Neometals Faces Critical Tests as Battery Plant Commissioning and Gold Exploration Loom
Neometals Ltd has bolstered its financial position with a A$7.1 million capital raise while progressing key projects including the commissioning of a lithium-ion battery recycling plant in Germany and preparing for maiden gold drilling at Barrambie.
- Raised A$7.1 million via placement and entitlement issue
- Commissioning of 2,500tpa lithium-ion battery recycling plant with Mercedes-Benz in Germany
- Successful pilot trial producing high-purity lithium hydroxide monohydrate
- Maiden gold exploration drilling planned for March 2025 at Barrambie
- Ongoing project financing for vanadium recovery plant in Finland
Financial Strength and Capital Raise
Neometals Ltd closed the December 2024 quarter with a robust cash balance of A$10.7 million, complemented by investments and net receivables of an additional A$10.7 million, and importantly, no debt. The company further strengthened its financial footing by raising A$7.1 million through a combination of a A$4 million placement and a A$3.1 million entitlement issue, priced at A$0.09 per share. This capital injection provides Neometals with the necessary resources to advance its diversified portfolio of sustainable processing technologies and exploration projects.
Progress in Lithium-Ion Battery Recycling
Neometals’ lithium-ion battery recycling joint venture, Primobius GmbH, marked a significant milestone with the official opening of a 2,500 tonnes per annum (tpa) integrated recycling plant in Kuppenheim, Germany. Supplied to automotive giant Mercedes-Benz, this facility is currently undergoing commissioning and aims to produce high-purity battery materials for reuse in electric vehicle supply chains. The plant’s successful commissioning and acceptance testing phases, scheduled through 2025, will pave the way for commercial-scale integrated recycling plants targeting approximately 20,000 tpa capacity.
Primobius continues to expand its business development pipeline, having issued multiple exclusive and non-exclusive technology licenses across North America, Europe, and Scandinavia. The company’s patented mechanical-hydrometallurgical process, supported by a portfolio of granted and pending patents, positions Neometals as a key player in the circular economy for lithium-ion batteries.
Advances in Lithium Chemicals Production
On the lithium chemicals front, Neometals’ 70% owned Reed Advanced Materials Pty Ltd (RAM) successfully completed the final stage of its ELi™ Process pilot trial, producing high-purity lithium hydroxide monohydrate. This electrolysis-based process offers potentially lower operating costs and a reduced carbon footprint compared to conventional methods. The pilot trial data validated key assumptions around power consumption and membrane durability, supporting the scalability of the technology. RAM is now progressing partner selection for industrial validation through continuous demonstration plant trials, aiming to commercialize this innovative lithium extraction method.
Vanadium Recovery Project Financing
Neometals’ vanadium recovery initiative, led through its 87.1% owned Recycling Industries Scandinavia AB (RISAB), is advancing its project financing efforts for a commercial plant in Finland. The project benefits from substantial EU-backed funding, including a €15 million conditional investment grant and a potential 20% investment tax credit from the Finnish government. RISAB’s collaboration with EIT RawMaterials GmbH, which holds a minority stake, underscores the strategic importance of this low-cost, low-carbon vanadium production process targeting battery and aerospace alloy markets.
Exploration at Barrambie Gold and Titanium-Vanadium Projects
Neometals is preparing to commence its maiden gold drilling program at the Barrambie Gold Project in Western Australia during the March 2025 quarter. The Barrambie Greenstone Belt, historically underexplored below 60 meters depth, hosts a maiden gold exploration target estimated between 335,000 and 775,000 ounces at grades ranging from 1.3 to 2.3 grams per tonne. An Aboriginal Heritage Survey has been completed, and regulatory approvals secured, setting the stage for what could be a significant brownfields discovery in a region with existing processing infrastructure.
Meanwhile, discussions continue regarding the divestment of the Barrambie titanium and vanadium mineral resources, which represent some of the world’s highest-grade hard-rock titanium deposits. This divestment could unlock value and allow Neometals to focus on its downstream processing technologies and exploration upside.
Outlook
Neometals’ diversified approach, spanning battery recycling, lithium chemical production, vanadium recovery, and gold exploration, positions it well to capitalize on the growing demand for sustainable critical materials. The company’s strong cash position and recent capital raise provide a solid foundation to advance its technology commercialization and exploration milestones in 2025.
Bottom Line?
Neometals is set to transform its pilot successes into commercial realities, with upcoming milestones likely to define its market trajectory.
Questions in the middle?
- Will the Kuppenheim plant meet its commissioning and acceptance testing timelines to enable commercial-scale rollouts?
- How will partner selection and funding progress for the ELi™ lithium chemicals industrial validation phase?
- What initial results will the maiden gold drilling program at Barrambie reveal about the project's scale and grade?
