Neometals Ltd (ASX:NMT, OTC:RDRUY, AIM:NMT)'s shares rose on the announcement that its 50%-owned joint venture Primobious has inked a cooperation agreement with Mercedes-Benz's recycling subsidiary, Licular GmbH.
Primobius, which is a JV between Neometals and SMS Group GmbH, was named Mercedes-Benz's technology partner in March for the design and construction of a 2,500 tonnes per annum (tpa) lithium-ion battery recycling and waste disposal facility.
Licular was formed specifically to develop a holistic and sustainable recycling approach for lithium-ion batteries with Mercedes-Benz in a consortium-based research programme.
In a statement, Neometals said the agreement will become legally binding once Licular purchases equipment from Primobius to construct, commission, and operate the recycling plant.
The Mercedes-Benz's Kuppenheim facility in southern Germany is expected to house the recycling plant, which will have a capacity of 10 tonnes per day (2,500 tpa).
Primobius is to provide a technology licence for the recycling plant as well as its expertise and plant management support to Licular.
During the recycling plant operations phase, the parties will jointly evaluate an industrial-scale operation of Primobius' recycling technology.
The agreement runs until 31 December 2026 and can be extended.
"The R&D collaboration is as important to us as successfully supplying the equipment. We are excited to work together to develop a more holistic recycling solution covering logistics, handling, compliance and sustainability," said Neometals managing director Chris Reed.
Neometals shares rose 6.25% to 76.50p in early trade.