Neometals Ltd (ASX:NMT, OTC:RDRUY, AIM:NMT) has completed a key phase of its lithium chemical pilot trial, it said on Friday, which could further buoy its share price this week.
The trial tested the company’s ELi technology, which uses electricity to purify lithium chloride solutions and produce lithium hydroxide or lithium carbonate.
The battery materials recycler’s share price got a big boost earlier in the week, on 8 November, after it announced positive nickel-sulphate production from the Promobius lithium-ion battery recycling joint venture it runs with SMS group.
Its London Stock Exchange-listed shares leapt from a price of 13p per share at closing on 7 November to a peak of 16p when markets opened yesterday, following the news that the trial exceeded Chinese cathode producers’ requirements.
In a statement today, the company said that the purification phase of the trial, which processed South American salar brine concentrate, removed more than 97% of the impurities that can affect the efficiency and quality of the electrolysis process.
The purified brine solution met the specifications for the next stage of the trial, which will involve electrolysis and crystallisation, Neometals said.
The ELi technology, owned by Neometals subsidiary Reed Advanced Materials Pty Ltd, has the potential to lower operating costs and increase product purity while reducing the carbon footprint, according to the company.
The technology is being co-funded and co-developed by Bondalti group, Portugal’s largest chlor-alkali chemical producer and part of José de Mello Group, one of Portugal’s largest corporations.
The pilot trial is a critical step towards the commercialisation of the ELi technology and the development of a demonstration plant in Portugal.
The plant will aim to produce high-quality lithium chemicals for the growing European battery market.
Neometals managing director Chris Reed said: “We are delighted with the results of the purification phase of the pilot trial, which confirm the robustness and scalability of our ELi technology.
“We look forward to the next stages of the trial and the continued collaboration with Bondalti group, our strategic partner in Europe.”
Neometals’ shares are up 2.77% today, compared to yesterday’s closing price, trading at a price of 14.10p per share this morning.