Neometals" or "the Company") Mercedes-Benz Battery Recycling...

Neometals" or "the Company")

Mercedes-Benz Battery Recycling Plant Purchase Order

Highlights

· Primobius cooperation with Mercedes-Benz ("Mercedes") advances with purchase order for fabrication, installation and commissioning of a 10tpd lithium-ion battery ("LIB") shredding 'Spoke';

· Mercedes recycling plant installation is scheduled to commence in Q4 2023, immediately after building completion; and

· The Primobius 10tpd Spoke is 'product ready' and can now be supplied to existing licensees and new customers. The Mercedes Hub is scheduled to be 'product ready' in the SepQ 2023.

Sustainable battery materials producer, Neometals Ltd (ASX: NMT & AIM: NMT) ("Neometals" or "the Company"), is pleased to announce that Primobius GmbH ("Primobius"), the battery recycling incorporated joint venture ("JV") company owned 50:50 by Neometals and SMS group GmbH ("SMS"), has received a Purchase Order ("PO") for supply of a 10 tonne per day ("tpd") Spoke with Mercedes for installation at Kuppenheim in southern Germany.

The PO was awarded as part of a cooperation arrangement with Mercedes ("Cooperation"). Under the Cooperation, Primobius is responsible for the engineering, equipment supply and installation for a fully integrated, closed loop Mercedes LIB Recycling Plant ("Mercedes 10tpd Spoke" followed by "Mercedes 10tpd Hub") (together "Mercedes LIB Recycling Plant") (for full details refer to Neometals ASX announcement headlined "Cooperation Agreement with Mercedes Benz" released on 13^th May 2022).

The Mercedes LIB Recycling Plant marks the automotive giants' entry into the field of LIB recycling. As set out in the Mercedes 'Kuppenheim Ground-Breaking Ceremony' Press Release dated 3^rd March 2023, the Mercedes LIB Recycling Plant at Kuppenheim "aims to cut resource consumption and establish closed-loop recycling of battery raw materials as (Mercedes) moves towards going electric only". The facility is expected to have an annual capacity of 2,500 tonnes, recovering materials (including lithium, cobalt, nickel, and manganese amongst others) which will be fed back into production of a targeted 50,000 battery modules for installation into new Mercedes vehicles.

The Mercedes Spoke PO marks a significant Primobius milestone, it represents the first commercial recycling plant supply agreement to a global electric vehicle OEM and the first significant revenue. The award is strong validation of the efficacy and scalability of the Primobius technology to meet the needs of global OEM's generally, and the automotive industry more specifically. The Mercedes LIB Recycling Plant at Kuppenheim will showcase Primobius' integrated recycling solution to recover and regenerate battery materials for use in new cell production.

Primobius is finalising the front-end-engineering ("FEED") activities for the integrated Mercedes LIB Recycling Plant and expects a separate Hub PO in the Sep Q 2023. Primobius' immediate priority is completion of procurement and fabrication of the plant and equipment supply package. Spoke Installation is planned to commence in Q4 2023 with commissioning set to commence in Q1 2024.