The Neometals Ltd (ASX: NMT) share price is rocketing today following the company announcing its intention to collaborate with a major automobile maker.
At the time of writing, the advanced materials company's shares are up 12.59% to $1.655 apiece. They hit an intraday high of $1.77 each this morning.
What's driving Neometals shares higher?
Investors appear ecstatic with news surrounding the company, sending the Neometals share price well into positive territory.
In a statement today, Neometals advised that Mercedes-Benz AG's wholly-owned subsidiary Licular plans to cooperate with Primobius. The latter is an incorporated joint venture company owned 50:50 by Neometals and SMS group.
The German automobile powerhouse earlier announced in a media release that Primobius is its preferred technology partner for a proposed battery recycling plant. Plans are underway for the facility to be constructed at Mercedes' Kuppenheim operations in Southern Germany.
While currently in advanced discussions, both companies are putting the final touches in place for a formal agreement.
The recycling plant is aiming to have a normal recycling capacity of 2,500 tonnes per annum of lithium-ion for Licular's facilities.
Neometals managing director Chris Reed commented:
We are proud that Mercedes-Benz, one of the greatest names in the automobile industry, has announced its intention to partner with Primobius. Mercedes-Benz has made public its clear commitment towards sustainable battery recycling, with Primobius as its preferred technology partner for the design and construction of an integrated recycling plant in Kuppenheim.
Lithium battery recycling supports conservation of resources, decarbonisation and supply chain resilience and we are excited to assist Mercedes in its goal to re-use recovered materials for the manufacture of new cells for Mercedes-EQ vehicle models.
All of our discussions to date have been very positive and we look forward to continuing our negotiations and entering into binding legal agreements in the near future.
Neometals share price snapshot
Over the past 12 months, the Neometals share price has rocketed by almost 340%.
The company's shares hit an all-time high of $1.85 in January, before moving in circles thereafter.
Based on today's price, Neometals presides a market capitalisation of roughly $900 million, with approximately 548.38 million shares on issue.
