Neometals inks battery recycling plant deal with Mercedes
Neometals announced on Friday that its battery recycling joint venture Primobius has signed a cooperation agreement with the Mercedes-Benz recycling subsidiary Licular.
The AIM-traded firm said the deal was conditional on Licular issuing a purchase order for the engineering, supply and installation of the necessary equipment for the recycling plant.
Subject to that purchase order, under the agreement Primobius would enter into a “long-term research and development collaboration to” recycle next generation cell formats and chemistries.
Primobius would also provide a non-exclusive technology licence for the recycling plant, know-how, staff training, engineering and plant management support to Licular.
During the plant’s operations phase, the parties would jointly evaluate an industrial-scale operation of Primobius' recycling technology.
The company said the recycling plant would be operated at an agreed Licular location, which Neometals expected to be Mercedes-Benz's Kuppenheim operations in southern Germany.
“We are delighted to formalise our long-term cooperation agreement with Mercedes-Benz,” said chief executive officer Chris Reed.
“The research and development collaboration is as important to us as successfully supplying the equipment.
“We are excited to work together to develop a more holistic recycling solution covering logistics, handling, compliance and sustainability.”
At 1534 BST, shares in Neometals were up 7.64% in London, at 77.5p.
Reporting by Josh White at Sharecast.com.