Total
0
Shares
Image Sourced ShutterStock
Market Herald logo

Subscribe

Be the first with the news that moves the market
  • 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.

NMT by the numbers
More From The Market Herald

" Sparc Technologies (ASX:SPN) and University of Adelaide to form hydrogen JV

Sparc Technologies (SPN) and the University of Adelaide (UoA) are set to form a joint venture hydrogen technology company.
Triangle Energy (ASX:TEG) - Managing Director, Robert Towner

" Triangle Energy (ASX:TEG) and Pilot Energy (ASX:PGY) complete Cliff Head crude oil lifting

Triangle Energy and (TEG) and Pilot Energy (PGY) say the Cliff Head Joint Venture (CHJV) has lifted 107,000 barrels (bbls) of Cliff Head
Armour Energy (ASX:AJQ) - CEO, Brad Lingo

" Armour Energy (ASX:AJQ) appoints lead manager for McArthur IPO

Armour Energy (AJQ) has appointed a lead manager for the initial public offering and proposed listing on the ASX of McArthur Oil &
Elixir Energy (ASX:EXR) - Managing Director and CEO, Neil Young

" Elixir (ASX:EXR) flows gas and water to surface in Mongolia

Elixir Energy (EXR) has updated the market on its exploration and appraisal program underway across its Nomgon IX Coal Bed Methane (CBM) Production