Neometals charges up EV battery recycling test

Battery metals producer Neometals has put pen to paper to bring global engineering firm and joint venture partner SMS Group onboard with a 50 per cent stake in its battery recycling IP to accelerate commercialisation of its lithium-ion battery recycling technology.

The 50-50 joint venture between Neometals and SMS Group has also granted Primobius an exclusive commercial licence after proving its wares at a German demonstration plant where the company inked a deal with a Mercedes-Benz subsidiary.

The deal between the Neometals JV and Primobius has been in the works since 2020 when Primobius was formed to build a lithium-ion battery recycling plant and was handed a licence to evaluate Neometals’ recycling IP for use at the facility.

With the new licence secured Primobius will this month turn its attention to firing up a dedicated end-to-end battery recycling trial for its customers.

Costs will also be nutted out for a commercial hydrometallurgical refinery, with the study pencilled in for completion mid-2023.

Neometals Managing Director Chris Reed said:“The formalisation of the technology ownership with SMS and issue of the full commercial licence completes the partners original commitments in the evaluation phase of the Primobius JV.”

“It heralds the partners full alignment and commitment to accelerate the company’s transition to become a leading, independent provider of lithium-ion battery recycling solutions to the global EV supply chain.“

“Neometals is committing more staff to Primobius’ operations and management in Germany to support Primobius’ transition into an autonomous global recycling business.”

The imminent trial will test refining processes using cells from discharged and disassembled customer EV modules shredded at the Hilchenbach plant in Germany.

Neometals says its recycling IP provides for sustainable recovery of lithium, nickel, cobalt and other metals from scrapped electric vehicles and consumer electronics.

Once shredded, the valuable base materials will be turned into products such as battery grade sulphates.

Should the technology be proven, it could be a boon for green industries dogged for years by concerns over a perceived lack of recyclability.

With EV laggard Australia slowly waking to the benefits of ditching the combustion engine recycling is front-of-mind for the industry.

The Battery Stewardship Council predicts as much as 186,000 tonnes of lithium-ion batteries will be thrown out in Australia by 2036.

Some 5290t of lithium-ion batteries reached end-of-life in 2017-18 and according to the council a mere 320t were recycled.

That compares to a 50 per cent collection rate in Europe.

The CSIRO in 2021 found there was a $3.1bn industry to be made in Australia by recycling lithium-ion batteries as the uptake of EVs grew.

Neometals’ technology has shown early promise and sparked interest among key global players.

Should testing go as planned and uptake of EVs in Australia boom, the company will have the knowhow at the ready to bring the fruits of its German recycling trials closer to home.

Is your ASX-listed company doing something interesting? Contact: matt.birney@businessnews.com.au