The Neometals Ltd (ASX: NMT) share price is gaining today following some glowing media coverage.
Right now, the Neometals share price is 76 cents, 5.56% up on its previous close after reaching a high of 77 cents earlier today.
The gains come after the nickel and lithium miner’s CEO, Chris Reed, spruiked the business’ battery recycling arm.
Reed has reportedly said the company’s battery recycling business looks like it will fill a gap in Europe’s increasing battery production. If that’s the case, the company could be riding a wave to hold up the future of Europe’s electric vehicle market.
Let’s take a look at the latest news of Neometals.
Is Neometals creating Europe’s newest industry?
The Neometals share price is surging following reports the company’s work is filling holes in the lifecycle of lithium-ion batteries.
Reed told The Australian that the increasing number of carmakers manufacturing their own lithium-ion batteries will lead to a glut of batteries in need of recycling in the coming years.
He said recycling batteries can be troublesome for battery manufactures. However, it’s particularly important in Europe as the metals that go into batteries aren’t mined on the continent.
Further, Reed said spent batteries pose a considerable risk to ground water and the broader environment if they’re not recycled.
He also pointed out that 8 tonnes of carbon emissions are produced alongside each tonne of new lithium-ion batteries. In effect, it means electric vehicles aren’t as carbon neutral as they’re often spruiked to be.
Investors interested in the Neometals share price might want to keep an eye out for demand for battery recycling, as the Neometals boss believes the company will soon be a cornerstone of Europe’s electric vehicle market.
The company recently commissioned the first stage of its lithium-ion battery recycling demonstration plant.
Neometals is in a unique position as it mines battery metals in Australia as well as recycles disused lithium-ion batteries. However, Reed told the newspaper that by recycling batteries, his company is the lowest-cost nickel producer in the world.
The Australian quoted Reed as saying:
But you are at the dawn of a tsunami. We know because we can see the battery plants that have been built, we know the adoption rates of the cars. The only thing we are more confident about than the volumes being produced is that they bloody wear out quicker than you think.
Neometals share price snapshot
The Neometals share price is currently 174% higher than it was at the start of 2021. It has also gained 319% since this time last year.