The Neometals Ltd (ASX: NMT) share price is in the red in early trade this morning, currently down 1.18% at 84 cents.
Today's dip comes after Neometals confirmed it had commissioned the first stage of its battery recycling trial.
Let's investigate further.
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Quick recap on Neometals
Neometals is in the minerals exploration business, primarily in lithium, titanium and similar metals. The company has operations in Western Australia and Germany, with expertise in extracting valuable metals for a range of applications.
At the time of writing, the company has a market capitalisation of $466 million.
Battery recycling plant – stage 1 commissioned
In today's release, Neometals advised it had successfully commissioned the front-end shredding and benefiction circuit (stage 1) of its lithium-ion recycling demonstration plant in Germany.
The plant is owned by Primobius GmbH, a 50:50 joint venture between Neometals and SMS Group GmbH.
According to Neometals, stage 1 involves the physical removal of metal electrodes, plastic separators and casings. It produces a combination of cathode materials which is known as "black mass".
The front-end commissioning also processed "dummy and charged" electric vehicles to produce plastic, steel and foil alongside around 1.5 tonnes of black mass.
In addition to stage 1, the facility comprises a back-end hydrometallurgical refining circuit as stage 2, which is currently "progressing through mechanical and electrical installation".
Neometals said the stage one commissioning was a "significant step" for Primobius. Investors can now expect the stage 2 refining circuit to be commissioned in September.
Commissioning of the hydrometallurgical refining circuit is expected in September 2021 with all trials due for completion by November 2021.
The hydrometallurgical refining circuit will produce, amongst other things, high-purity metal sulphate products for evaluation by potential customers, partners and offtakers.
Neometals share price snapshot
The Neometals share price has posted a year to date gain of 209%, extending the previous 12 month's climb of 367%.
These results have outpaced the S&P/ASX 200 Index (ASX: XJO)'s return of around 25% over the past year.
