines vs the patented ELi™ process.

ELi™ Electrolysis Pilot Trial Results

The current efficiency for the Trial averaged approximately 74% and trended
upwards during the course of testing, consistent with historical electrolysis
results on synthetic brine solutions. The current efficiency measures the
actual catholyte produced as a percentage of the maximum possible production
and, pleasingly, the results support the electricity consumption assumption in
the 2023 Engineering Cost Study(( 4  (#_ftn4) )).

The Trial membrane was physically inspected and chemically analysed following
completion of testing, to determine the extent of any deterioration which may
have arisen during the tests. The membrane was observed to be in excellent
condition and no significant build-up of elements was identified in the
membrane destructive digestion test. A shorter 40-hour duration test examined
the hydrodynamic performance and polarisation characteristics of a full-height
commercial electrolysis cell. This test successfully confirmed the flowsheet
can be applied to commercial-scale electrolysis cells. This outcome gives
confidence this is an effective means of producing a suitable solution for
production of battery grade lithium hydroxide monohydrate ("LHM").

The lithium hydroxide catholyte from electrolysis was processed in the
crystallisation trial to produce LHM final product. Sample splits of the
product were sent for analysis in separate laboratories, in South Africa and
Australia. The Australian analytical laboratory is considered to have greater
reliability in determinations of very low concentration impurities (in low ppm
and in ppb-level concentration of impurity elements), so the Australian
laboratory results for impurities are reported. Some carbonation of the sample
sent to the Australian laboratory was observed in the analysis, but this has
been traced to the sample not having been packed in an inert atmosphere and
aging in transit to Australia. Lithium hydroxide readily carbonates by
absorbing the carbon dioxide in air but contact with air does not change the
content of other impurities. The sample sent to the South African laboratory
was not exposed to ambient carbon dioxide and analysis did not detect any
carbonation in the sample. The South African laboratory lithium hydroxide and
carbonate results are considered reliable and are reported.

The combined analysis results meet the target specifications listed in Table
1. Sample product is being produced for further evaluation by both RAM and the
owner of the South American brine source.

Forward Plan

ELi(TM) has satisfied the objectives of the pilot stage of its electrolysis
technology readiness. RAM has prepared an information memorandum and data room
to commence a formal industrial partner selection process, with the aim of
advancing the technology through industrial validation, in demonstration plant
trials.

RAM continues to evaluate third-party brine samples and to advance discussions
with chlor-alkali plant manufacturers in relation to preferred vendor
relationships.

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
 Chris Kelsall, CFO & Company Secretary                        +61 8 9322 1182

 Cavendish Capital Markets Ltd - NOMAD & 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 facilitates sustainable critical material supply chains and reduces
the environmental burden of traditional mining in the global transition to a
circular economy.

The Company is commercialising a portfolio of sustainable processing solutions
that recycle and recover critical materials from high-value waste streams.

·      Neometals' core focus is its patented, Lithium-ion Battery
("LiB") Recycling technology (50% NMT), being commercialised in a 50:50
incorporated JV (Primobius GmbH) with 150-year-old German plant builder, SMS
group GmbH. Primobius is supplying Mercedes-Benz a 2,500tpa recycling plant
and operates its own LiB Disposal Service in Germany. Primobius' first
21,000tpa commercial plant will be offered to Stelco under an existing
technology licence for North America.

Neometals is developing two advanced battery materials technologies for
commercialisation under low-risk, low-capex technology licensing business
models:

·      Lithium Chemicals (70% NMT) - 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. Successfully completed pilot scale test work and planning
further development with industrialisation partners under a technology
licensing business model; and

 

·      Vanadium Recovery (100% NMT) - Patent pending hydrometallurgical
process to produce high-purity vanadium pentoxide from steelmaking by-product
("Slag") at lowest-quartile operating cost and carbon footprint. Planning to
exploit under a technology licensing business model. Project financing process
for first commercial plant in progress.

 

For further information, visit: www.neometals.com.au
(https://www.neometals.com.au/) .

 1  (#_ftnref1) For full details refer to Neometals ASX announcement dated
26(th) April 2023 and titled "Lithium - Exceptional Engineering Cost Study
Results"

 2  (#_ftnref2) For full details refer to Neometals ASX announcement dated
10(th) November 2023 and titled "Successful ELi(TM) Purification Pilot Trial"

 3  (#_ftnref3) LiOH and CO(3)(2-) analysis reported by a South African
laboratory and the other elements reported by an Australian laboratory

 4  (#_ftnref4) For full details refer to Neometals ASX announcement dated
26(th) April 2023 and titled "Lithium - Exceptional Engineering Cost Study
Results"

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