REG - Neometals Ltd - Lithium Chemicals Update

NeometalsAnnouncement

21/03/2024 07:00

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RNS Number : 7574H  Neometals Ltd  21 March 2024

21 March 2024

Neometals Ltd

("Neometals" or "the Company")

Lithium Chemicals Update

Highlights:

·      Reed Advanced Materials (Neometals 70%, Mineral Resources 30%)
and Lifthium Energy have ceased discussions in relation to updated
arrangements for the evaluation of a lithium refinery in Portugal; and

·      Reed Advanced Materials will sole fund the final stage of the
pilot test work program for its patented ELi™ process and will pursue a
low-capital, low-risk technology licensing business model.

Sustainable process technology developer, Neometals Ltd (ASX: NMT & AIM:
NMT) ("Neometals" or "the Company") advises that its joint venture company,
Reed Advanced Materials Pty Ltd ("RAM") (70% NMT, 30% Mineral Resources Ltd)
has ceased discussions with Lifthium Energy SA ("Lifthium") in relation to
updated arrangements for the further evaluation of a lithium refinery to
produce lithium chemicals in Estarreja, Portugal. RAM will proceed to complete
the final stage of pilot test work and intends to commercialise its
proprietary ELi™ process which comprises an extensive patented technology
package through a licensing business model.

RAM has been co-funding evaluation activities with Bondalti Chemicals SA
("Bondalti") and negotiating a new co-operation framework with Bondalti's
sister company, Lifthium.(( i  (#_edn1) )) RAM and Bondalti completed an
Engineering Cost Study ("ECS") to AACE Class 3 standard for a 25,000tpa
lithium hydroxide monohydrate merchant refinery in Portugal and have been
advancing a phased pilot scale test work program in Canada ("Pilot").

The ECS confirmed the technical feasibility of the process to purify and
convert lithium chloride to lithium hydroxide with potential lowest-quartile
operating costs and capital cost intensity. Additionally, the first stage of
the Pilot successfully purified lithium chloride from an existing South
American operation to the specification required for conversion by
electrolysis using ELi™(( ii  (#_edn2) )). Despite the compelling operating
/ capital cost metrics and successful purification Pilot activities, RAM and
Lifthium have been unable to agree terms for further joint evaluation
activities and licensing arrangements.

RAM is fully funded to complete the final stage of Pilot test work and will
continue to test third-party brines for potential partners under a low-capex,
low-risk technology licensing business model to generate future royalty
income.

Neometals Managing Director Chris Reed said:

"Neometals appreciates the collaboration with Bondalti in advancing the
commercialisation of our ELi™ process. We are committed to the
commercialisation of ELi™ which we see as the future of sustainable low-cost
lithium production from brines to meet the demands of the transport
electrification and energy storage thematic. In light of the current price
cycle, we will pivot towards a more conservative business model for
commercialisation."

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
 Jeremy McManus, General Manager - IP & IR                     +61 8 9322 1182

 Cavendish Capital Markets Ltd - NOMAD & Joint 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 is commercialising a portfolio of sustainable processing solutions
that recycle and recover critical materials from high value waste streams. The
Company collaborates with partners and customers to facilitate circular supply
chains and reduce the environmental burden of traditional mining in the global
transition to a sustainable economy. Neometals' 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, fully integrated, 21,000tpa plant offer
to Canadian company Stelco in the JunQ 2025;

·      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. Pilot scale test work and Engineering Cost
Study update in progress. Commercialisation strategy is through technology
licensing model; and

·      Vanadium Recovery (100% technology) - aiming to enable
sustainable production of 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/)

 

 i  (#_ednref1) For full details refer to Neometals ASX announcement titled
"Lithium Chemicals Co-operation Update" dated 3 October 2023.

 ii  (#_ednref2) For full details refer to Neometals ASX announcements titled
"Portugal Lithium Refinery Study Confirms Step-change Opex of ELi™
Technology" dated 26 April 2023 and "Successful Eli Purification Pilot Trial"
dated 10 November 2023.

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