Primobius PO10 Jan 2024 07:36
Today's RNS is another step in the right direction. But, it does not mention money... Will it require funding from shareholders? Will there be any profit or, as I expect, is this going to be a draw on resources as part of growing intellectual capital?
Claude's summary of RNS
Here is a 500 word summary of the document:
Primobius, a lithium-ion battery recycling joint venture between Neometals and SMS group, has received an €18.8 million purchase order from Mercedes-Benz to supply and install a hydrometallurgical refining hub at Mercedes' battery recycling pilot plant in Kuppenheim, Germany. This refining hub will process intermediate products from the 2,500 tonne per annum battery shredding plant, also being supplied by Primobius, to complete Mercedes' closed-loop lithium-ion battery recycling facility.
The purchase order marks Mercedes' entry into battery recycling as it transitions to electric vehicles. The Kuppenheim plant aims to cut resource use and enable closed-loop recycling of raw materials like lithium, nickel and cobalt to feed back into Mercedes' production of around 50,000 new battery modules. The order validates the scalability of Primobius' recycling technology to meet automotive industry needs.
The hub equipment supply contract follows an earlier contract for the shredding plant ("spoke"). Together they complete Primobius' arrangements for the pilot plant. Successful commissioning is intended to de-risk scaling up to an eventual 21,000 tonne per annum industrial capacity. Beyond the pilot, Primobius is focused on engineering this larger solution for Mercedes.
The relationship shows Primobius' business model combining plant supply and licensing so manufacturers can recycle their own battery scrap and retain materials. This model offers supply certainty, low costs and low carbon footprint. Following fabrication, installation of the spoke will commence ahead of the hub equipment.
Primobius is a joint venture focused on sustainable lithium-ion battery recycling processes. The purchase order evidences the economic and environmental benefits of its technologies in enabling a circular supply chain to support the energy transition. Alongside its work with Mercedes, Primobius has commenced licensing discussions with Canadian company Stelco.
The contract award continues the commercialisation of Neometals’ own recycling, lithium chemicals and vanadium recovery technologies. Through industry partnerships, Neometals aims to demonstrate the viability of sustainable production of battery materials from recycling and steel waste. This reduces reliance on traditional mining while creating resilient circular supply chains.