Neometals has signed a memorandum of understanding with German firm SMS Group to jointly fund and evaluate research on a lithium-ion battery recycling technology.
SMS has an exclusive due diligence period to test Neometal’s recycling technology, which will include the design, manufacture and operation of a two tonne per day demonstration-scale plant at SMS’ sites in Germany and Austria.
The recycling process recovers cobalt, nickel, copper and lithium as a high purity sulfate.
If successful, the two companies will form a 50:50 joint venture (JV) to commercialise the technology, with SMS procuring debt financing for no less than 50% of the capital expenditure required.
For Neometals part, it will contribute engineering design, fabrication, operation and maintenance of future recycling plants.
The Australia-based firm is running a Neometal’ Pilot Trial in Canada. The project is in the final stages after completing the Association for Advancement of Cost Engineering class five scoping study earlier this year.
The study found a 50-tonne per day battery feed was the most efficient scale for initial commercial operation, based on assumed metals costs of: $5,000 for lithium sulfate, $3,298 for nickel sulfate, $6,151 a tonne for cobalt sulfate and $2,030 a tonne for copper sulfate.
If all goes to plan, the companies are preparing for a final investment decision on a commercial recycling plant in Q1 of 2021.
