This announcement contains inside information
07 December 2022
Neometals Ltd
("Neometals" or "the Company")
Primobius Corporate Update
Highlights
· To accelerate Primobius' commercial activities Neometals has formalised 50:50 ownership of its lithium-ion battery recycling IP ("Recycling IP") with SMS group GmbH; and
· Primobius has also been issued with an exclusive full commercial operations license to the Recycling IP, replacing the previous limited evaluation licence, to support its multiple business models.
Emerging sustainable battery materials producer, Neometals Ltd (ASX: NMT & AIM: NMT) ("Neometals" or "the Company"), is pleased to announce that SMS group GmbH ("SMS group") will be issued with a 50% equity interest in Neometals' battery recycling IP holding company, ACN 630 589 507 Pty Ltd ("ACN 630") on an unconditional basis. ACN 630 has also granted Primobius an exclusive commercial activities phase IP licence to its battery recycling technology ("Commercial Licence"). The Commercial License replaces the evaluation activities phase licence previously granted in 2020 (for further details regarding the original Primobius arrangements refer to ASX announcement titled "Neometals and SMS Group Create JV to Recycle Lithium-Ion Batteries" released on 3 August 2020). These arrangements have been entered into together with a revised shareholders agreement in respect of Primobius GmbH ("Primobius") ("Revised Primobius SHA") reflecting a broader Primobius ambit of commercial operations.
Primobius was originally established in 2020 to build and operate lithium-ion battery ("LIB") recycling plants as principal. Neometals, through its wholly owned subsidiary ACN 630, owned 100% of its battery recycling technology ("Recycling IP") and granted Primobius a limited licence to undertake evaluation activities. The commercial success of Primobius is evident in the commercial recycling operation at Hilchenbach, Germany, the entry into partnership agreements, commercial licensing and potential plant supply agreements. A prime example of the success of the partnership/plant supply and licensing model was Primobius' execution of a cooperation agreement with LICULAR GmbH ("LICULAR"), a wholly-owned subsidiary of Mercedes-Benx AG ("Mercedes-Benz") (for full details refer to Neometals ASX announcement titled "Cooperation Agreement with Mercedes Benz" released on 13th May 2022).
Under the Revised Primobius SHA, Primobius will continue to complete a revised scope of the technical and economic evaluation of the ACN 630 Recycling IP. These evaluation activities include a new dedicated 'end-to-end' LIB recycling demonstration trial for customers commencing in December 2022 ("Customer Demonstration Trial" or "CDT") and delivery of an engineering cost study for a commercial-scale hydrometallurgical refinery ("Hub ECS"). The CDT will precede H1 2023 targets for execution of the Mercedes-Benz Spoke and Hub supply agreements, the Hub ECS and execution of the Stelco Spoke plant supply agreement. For further details refer to ASX announcement titled "Neometals Operations Update" released on 25 November 2022.
Chris Reed, Neometals Managing Director said:
The formalisation of the technology ownership with SMS and issue of the full Commercial License 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. We are proud of the progress by the Neometals and SMS teams and excited by the future prospects for the business. Neometals is committing more staff to Primobius' operations and management in Germany to support Primobius' transition into an autonomous global recycling business."
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 - Commercial & Investor Relations
+61 8 9322 1182
Cenkos 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
Jonathan Hardy
Jamil Miah
Camarco PR
+ 44(0) 20 3 757 4980
Gordon Poole
Charlotte Hollinshead
Lily Pettifar
https://www.londonstockexchange.com/news-article/NMT/primobius-corporate-update/15748540
