Primobius receives Mercedes-Benz refinery purchase order

Neometals’ (ASX:NMT) joint venture company Primobius has received a purchase order from Mercedes for a hydrometallurgical refining hub.

A 50:50 joint venture between Neometals and SMS group, Primobius is an incorporated battery recycling company commercialising a patented lithium-ion battery (LiB) recycling process.

Valued at $30.8m (€18.8m) the purchase order was awarded as part of a cooperation agreement with Mercedes.

Under the agreement, Primobius is responsible for the engineering, equipment supply and installation of a 2500tpa fully integrated, closed loop Mercedes LiB recycling pilot plant.

The hub is designed to match the capacity required to process intermediate feed material generated from the front-end refining Spoke.

The Mercedes pilot plant marks the automotive company’s entry into the field of LiB recycling. The plant aims to recover materials — including lithium, nickel and cobalt — which will be fed back into production of a targeted 50,000 battery modules for installation into new Mercedes vehicles.

Neometals managing director Chris Reed says the company is proud to partner with Mercedes.

“The relationship exemplifies some of the unique aspects to Primobius’ business model,” he said.

“One of these is the ability to supply plant and offer technology licences so OEMs can retain their battery materials from scrap and end-of-life batteries.

“Supply certainty, low operating costs and a low carbon footprint are key value drivers for OEMs looking forward.”

Beyond the Mercedes pilot plant, Primobius is focused on engineering an industrial scale solution for Mercedes.