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- Neometals join MOU with Indian company Manikaran to produce India’s first lithium refinery.
- The companies are tapping into the expanding electric vehicle market, with India targeting 100 per cent electric vehicle sales by 2030
- A feasibility analysis is currently taking place which is expected to be complete in 18 to 24 months. From here a 50:50 joint venture will be considered
- Neometals share price has had little movement today, currently sitting at $0.22 per share
Neometals has joined an Indian company Manikaran Power, which will see them jointly fund India’s first lithium refinery.
The project follows the advancement of Neometals’ direction in becoming a lithium chemical producer. Through the lithium refinery process, a battery product for electric vehicles will be produced.
“India’s growth projections for electric vehicles and lithium battery manufacturing capacity, this opportunity to partner in India’s first domestic lithium development,” Managing Director of Neometals, Chris Reed, said.
Manikaran is India’s third largest power trading company. The two companies are expected to share evaluation costs equally and following a successful feasibility analysis a 50:50 joint venture will be considered.
The feasibility analysis is set to take between 18 to 24 months to complete. With the joint venture consideration taking place in the first half of 2021.
Upon a solidified joint venture, Neometals will contribute its life-of-mine Mt Marion project , which is estimated to produce 57,000 tonnes per year of six per cent spodumene concentrate.
Additionally required spodumene for the refinery will be outsourced.
Manikaran will be in charge of obtaining the majority of project funding and securing approvals.
To combat issues with pollution, India is aiming for 100 per cent electric vehicle sales by 2030. Making the lithium refinery potentially prospective as the need for lithium batteries will increase.
Neometals share price currently sits at $0.22 per share, with little movement today.
