Iondrive Advances Battery Recycling with 36% Lower CAPEX and Pilot Plant on Track

Strong Economic Validation of DES Technology

Iondrive Limited (ASX: ION) has delivered a robust update on its proprietary Deep Eutectic Solvent (DES) battery recycling process, underpinned by independent economic modelling that confirms a 36% capital expenditure (CAPEX) advantage over conventional hydrometallurgical plants in Europe. This modelling projects a post-tax net present value (NPV) of $249 million, an internal rate of return (IRR) of 17%, and a payback period of under six years, all based on conservative assumptions excluding government incentives.

The lower CAPEX and environmental benefits of the DES process position Iondrive well to address the growing European demand for onshore battery recycling capacity, especially amid heightened global trade tensions that underscore the strategic importance of securing critical minerals.

Pilot Plant Development on Schedule

The company has advanced its pilot plant engineering, appointing Wave International to complete the Front-End Engineering Design (FEED), with a Financial Investment Decision (FID) targeted for July 2025. The pilot plant, to be located at the University of Adelaide, is designed as a mobile unit capable of processing 10 tonnes of black mass annually. Commissioning is planned for late 2025, aiming to demonstrate continuous operation and produce sample materials for evaluation by original equipment manufacturers (OEMs).

This milestone is critical for validating the scalability and commercial viability of Iondrive’s closed-loop DES recycling technology, which has demonstrated recovery rates exceeding 95% for lithium, nickel, cobalt, and manganese in bench-scale tests.

Expanding Feedstock Trials and Commercial Partnerships

Iondrive is actively trialling its DES process on new feedstocks, including Mixed Hydroxide Precipitate (MHP) sourced from the United States, targeting more selective and sustainable extraction of nickel and cobalt. Parallel efforts are underway to assess the technology’s application to electronic waste recycling, focusing on precious metals like gold, silver, and palladium.

The company is also pursuing multiple grant applications, particularly in the European Union, in collaboration with strategic partners such as RWTH Aachen University and PEM Motion GmbH. These initiatives aim to secure non-dilutive funding to accelerate technology development and market entry.

Strategic Shift Away from Exploration

Reflecting a sharpened focus on its core DES technology, Iondrive is divesting its exploration business, including a binding agreement to sell a Rare Earths tenement for $100,000. The sale and ongoing negotiations to divest remaining exploration assets are expected to reduce the company’s annual cost base by approximately $600,000, enabling a more streamlined operational focus.

Notably, KoBold’s withdrawal from the South Korea joint venture has had minimal financial impact due to the scaled-back exploration activities.

Financial Position and Outlook

The company completed a $6 million placement at a 16.7% premium to the last traded price, with $4 million received in the second tranche post shareholder approval. Cash on hand stood at $7 million as of 31 March 2025, providing a solid runway to fund pilot plant commissioning and ongoing commercial activities.

Looking ahead, Iondrive aims to finalise its pilot plant FID, expand feedstock trials, formalise partnerships across the battery recycling value chain, and secure grant funding. These steps will be pivotal in transitioning from technology development to commercial deployment in the rapidly evolving critical minerals sector.