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What do you get when Neometals (ASX:NMT), joined by Mineral Resources (ASX:MIN), and Rio Tinto (ASX:RIO) walk into a room? A non-binding MOU to collaborate on lithium refining tech.
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Namely, testing the efficiency of a technology called ELi, owned by a 70/30 JV company called RAM, comprising Neometals and MinRes, in converting lithium chloride to lithium hydroxide.
Specifically, Rio Tinto is testing RAM’s claims that its ELi tech can convert chloride to hydroxide in a way that reduces the need for large volumes of chemicals.
This is achieved through completing the conversion “in a conventional chlor-alkali cell” – or in other words, an electrolyser.
“We are confident ELi can be an ideal complement to Rio Tinto’s direct lithium extraction (DLE) technologies,” Neometals MD Chris Reed said.
One key deliverable of the MOU is to see RAM probe Rio Tinto’s eagerness to fund optimisation work, ultimately eyeing an evaluation licence deal that would presumably generate revenue.
RAM would like a binding deal, too.
For Rio, the ELi tech could be of use – given low lithium prices, it would pay to be able to minimise downstream costs as much as humanly (and chemically) possible.
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Perhaps, then, an opportunity borne out of crisis. Markets liked the news: Shares were up nearly 6% late morning.
NMT last traded at 7.2cps.
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