Shares in Neometals Ltd (ASX:NMT, OTC:RDRUY, AIM:NMT) rose by more than 9% on Wednesday morning after it reported an increase in lithium recovery yields.
The battery recycling company said in a statement on Wednesday that new lithium recovery yields have improved from 83% or more to over 93%.
It said the latest hydrometallurgical refinery trials produced lithium fluoride with over 95% purity, which is expected to lead to both operating and capital cost savings.
Lithium fluoride is a major component in lithium electrolyte manufacturing and has traded at a 60% premium to lithium carbonate historically.
It is used to produce an inorganic compound called lithium hexafluorophosphate, which is a key ingredient used in the electrolyte solution in the lithium-ion batteries that power electric vehicles.
The results of the lithium recovery trials are expected to “increase revenues” at the Primobius lithium-ion battery recycling hub, which the company said also has the option to produce lithium sulphate that can be processed into lithium hydroxide.
Neometals’ managing director Chris Reed said: "Firstly, I would like to congratulate the Primobius, SMS and Neometals technical teams on another outstanding innovation. Our original plant design now includes EV module discharging and dismantling, and has the flexibility to produce intermediate, cathode or electrolyte lithium products. In addition to meeting regulatory and customer requirements, greater efficiency translates into stronger economics for the owners of our recycling plants."
Neometals' shares traded at AU$0.34 on Wednesday morning at 09:46, up 9.68% compared to AU$0.31 at close of trading yesterday.