Technology Minerals PLC (LSE:TM1) said it has agreed on terms to acquire the outstanding shares in its associate Recyclus.
Currently, Technology Minerals owns 48.35% of the battery recycler but this will increase to 100% following the issue to its partners of 921.5mln new shares at a price of 4.32p.
Recyclus, valued at around £80mln under the terms of the deal, has positioned itself to handle both lead-acid batteries used in petrol and diesel vehicles and the lithium-ion variants expected to power electric vehicles.
Direct sales of recovered materials from the batteries are expected to be its main revenue stream alongside finite material extraction and battery reuse.
Recyclus plans to open ten battery recycling plants, five Li-ion and five lead-acid, over the next six years, with the first two expected to open in the UK.
Currently, it has two subsidiaries Libatt Recycling (li-ion) and Halo Battery Recycling (lead acid).
In a statement, James Cable, Technology Minerals CFO, said: "The acquisition of Recyclus marks an important strategic move for the business with the potential to deliver significant shareholder value to both sets of shareholders."
“Our plan is to expand its commercial footprint in the UK and also the EU and US markets where we see the prospect for growth in line with the exponential growth in the electric vehicle markets and other battery-based sectors.
"We believe the industrial scale opportunity for Recyclus is immense as the world transitions from fossil fuels to electrification," he added.
Following the transaction, the Recyclus vendors will own 42% of the shares in the enlarged Technology Minerals company.
Robin Brundle, Recyclus’ executive chairman, and Alexander Stanbury, its chief executive, each hold shares and the deal is being classified as a related transaction.