The Hannans Ltd (ASX: HNR) share price is surging on the back of an update to the company's plan to recover battery metals from spent lithium-ion batteries.
The company has previously signed a memorandum of understanding with Critical Metals' subsidiary, LiB Recycling.
Under the agreement, the pair will plan to form a joint venture to commercialise lithium-ion battery recycling technology in Europe's Nordic region.
Today, Hannans announced that the understanding's first precedent has been fulfilled, with Critical Metals' shareholders voting in favour of the partnership.
At the time of writing, the Hannans share price is 3 cents, 30.34% higher than its previous close.
Let's take a closer look at today's announcement from the battery metal exploration company-turned-battery recycler.
One step closer to battery recycling
The Hannans share price is surging on the back of news of its plan to retrieve battery metals by recycling lithium-ion batteries.
The company is hoping to enter into a joint venture with LiB Recycling to commercialise a battery recycling project in Norway, Sweden, Denmark, and Finland.
The memorandum of understanding between Hannans and LiB Recycling – the first step towards a joint venture – has passed its first hurdle.
There are now only 2 conditions on which the agreement is balancing on. Hannans believes the last conditions will be satisfied by 30 November.
LiB Recycling has exclusive rights to commercialise Neometals Ltd's (ASX: NMT) technology in the Nordic region. Neometals' technology can recover battery metals from spent lithium-ion batteries.
Under the joint venture, Hannans will earn its interest by funding and managing certain tasks and activities. These include funding the battery recycling project through to a final investment decision.
According to Hannans, the lithium-ion battery recycling technology has gone through pilot plant and validation test work programs, leaving it substantially derisked.
The company also states the Nordic region has the highest electric vehicle penetration rates in the world.
Additionally, Europe doesn't produce enough metals to meet its massive growth in the uptake of batteries.
Lastly, European battery and electric vehicle manufacturers must reuse metals to meet legal, social, and environmental obligations.
Hannans share price snapshot
2021 has been a big year for the Hannans share price.
Right now, it is 500% higher than it was at the start of this year. It has also gained 400% since this time last year.
