It has been mentioned that Primobius is targeting more than one...

It has been mentioned that Primobius is targeting more than one German carmaker and its associated supply chain. In addition to Mercedes, it makes sense that could be BMW given they are also a premium OEM that is predominantly using NMC batteries (as opposed to LFP). NMC batteries are more likely able to be economically recycled. Recent ASX announcements indicate Primobius hub output is currently being tested by Chinese electrolyte and cathode companies (lithium and nickel results have been positive to date with only cobalt outstanding). Mercedes major cell suppliers are CATL (Chinese), ACC and Farasis (Chinese). BMW’s major cell suppliers are Eve Energy (Chinese), SVolt (Chinese) and CATL. CATL, SVolt, Farasis and Eve all share a common Cathode maker in Ronbay. Ronbay is a very large Chinese cathode maker.

CATL have announced they are in talks with an anonymous potential European 'partner' to setup multiple battery recycling facilities in Europe. CATL currently have a producing factory in Germany and they are building a larger factory in Hungary to service Mercedes and BMW. Eve Energy have announced plans for a factory in Hungary to service BMW. Ronbay has announced that they will be setting up a cathode facility in Europe (location unknown at this stage) while Mercedes and BMW also have manufacturing facilities in Hungary already. Chris Reed has indicated in an interview that he was in Hungary earlier this year. It has been mentioned by Chris that it makes sense to position the shredding spokes next to the arisings (i.e next to the cellmaker for scrap or OEM for warranty returns and end of life). He said the hub makes sense to go next to the cathode factory.

Both Mercedes and BMW have recently announced plans to use LFP cells in their lower priced vehicles. At the recent AGM it was announced that Neometals were developing an LFP flow sheet. Ronbay supply both NMC and LFP cathode and they also in addition to Europe intend to setup a factory in the States.

Mercedes other major supplier ACC will build their second NMC battery factory (after their first in France recently opened) in Kaiserslautern, Germany. ACC has not announced their long term recycling plans yet and this was clearly the target of the recent Primobius cost study for Kaiserslautern.

The recent performance shares to Directors and Management were awarded on the last day to become eligible for the entitlement offer. I hope to see a strong uptake from all Directors, Management and David Reed as substantial shareholder.

All IMO and DYOR.