Neometals will exit the battery recycling joint venture (JV) it shares with German global plant manufacturer SMS Group – Primobius – in a bid to focus more on capital-efficient opportunities.
Founded in 2020, Primobius is a 50:50 JV that focuses on developing sustainable processes for recovering and recycling lithium-ion (LiB) batteries.
Following a review into its LiB recycling strategy, Neometals has signed a binding term sheet to divest its 50 per stake in Primobius to SMS Group and its holding company for patented LiB recycling technology for $8.9 million.
An ongoing commercial compensation fee representing two per cent of Primobius’ annual revenues determined from July 1 2025 to June 30 2037 for $12.5 million will also be made.
Neometals cited the expected timing and working capital requirements behind commercialising the Primobius plant building JV, the timing of returns from future royalties and battery materials market conditions as the reasons behind the sale.
“We are proud of the pioneering role we’ve played in conceiving and developing the hydrometallurgical battery recycling technology and the progress made through the Primobius JV,” Neometals managing director Chris Reed said.
“We thank SMS Group for their strong partnership and shared belief and ongoing commitment to responsible battery recycling.
“Whilst we are disappointed that Neometals is unable to commit to the ongoing working capital required for this business, we are pleased to be in a position to be able to redirect the proceeds from the sale into nearer term, cash generative opportunities that align with our strategic priorities.”
Subject to regulatory approvals and SMS Group shareholder committee approval, the transaction is expected to be completed during the third quarter of 2025.
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