Neometals Ltd (ASX: NMT) shares are taking off on Wednesday.
In morning trade, the ASX lithium stock is up 17% to 20.5 cents.
Though, it is worth noting that its shares remain down approximately 75% on a 12-month basis despite today's strong gain.
Why is this ASX lithium stock surging today?
Investors have been buying Neometals shares today after the battery materials recycler released an update on its Primobius joint venture.
Primobius is a 50:50 joint venture between Neometals and German global plant manufacturer SMS group. It is focused on the development of sustainable processes for the recovery and recycling of lithium-ion batteries (LiB).
According to the release, Primobius has received a purchase order for the supply of a hydrometallurgical refining Hub from automotive giant Mercedes-Benz (ETR: MBG). The hydrometallurgical refining Hub will be installed at the automaker's Kuppenheim operation in Germany.
Neometals notes that the order value is estimated to be 18.8 million euros (A$30.8 million) and was awarded as part of a cooperation arrangement. Under the cooperation, Primobius is responsible for the engineering, equipment supply, and installation for a 2,500tpa fully-integrated, closed loop Mercedes LiB Recycling Pilot Plant.
The Hub is being designed to match the capacity required to process intermediate feed material generated from the front-end refining Spoke.
'Proud to partner with Mercedes'
Neometals' Managing Director, Chris Reed, was very pleased with the news. He said:
We are proud to partner with Mercedes in its journey to lead the closed-loop recycling of lithium batteries. The relationship exemplifies some of the unique aspects to Primobius' business model.
One of these is the ability to supply plant and offer technology licences so OEMs can retain their battery materials from scrap and end-of-life batteries. Supply certainty, low operating costs and low carbon footprint are key value drivers for OEM's looking forward. Our measured approach to delivering scalable solutions with our partner and leading plant builder SMS augurs well for penetrating this enormous addressable market.
