Primobius and Stelco Extend Partnership

Highlights:

• Stelco Inc. has granted an extension until June 30, 2025, for Primobius' option to acquire up to 50% of its lithium-ion battery recycling business.
• Despite changes in the agreement, Primobius maintains its commitment to achieving commercial spoke product readiness by April 2024.
• Primobius plans to offer a fully-integrated plant supply contract to Stelco SPV and other customers in the June quarter of 2025.

Stelco Extends Primobius' Option: Expanding Lithium-Ion Battery Recycling Business

Stelco Inc. has granted an extension until June 30, 2025, for Primobius' option to acquire up to 50% of its lithium-ion battery recycling business. This extension signifies a strategic move in the collaboration between innovative battery materials recycler Neometals Ltd and Stelco.

Amendments to Technology License Agreement: Aligning for Integrated Plant Offer

Primobius, a joint venture between Neometals Ltd. (ASX: NMT) and SMS group GmbH, has modified the technology license agreement with Stelco's lithium-ion battery recycling special purpose vehicle (Stelco SPV). The amendment aligns the product readiness definition with a fully-integrated plant offer before June 30, 2025, enhancing operational efficiency.

Commercial Spoke Product Readiness: On Track for April 2024

Despite changes in the agreement, Primobius maintains its commitment to achieving commercial spoke product readiness by April 2024, following the installation of the Mercedes-Benz spoke. This milestone reinforces Primobius' dedication to innovation and timely project delivery.

Strategic Shift in Business Model: Securing Supply for North American Carmakers

The joint venture aims to establish a fully-integrated operation, offering North American carmakers a secure supply of key battery cathode chemicals from end-of-life electric vehicles. This strategic shift in the business model reflects Primobius' responsiveness to the preferences of end customers and the growing demand for sustainable battery materials.

Future Plans and Commitment to Sustainability

Primobius plans to offer a fully-integrated plant supply contract to Stelco SPV and other customers in the June quarter of 2025. This follows the completion of detailed engineering studies and factory acceptance testing of the fully-integrated Mercedes-Benz 2,500tpa pilot plant. Neometals Managing Director Chris Reed emphasizes their commitment to becoming a leading LiB recycling plant provider, demonstrating efficacy and sustainability at increasing scales globally.

Conclusion

The Primobius-Stelco collaboration continues to evolve, with strategic amendments and a steadfast commitment to sustainable battery material recycling, reinforcing the partnership's position in the dynamic market.

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