Neometals Secures A$10.1M Cash After Selling Lithium-Ion Battery Recycling Stakes
Neometals has completed the sale of its lithium-ion battery recycling business, securing over A$10 million in cash and refocusing on its core mining and processing projects.
- Sale of 50% interests in Primobius GmbH and related entity to SMS group GmbH completed
- Company now holds approximately A$10.1 million in cash
- Exit from lithium-ion battery recycling business confirmed
- Focus shifts back to Barrambie Gold and Titanium-Vanadium projects
- Continued development of lithium chemical and vanadium recovery technologies
Strategic Exit from Battery Recycling
Neometals Ltd (ASX – NMT) has officially completed the sale and transfer of its 50% stakes in Primobius GmbH and ACN 630 589 507 Pty Ltd to SMS group GmbH, marking its exit from the lithium-ion battery recycling sector. This move crystallises a significant shift in the company’s strategic direction, allowing it to consolidate resources and sharpen its focus on core mineral assets and proprietary processing technologies.
Strengthening the Balance Sheet
Following the transaction, Neometals reports holding approximately A$10.1 million in cash, a healthy liquidity position that provides financial flexibility for ongoing exploration and development activities. While the announcement does not disclose the sale price or detailed terms, the cash injection is a clear boost to the company’s balance sheet, supporting its next phase of growth.
Refocusing on Barrambie and Processing Innovations
Neometals is now concentrating efforts on its Barrambie Gold Project, located in the prolific Murchison Gold Belt, where active exploration is underway to unlock new gold discoveries. Alongside this, the company is progressing the divestment of its Barrambie Titanium and Vanadium asset, which holds one of the world’s highest-grade hard-rock titanium deposits.
Simultaneously, Neometals continues to advance its portfolio of sustainable processing solutions. This includes the patented ELi Process™ for lithium chemicals, developed in partnership with Mineral Resources Ltd and Rio Tinto, which aims to produce battery-grade lithium compounds at competitive costs. The company is also developing a vanadium recovery process targeting high-purity vanadium pentoxide production from steelmaking by-products, with plans for commercialisation through technology licensing.
Implications for Investors and the Market
The divestment from the battery recycling business signals a strategic pivot towards upstream mineral exploration and proprietary processing technologies, areas where Neometals sees greater long-term value creation potential. Investors will be watching closely to see how the company deploys its strengthened cash position and whether the divestment accelerates progress on its flagship projects.
Bottom Line?
Neometals’ exit from battery recycling frees capital and focus for its promising mining and processing ventures.
Questions in the middle?
- What were the financial terms and valuation of the sale to SMS group GmbH?
- How will Neometals allocate the A$10.1 million cash injection across its projects?
- What is the timeline for commercialisation of the ELi Process™ and vanadium recovery technology?
