Neometals Ltd (ASX:NMT, OTC:NMTAY, AIM:NMT) rose 5% as it unveiled a strategy update that will see it regroup around Primobius, its LiB Recycling joint venture with SMS group.
Non-core assets will be sold and partners sought to help develop the group’s other technologies.
An option to acquire 80% of private US company Precious Metals Recovery with proprietary technology to reclaim precious metals from industrial waste will also lapse.
“A simplified structure and focus on the Primobius plant building joint venture targets an optimum path to creating and realising shareholder value,” said the Neometals statement.
"These steps and an existing austerity plan are expected to lower the corporate and administrative cost base by approximately 40% year-on-year," it added with those staff being made redundant already notified.
Neometals recently raised A$4.5M to support Primobius' push to become a leading supplier of LiB (lithium batteries) recycling plants to the global EV supply chain.
Primobius' patented recycling process is being industrially validated through the delivery of a 2,500 tpa plant for Mercedes-Benz in Kuppenheim, Germany, following which it will license the technology for larger plants.
Chris Reed, Neometals’ managing director, said: "We have taken these tough but necessary decisions to simplify our strategy, focus and organisation to prioritise the growth of the Primobius revenue base and forward order book.
"Primobius is a market leader, delivering a first-of-a-kind integrated recycling plant for Mercedes-Benz, a global marquee carmaker.
"The headwinds in the battery materials sector dictate that we must adapt to suit conditions by conserving capital, securing partners to fund our pre-commercial technologies and divesting non-core assets."
Shares rose 0.25p to 4.5p.