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Neometals’ (ASX:NMT) Primobius sees delay at LIB recycling facility

ASX News, Materials
ASX:NMT      MCAP $65.39M
14 July 2022 14:09 (AEST)

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Neometals’ (NMT) joint venture company with SMS Group, Primobius, has seen a delay at its lithium recycling facility in Hilchenbach, Germany.

The company has delayed its internal engineering and cost study (ECS) for the project due to Primobius’ focus on the ramp up of its Hilchenbach Spoke operations as well as the recent Mercedes and Stelco agreements.

The ECS will now be delivered in two parts – an individual shredding plant (Spoke ECS) and a hydrometallurgical refining plant (Hub ECS).

Primobius is now expecting the Spoke ECS to be completed in July and the Hub ECS to be completed in the December quarter.

“Primobius’ commercial success in securing partners and customers has necessitated the decoupling of the previous integrated model to a two-part ‘spoke and hub’ approach, to enable timely delivery of plant supply contracts to meet LICULAR and Stelco’s
requirements,” Neometals Managing Director Chris Reed said.

“Near-term investment decisions will now be based on more accurate and detailed engineering and cost studies and actual equipment supply contracts from SMS group.

“This staged rollout addresses the immediate need for safe disposal and recovery of key LIB materials, ahead of truly closing-the-loop with integrated hydrometallurgical refining.”

On the market, NMT shares were up 2.72 per cent to trade at 94.5 cents each at 2:08 pm AEST.

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