Neometals teams up with Mercedes for battery recycling
ASX-listed Neometals has joined forces with a subsidiary of luxury vehicle juggernaut Mercedes-Benz to design and construct a proposed lithium-ion battery recycling facility in Southern Germany. The collaboration will see Primobius, a joint venture partner of Neometals, team up with the car manufacturer’s subsidiary, LICULAR GmbH. According to the company, the pair are in ‘advanced discussions’ for the 2,500 tonne per annum plant.
The announcement follows the negotiation of an informal non-binding memorandum of understanding, or “MoU” between Primobius and LICULAR and Neometals says it expects a formal agreement between the two to be wrapped up in due course.
Perth-based Neometals and German plant maker SMS Group formed Primobius about two years ago to develop and commercialise an environmentally sustainable battery recycling method for used lithium-ion batteries.
The move appears to be paying dividends now after prestige car company Mercedes-Benz anointed Primobius as its favoured technology partner for the design and construction of the proposed battery and waste disposal recycling plant at Mercedes’ Kuppenheim Operations base in southern Germany.
According to Neometals, the partnership marks the automakers first foray into the lucrative lithium-ion battery recycling space.
The company says it anticipates the recycling plant will chew through around 10 tonnes per day or 2,500 tonnes of battery product per annum.
The plant is set to be constructed in two stages and is earmarked to commence operations next year.
Neometals Managing Director and CEO Chris Reed said:“Lithium battery recycling supports conservation of resources, decarbonisation and supply chain resilience and we are excited to assist Mercedes in its goal to re-use recovered materials for the manufacture of new cells for Mercedes-EQ vehicle models.”
Neometals looks to be building a presence in the battery recycling space across a host of locations after Primobius also signed an agreement to commercialise its recycling technology with Canadian steelmaker Stelco Holdings in December 2021. The company said at the time the region boasted the fastest growing market for lithium battery manufacturing.
According to Deloitte, the electric vehicle sector is expected to swell at an annual compound growth rate of around 29 per cent over the next decade and Neometal's latest movements look to be aimed at satisfying the global demand for in-demand battery metals via an alternative source to mining.
As global economies work towards achieving a net zero emissions target, interest in cleaner energy solutions, electric vehicle production and lithium-ion battery recycling will inevitably rise. With support from Mercedes-Benz and a growing inventory of recycling plants on the books, Neometals looks to be positioning itself at the tip of the spear.
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