Battery materials recycler Neometals announced that its joint venture company, Primobius GmbH, has received a substantial purchase order (PO) from Mercedes-Benz for the supply of a hydrometallurgical refining Hub.
The Hub is intended for installation at Mercedes’ Kuppenheim operation in Germany, marking a significant milestone in the partnership between the two entities, the ASX-listed company said in a media release.
Primobius, a battery recycling joint venture equally owned by Neometals and SMS group GmbH, has been actively commercialising a patented Lithium-ion Battery (LiB) recycling process.
The €18.8 million (AUD 30.8 million) PO is part of a cooperation arrangement with Mercedes, where Primobius will be responsible for engineering, equipment supply, and installation of a 2,500-tonnes-per-annum fully-integrated, closed-loop Mercedes LiB Recycling Pilot Plant.
The Mercedes Pilot Plant, consisting of the “Mercedes Spoke” followed by the “Mercedes Hub,” represents Mercedes-Benz’s foray into LiB recycling, Neometals noted.
This move aligns with the automotive giant’s commitment, as stated in the ‘Kuppenheim Ground-Breaking Ceremony’ Press Release of 3 March 2023, to cut resource consumption and establish a closed-loop recycling system for battery raw materials, supporting its transition to electric-only vehicles.
The Mercedes Hub PO signifies the completion of Primobius’ contractual obligations related to the construction of the Mercedes Pilot Plant.
This achievement follows the previously secured Spoke PO and highlights the scalability and effectiveness of Primobius’ technology in meeting the demands of global Original Equipment Manufacturers (OEMs), particularly within the automotive industry.
The Mercedes Pilot Plant aims to recover critical materials, including lithium, nickel, and cobalt, for the production of 50,000 battery modules intended for new Mercedes vehicles.
Successful commissioning and steady-state operations will not only de-risk further scale-up to 21,000 tonnes per annum but also mark a crucial step in advancing Primobius’ industrial-scale solution for Mercedes.
Chris Reed, Neometals’ managing director, expressed pride in collaborating with Mercedes on its quest to spearhead the closed-loop recycling of lithium batteries.
The partnership illustrates some distinctive features of Primobius’ business model, including the capacity to provide plants and offer technology licenses, allowing OEMs to reclaim battery materials from discarded and end-of-life batteries.
“Supply certainty, low operating costs and low carbon footprint are key value drivers for OEM’s looking forward,” Reed noted.
Primobius has already commenced the installation of the Spoke plant equipment and is now set to begin the fabrication of the Hub equipment supply package, demonstrating the company’s commitment to advancing sustainable and innovative battery recycling solutions.
