MoU with Rio Tinto for ELi Process

Neometals Ltd (ASX: NMT) (“Neometals” or “the Company”), and leading mining services provider Mineral Resources Limited (ASX:MIN) (“MIN”) are pleased to announce that their 70:30 co-owned company, Reed Advanced Materials Pty Ltd (“RAM”) has entered into a non-binding Memorandum of Understanding (“MoU”) with the Rio Tinto Group (via Livent USA Corp.) (“Rio Tinto”). RAM is the holding company for ELi.

The MoU marks an important milestone in the development of ELi, which uses electricity to convert lithium chloride solutions into lithium hydroxide in a conventional chlor-alkali cell, replacing the need for large volumes of bulk chemical reagents required in the industry-standard, chemical precipitation process. ELi has the potential to deliver users a step-change in operating costs versus industry standard chemical precipitation.

Next steps may include optimisation test work, updating the process design criteria and subject to agreement by Rio Tinto, completion of detailed design and cost estimation for a demonstration scale plant in Argentina.

Neometals Managing Director, Chris Reed, says:
“We are naturally excited to collaborate with Rio Tinto to explore the potential to bring this technology closer to market. Rio Tinto is a global leader in energy transition commodities with scale, development capabilities and financial strength. We are confident ELi can be an ideal complement to Rio Tinto’s direct lithium extraction (DLE) technologies to further enhance the value of their Tier 1 portfolio.”

Under the MoU, Rio Tinto and RAM expect to discuss and explore opportunities to collaborate in relation to potential validation of the Eli including in relation to:

• the potential for Rio Tinto to fund optimisation test work and process design updates. Collaboration on further engineering or cost estimation activities will be subject to further agreement.
• the establishment of a framework agreement pursuant to which Rio Tinto can assess the performance of ELi through extended testing to Technology Readiness Level 7 through future trials; and
• the potential for an evaluation licence which would be subject to negotiation and execution of a separate agreement.

If considered mutually desirable as a result of the cooperation and collaboration efforts contemplated under the MoU, Rio Tinto and RAM may also seek to:

• establish a binding framework or similar agreement for field trials over extended operating times to test ELi in a real application; and
• subsequently, discuss and explore the potential for a further binding commercial agreement to develop a business case for the application of ELi to lithium brine assets owned by the Rio Tinto Group now or in the future.

The MoU does not create any exclusivity or commitment for either party to enter into a further agreement.

Except for provisions relating to confidentiality and intellectual property provisions, which are legally binding and enforceable, the parties agree that the remainder of the MoU is not intended to create legally binding obligations and is not enforceable by either party. Notwithstanding the non-binding nature, RAM sees value in Rio Tinto’s preparedness to execute a MoU on the terms summarised in this announcement.

There is no guarantee that any binding formal agreement will result from the cooperation and collaboration under the MoU.

The MoU continues for a term of 8 months, unless extended or terminated earlier by agreement of the parties in writing.

Detailed summary of the ELi Project

A presentation is included at Annexure A of this announcement to provide more detail on the ELi technology.

Authorised on behalf of Neometals by Christopher Reed, Managing Director.
ENDS

For further information, visit www.neometals.com.au or contact:

Christopher Reed 
Managing Director/CEO 
Neometals Ltd Corporate 
T +61 8 9322 1182 
E info@neometals.com.au 

Lucas Robinson 
Managing Director
Corporate Storytime 
T +61 408 228 889
E lucas@corporatestorytime.com