REG - Neometals Ltd - Successful ELi Purification Pilot Trial

NeometalsAnnouncement

10/11/2023 07:00

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RNS Number : 0142T  Neometals Ltd  10 November 2023

This announcement contains inside information

 

10 November 2023

 

Neometals Ltd

("Neometals" or "the Company")

 

Successful ELi Purification Pilot Trial

 

Highlights:

·      Neometals 70% owned lithium chemical processing technology
("ELi™") purifies lithium chloride to specification required for
electrolysis trial to commence;

·      Pilot trials are being co-funded by Bondalti group, whilst a new
co-operation agreement is being negotiated to cover proposed Demonstration
Plant in Portugal.

·      ELi™ has several advantages over conventional processes
including lower operating expenditures by substituting electricity for
chemical reagents, higher product purity and a smaller CO(2) footprint.

 

Innovative battery materials recycler, Neometals Ltd (ASX: NMT & AIM: NMT)
("Neometals" or "the Company"), is pleased to announce successful completion
of the purification phase ("Purification Testwork") of its Lithium Chemical
pilot trial ("Pilot"). The Purification Testwork, conducted on a brine feed
source, has confirmed earlier bench-scale testing by removing >97% of brine
feed source impurities. This supports production of a purified brine solution
that sits comfortably within specification for subsequent electrolysis stage
of the Company's majority owned ELi™ process ("ELi™ Technology").

Neometals' Lithium Chemical business unit is commercialising the ELi™
Technology owned by Reed Advanced Materials Pty Ltd ("RAM") (70% NMT, 30%
Mineral Resources Ltd (ASX:MIN)).  RAM is co-funding the Pilot with Bondalti
group, Portugal's largest chlor-alkali chemical producer and held by José de
Mello Group, one of Portugal's largest corporate groups.

The ELi™ process comprises brine purification, followed by electrolysis
where electricity is used to convert lithium chloride solutions into lithium
hydroxide and/or lithium carbonate. The purification Pilot, undertaken by a
third party laboratory, processed an actual South American salar brine
concentrate.

The pilot has confirmed earlier bench-scale testing and successfully removed
from the brine the impurities that are impediments to optimum electrolysis
performance. Brine analysis "before" (unpurified brine feed) and "after"
(purified brine) is summarised as follows:

Table 1 - Assay Results before and after Purification

 (mg/L)       Li      Ca         Mg         B          Sr         Si
 Before       62,654  6,260      15,792     7,141      71         52
 After (ave)  45,100  <0.9       <0.09      <0.4       <0.002     1
 % removed*   n/a     >99.98     >99.99     >99.99     >99.99     >97

*Using the assay detection limit for calculation of recovery

ELi™ has several advantages over conventional processes including lower
operating expenditures by substituting electricity for chemical reagents,
higher product purity and a smaller CO(2) footprint. The Purification
Testwork successfully removed impurities that can impede electrolysis
efficiency (consumption). Higher and stable electrical current efficiency in
turn extends electrolysis membrane durability (useful life), reducing
maintenance time and cost and increasing the end-product grade.

Figure 1: Schematic showing a comparison of the conventional flowsheet for

the production of lithium hydroxide from brines with the Eli™ process

Next steps

The schedule for next stage activities is as follows:

 Activity                             Location   Completion
 Purified brine delivery              Vancouver  Q4 23
 Brine and test preparation           Buffalo    Q4 23
 Split sample for electrolysis pilot  Buffalo    Q4 23
 Full-scale test                      Vancouver  Q4 23
 Long-term electrolysis pilot         Buffalo    Q1 24
 Lithium hydroxide crystallisation    Buffalo    Q1 24

 

Background - Lithium Refinery("LR") Project

With the original planned pilot activities nearing conclusion and Bondalti's
parent incorporating a dedicated lithium subsidiary, Lifthium Energy S.A., RAM
and Bondalti Group are continuing to co-fund the agreed pilot plant activities
while a new cooperation agreement is being negotiated in parallel 1 . The
evaluation activities completion of an engineering cost study ("LR ECS") and
pilot-scale metallurgical test-work ("Pilot Trials").

Table 2: Key LR ECS Metrics*

                                         ECS Metrics (100% ownership basis)
 Annual Production                       25,000tpa LHM
 Annual Throughput                       80,000 tpa Brine @ 6% Li
 Average Operating Cost (±15%)**         €1,768/t (US$1,945/t) LHM
 Total initial capital costs (±15%)***   €405M (US$446 M)
 Capital Intensity****                   €16,200/t (US$17,840/t) LHM capacity

 

 * (for full details refer to Neometals ASX announcement headlined 'Portugal
 Lithium Refinery Study Confirms Step-change Opex of ELi(TM) Technology"
 released on 26(th) April 2023).

 ** from receipt of 6% Li brine concentrate to packaged high purity "battery
 grade" lithium hydroxide product, excluding by-product credits

 *** Total of direct and indirect capex including 15% contingency, EPC fees and
 design post-Class 3

 **** Based on total capex and 25,000tpa LHM capacity

 

 

 

Figure 2: Engineering Cost Study Opex comparison showing significantly reduced
operating costs to generate LHM when compared to conventional Brine and
spodumene routes (noting that conventional Brine processing is a two-stage
process with lithium carbonate ("LC") produced before additional processing
into LHM.

 

Authorised on behalf of Neometals by Christopher Reed, Managing Director.

 

For more information, please contact:

 

 Neometals Ltd
 Chris Reed, Managing Director & Chief Executive Officer       +61 8 9322 1182
 Jeremy McManus, General Manager - IP & IR                     +61 8 9322 1182

 Cavendish Securities plc - NOMAD & Joint Broker
 Neil McDonald                                                +44 (0)131 220 9771
 Peter Lynch                                                  +44 (0)131 220 9772
 Adam Rae                                                     +44 (0)131 220 9778

 RBC Capital Markets - Joint Broker                           +44 (0) 20 7653 4000
 Paul Betts
 Jamil Miah

 Camarco PR                                                   + 44(0) 20 3 757 4980
 Gordon Poole
 Emily Hall
 Lily Pettifar

 

About Neometals

Neometals has developed and is commercialising three environmentally-friendly
processing technologies that produce critical and strategic battery materials
at lowest quartile costs with minimal carbon footprint.

Through strong industry partnerships, Neometals is demonstrating the economic
and environmental benefits of sustainably producing lithium, nickel, cobalt
and vanadium from lithium-ion battery recycling and steel waste recovery. This
reduces the reliance on traditional mine-based supply chains and creating more
resilient, circular supply to support the energy transition.

The Company's three core business units are exploiting the technologies under
principal, joint venture and licensing business models:

 

·    Lithium-ion Battery ("LiB") Recycling (50% technology) -
Commercialisation via Primobius GmbH JV (NMT 50% equity). All plants built by
Primobius' co-owner (SMS group 50% equity), a 150-year-old German plant
builder. Providing recycling service as principal in Germany and commenced
plant supply and licensing activities as technology partner to Mercedes-Benz.
Primobius targeting first commercial 21,000 tpa plant offer to Canadian
company Stelco in the DecQ 2023;

·    Lithium Chemicals (70% technology) - Commercialising 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. Co-funding Pilot Plant trials in 2023 with
planned Demonstration Plant trials and evaluation studies in 2024 for
potential 25,000tpa LiOH operation in Portugal under a 50:50 JV with related
entity to Bondalti, Portugal's largest chemical company; and

·   Vanadium Recovery (100% technology) - aiming to produce high-purity
vanadium pentoxide from processing of steelmaking by-product ("Slag") at
lowest-quartile operating cost. Targeting partnerships with steel makers and
participants in the vanadium chemical value chain under a low risk / low capex
technology licensing business model.

 

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

 

 

(#_ftnref1) 1 (for full details refer to Neometals ASX announcement headlined
"Lithium Chemicals Co-operation Update" released on 3(rd) October 2023).

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