Technology Minerals PLC (LSE:TM1) has secured its biggest commercial deal to date through its battery recycling arm Recyclus, which has signed a one-year contract with a global industrial group to process lithium-ion batteries.
The agreement will see end-of-life batteries sent to Recyclus’s plant in Wolverhampton, where they will be broken down and recycled.
The company will generate income through gate fees charged for accepting the material, as well as from selling the recovered materials, including so-called “black mass”, a substance containing key metals such as lithium, cobalt and nickel that can be reused in battery manufacturing.
The deal has the potential to generate up to £2 million, while CEO Alex Stanbury described the unnamed customer as a 'global major' in the industrial sector.
Recyclus, 48.35% owned by London-listed Technology Minerals, has landed a series of new contracts reflecting the growing demand for industrial-scale solutions to battery waste.
The company aims to position itself as a key player in the battery recycling sector as the use of electric vehicles and consumer electronics continues to rise.
CEO Stanbury, who is also a director of Recyclus, said: "This is our largest contract win to date and further highlights the strong momentum and commercial traction achieved in recent months.
"Following a steady stream of agreements for Recyclus, this contract illustrates the confidence leading manufacturers place in our solutions, reinforcing our position as a recycler of choice and ability to meet increasing demand as the world continues to move towards electrification."