Emerging sustainable battery materials producer Neometals (ASX:NMT) reports it has secured 50% ownership and operatorship of incorporated joint venture (JV) vehicle RISAB, which is developing the Vanadium Recovery Project (VRP) in Finland.
The company says the balance of the RISAB equity is held by Australian mineral development company Critical Metals (LON:CRTM), of which Neometals holds 19% of Critical’s issued capital.
Under this JV, both companies are evaluating the feasibility of constructing a facility in Pori, Finland to process and recover ‘high-purity’ vanadium pentoxide (V2O5) from vanadium-bearing steel making by-product (Slag) generated or obtained by steel company SSAB in Scandinavia. Neometals also reports it has executed a technology licence for its slag processing intellectual property to RISAB for a 2.5% gross sales royalty.
Commenting on the agreement, Neometals Managing Director Chris Reed says: “We are pleased to formalise our ownership in the VRP and finalise the new supply arrangements with SSAB which supports our expanded plant size. Neometals will now finalise the evaluation activities and publish financial and carbon footprint metrics this quarter.
Importantly, Critical and Neometals have built a first-class, core management team for RISAB to operate the projects independently and support has been secured from leading Nordic investment banks who are managing the equity and debt funding processes.
“Importantly, Critical and Neometals have built a first-class, core management team for RISAB to operate the projects independently …”
Positive equity and debt outcomes will enable a positive investment decision under the SSAB supply agreement by 30 June 2023 which will be followed by commencement of our process plant construction in H2 2023.”
Neometals reports it has provided SSAB a guarantee for RISAB to enable execution of an amended feedstock supply agreement for Slag with SSAM EMEA AB and SSAB Europe. Under this binding Amended LD-Slag Supply Agreement, SSAB will supply 2 million tonnes of Slag with RISAB having the first right to purchase additional tonnes on an as available basis.
The agreement still contains the condition that the project investment decision must be made by 30 June 2023, but removes the requirement to be in production by 31 December 2024.
The company says the agreement also provides a ‘reasonable’ basis for the finalisation and release of feasibility study results based on a 300,000 tonnes per annum (tpa) feed rate, incorporating updated data from the previously announced Class 3 Engineering Cost Study. Additionally, Neometals reports it looks forward to sharing related outcomes on a materially complete Life Cycle Assessment.
Neometals is an emerging, ‘sustainable’ battery materials producer focused on developing a suite of green battery materials processing technologies that reduce reliance on traditional mining. The company’s primary focus is the Vanadium Recovery Project in Finland which it holds a 50% interest in.
The company has also developed a process for recycling lithium-ion batteries, and has patented technology to purify and electrolyse lithium chloride solutions to produce lithium hydroxide.
Images: Neometals Ltd
