Company Interview / The small cap following the lithium momentum

Key points:

Neometals (ASX:NMT) announces three-year ELi process collaboration with De NoraPiloting with Rio Tinto (ASX:RIO), targeting technology licensing for lithium conversionEnvironmental sustainability and cost efficiency are central to the Eli processStrategy includes gold asset JV and expanded lithium operations

Neometals (ASX:NMT) shares are rising following the announcement of a three-year collaboration with De Nora to advance the ELi process for lithium conversion. Chris Reed highlights that the ELi process, developed in partnership with Mineral Resources (ASX:MIN), enables the conversion of lithium chloride to lithium hydroxide or carbonate at less than half the traditional cost and carbon footprint. The process has been piloted with Rio Tinto (ASX:RIO), which has entered into an MoU with Neo Metals, signifying strategic alignment and confidence in the technology’s scalability.

Reed states that Rio Tinto’s aspirations as a leading lithium producer, especially if the Glencore merger proceeds, position them to make a significant impact on global lithium supply. The company is pursuing a technology licensing model, aiming to help major mining firms like Rio Tinto reduce environmental impact while scaling production. Reed notes that large-scale players with robust balance sheets are essential to meet future lithium demand, and views Rio Tinto’s asset acquisitions as pivotal for the industry’s growth.

Looking ahead, Reed outlines a dual focus on re-entering cash flow via gold assets and leveraging the lithium extraction technology for further business development. Neometals previously partnered with Mercedes Benz on lithium battery recycling technology, a venture exited in response to challenging lithium prices and changing electric vehicle industry dynamics.