Insights & News
Emerging, sustainable battery materials producer, Neometals Ltd (ASX: NMT & AIM: NMT) (“Neometals” or “the Company”), is pleased to announce the results of the Engineering Cost Study for a lithium chloride Brine conversion operation using the proprietary ELi™ electrolysis process owned by Reed Advanced Materials Pty Ltd (“RAM”) (70% Neometals, 30% Mineral Resources Ltd). The ECS is based on a plant with a production capacity of 25,000tpa of battery-grade lithium hydroxide monohydrate (“LHM”). ELi™ utilises conventional purification processes and chlor-alkali electrolysis cells.
The ECS was co-funded under a binding Co-operation Agreement (“ELi™ Co-operation”) with Portugal’s largest chemical producer, Bondalti Chemicals S.A. (“Bondalti”). The parties will co-fund pilot trial and evaluation studies to allow consideration of a decision to form a 50:50 incorporated joint venture (“JVCo”). JVCo would look to construct and operate a 25,000tpa lithium refinery at Bondalti’s extensive chlor-alkali operations in Estarreja, Portugal (“Estarreja Lithium Refinery” or “ELR”). We expect the commissioning and commencement of operations for the plant to take place in Q1 2027.
Neometals Managing Director Chris Reed said:
“Successful completion of the ECS has provided additional confidence in the operating and capital costs of the proposed Estarreja Lithium Refinery. The combination of Bondalti’s operating experience with RAM’s innovative Eli™ process for lithium brine concentrates can deliver a much needed domestic supply of lithium hydroxide in the EU. Furthermore, we are excited about the prospect of marketing a technology that can deliver a potential step-change in operating cost to developers of lithium brine sources. Lithium is the soft underbelly of the energy transition story, it is un-substitutable in EV batteries and the looming supply deficits appear permanent without innovation and government intervention. The US IRA and EU CRM Acts are evidence of the need to address this existential threat to car making in the West.”
The ECS was completed with assistance from leading Australian engineering firm Primero Group (“Primero”). The ECS has been completed to a ±15% level of accuracy to the AACE* Class 3 standard and subjected to internal and external reviews. Capital and Operating cost estimates are denominated in US dollars using an exchange rate of 1 Euro: 1.1 US$.
Neometals, via RAM, is commercialising ELi™ to produce lithium hydroxide from lithium chloride solutions using electrolysis. A feasibility study in 2016 (“Historical FS”) indicated the potential for ELi™ to significantly reduce the operating cost and carbon footprint associated with consumption and transport of carbon-intensive reagents used in conventional lithium refining processes. Neometals is encouraged by the results of the ECS, which confirms the potential for exceptionally low operating costs and competitive capital intensity. The operating cost is consistent with the 2016 Historical FS despite considerable industry cost escalation and the operating cost advantage over the conventional process has been maintained (see Figure 1). The ECS confirms the economic advantages of ELi™and Neometals expects the lifecycle assessment to confirm the low-carbon footprint of the process, which is just one of the associated environmental benefits that ELi™ has been designed to deliver to its users.
