Neometals (ASX:NMT) plans to keep itself exposed to energy storage given global lithium-ion battery capacity is expected to increase by 6x from 2016 to 2020.
The company’s core focus commodities are lithium and titanium.
Neometals has three lithium exposures – 1) a 13.8% interest in the Mount Marion Lithium Project which is currently in a sale process; 2) a 70% interest in the ELi® lithium hydroxide processing technology; and 3) a 50% ownership in the lithium battery recycling technology.
The company has two titanium exposures being the 100% owned Barrambie Titanium Project and the Neomet titanium processing technology.
The focus for FY17 includes:
- Sale process for 13.8% stake at Mount Marion;
- Advancing ELi® lithium hydroxide processing plant project;
- Fast-tracking evaluation of recycling process to recover lithium/cobalt/nickel from lithium-ion batteries; and
- Building royalty portfolio from commercialisation of Neomet process with Sedgman and Andritz.
Most recently, Neometals resolved build a pilot plant in Canada to accelerate the commercialisation of its technology to recycle lithium ion batteries.
The scoping study estimated operating cost of US$4.45 per pound contained cobalt, leaving a significant margin compared with the current spot prices of circaUS$24.50 per pound.
Agreements have been executed to construct the pilot-scale hydrometallurgical plant in Montreal with the plant expected to be operational in July.