News: NMT UPDATE 1-Australia's Neometals JV to supply lithium-ion battery 'spoke' to Mercedes

(Adds details of deal in paragraphs 2 to 5)

Aug 23 (Reuters) - Australia's Neometals Ltd (NMT) said on Wednesday that its joint venture Primobius has signed a deal with Mercedes MBGn.DE , under which it will supply lithium-ion battery "spoke" to the German automaker.

Primobius, which is 50% owned by Neometals, will provide 10 tonne per day of the battery shredding 'spoke' for Mercedes LIB Recycling Plant.

Spoke shredding is a process by which lithium-ion batteries are broken down into inert materials to directly remove the risk of fire or explosion.

The deal comes at a time when Australian lithium companies are looking to add value along the processing supply chain to capture greater margins.

Primobius will be responsible for the engineering, equipment supply and installation for a fully integrated, closed loop Mercedes LIB Recycling Plant, the company said in a statement.

The Perth-based battery materials producer also said Primobius is finalising the front-end-engineering activities for the recycling plant with spoke installation planned to commence in the fourth quarter of 2023.