First step for Primobius to enter North American battery recycling market
Primobius GmbH is a 50:50 joint venture company owned by Neometals Ltd., Australia, and SMS group to commercialize an environmentally friendly recycling solution for end-of-life and scrap lithium-ion battery (LiB) cells. Primobius has now signed a memorandum of understanding (MoU) with Stelco Inc., Canada, a wholly-owned subsidiary of Stelco Holdings Inc., a Toronto Stock Exchange (“TSX”) listed steel manufacturing company headquartered in Hamilton, Ontario.
Stelco is pursuing initiatives with major automobile producers to recycle end-of-life automobiles to recover valuable materials for re-use or re-sale. Recycling the lithium-ion batteries contained in electric vehicle automobiles is a major aspect within this value chain, which will become even more important in the future. Stelco is looking to partner with a party with lithium-ion battery capabilities for the purposes of establishing a battery recycling business in North America as part of its broader automobile recycling pursuits. The Primobius recycling process offers large-scale sustainable recycling that can drastically reduce the CO2 footprint of vehicle and cell makers.
The MoU provides a framework towards establishing a 50:50 incorporated lithium-ion battery (“LiB”) recycling joint venture (“JV”) in North America. Under the JV, Primobius would supply a dedicated recycling facility adjacent to Stelco’s proposed vehicle recycling operation, for operation by the JV partners with equal contribution of capital costs and sharing of financial returns.
By entering into the MoU, Primobius and Stelco intend to share information, conduct due diligence, collaborate and build a business case for a long-term commercial relationship between the parties. The MoU contemplates the potential formation of a 50:50 incorporated JV to process battery cells arising primarily from scrap and end-of-life vehicles in North America.
Primobius will supply and construct a recycling plant initially with a nominal 20,000 tons-per-year cell processing capacity for the JV while Stelco will arrange sufficient supply of battery cell feed to the plant. The JV and Stelco would actively plan for an expanded capacity operation to capture future increased quantities of cells if they become available.
The facility will be modeled on Primobius’ proprietary refining process following the successful completion of the demonstration trials at its showcase facility. Primobius’ demonstration plant is currently being assembled in a dedicated warehouse at the SMS group manufacturing center in Hilchenbach, Germany.
This MoU with Stelco is significant and represents not only another recycling partnership validation for Primobius, but the first targeting end-of-life electric vehicle batteries. It also represents the first commercial relationship in North America, which is home to five battery megafactories in production. In this circular economy, Primobius represents an energy-efficient process and flexible system that meets the needs of various actors and helps achieve sustainability goals as it produces high purity chemicals for re-use in the next generation of LiBs.
Primobius Managing Director Horst Krenn commented: “We are very encouraged by the fast commercial progress being made by Primobius. A cooperation with Stelco marks another significant milestone for Primobius as we set a foot into the North American market. The fact that we more and more arouse the interest in the market with our recycling technology reflects the status of our project and the industrial scalability of our recycling solution.”
Primobius is an incorporated joint venture company owned 50:50 by Australian Securities Exchange listed company Neometals Ltd and SMS group GmbH.
Primobius will commercialize a joint recycling technology, offering a unique and sustainable method for recovering valuable lithium, nickel, cobalt and other materials from expended and scrap electric vehicles and consumer electronics LiBs.
Established in 1910, Stelco is primarily engaged in the production and sale of steel products. The company owns and operates the newest and one of the most technologically advanced integrated steelmaking facilities in North America. Stelco steel products are supplied to customers in the construction, automotive, energy and appliance industries across Canada and the United States, as well as to a variety of steel service centres, which are regional distributors of steel products. Stelco Holdings Inc., the 100% owner of Stelco, is listed on the Toronto Stock Exchange under the symbol ‘STLC’.
SMS group is a group of companies internationally active in plant construction and mechanical engineering for the steel and nonferrous metals industry. It has some 14,000 employees who generate worldwide sales of more than EUR 2.9 billion. The sole owner of the holding company SMS GmbH is the Familie Weiss Foundation.