Neometals Ltd has announced a strategic update in response to prevailing battery materials prices and market sentiment. The company will restructure and right-size its organization and cost base, prioritizing the progression of its LiB Recycling joint venture with SMS group GmbH, and implementing capital management initiatives through the targeted sale of non-core assets and strategic partnering. These measures are expected to lower the corporate and administrative cost base by approximately 40% year-on-year, supporting the commercialization of Primobius, the LiB Recycling joint venture, with the aim of becoming a leading supplier of LiB Recycling plants to the global EV supply chain.
Primobius' patented recycling process is being industrially validated through the delivery of a 2,500 tpa plant for Mercedes-Benz in Germany. The company plans to offer larger plants to its growing pipeline of license holders, MOU counterparties, and new customers. Neometals is actively supporting the development of pre-commercial lithium and vanadium recovery technologies to become independently funded and will consider options to potentially sell down beneficial ownership by procuring commercial partners for those business units.
The company's existing austerity plan, coupled with a recently announced placement raising approximately A$4.5M, is intended to support the commercialization of Primobius. Neometals aims to create and realize shareholder value through a simplified structure and focus on the Primobius plant building joint venture. The company's engineering cost studies indicate that both lithium and vanadium recovery technologies can potentially deliver users a step change in operating costs and carbon footprints of materials, critical for the long-term energy transition. Neometals is actively working towards these goals and will consider options to potentially sell down beneficial ownership by procuring commercial partners for those business units.