Slide 1: Battery Recycling Without Limits
BATTERY RECYCLING WITHOUT LIMITS Corporate Presentation, LiB Recycling August 2020 ASX Code: NMT OTC/Nasdaq Intl: RDRUY
Slide 2: Disclaimer
DISCLAIMER Summary information: This document has been prepared by Neometals Ltd (“Neometals” or “the Company”) to provide summary information about the Company and its associated entities and their activities current as at the date of this document. The information contained in this document is of
Slide 3: Executive Summary
Executive Summary The need for LiB recycling The Opportunity The Neometals’ Solution The Business Case Supporting Documents 3
Slide 4: Neometals is a project developer
• Neometals (ASX:NMT) is a project developer with strategic focus on minerals / materials critical to the EV and ESS sectors • Four core projects are under evaluation with strong partners • Pivoting towards responsible materials recovery v. upstream mining projects • JV to scale-up battery recycling
Slide 5: Our Strategy for Growth
OUR STRATEGY FOR GROWTH Neometals’ uses a different early-partnering model to maximise ROIC Identify Build Validate and Return and secure Value realise value value opportunities Organically and through Risk-conscious exploration, Partner to reduce Opex and Dividends and acquisition. E.g. battery cos
Slide 6: Projects
PROJECTS Lithium-Ion Battery Lithium Refinery Barrambie Titanium SSAB By-product Recycling Project Project and Vanadium Project Vanadium Recovery Sustainable process aiming to recover +90% of lithium battery contents. Demo showcase stage, Feasibility Stage, MOU Pilot-stage, 100% NMT, 50:50 JV evalua
Slide 7: The Need for LiB Recycling
THE NEED FOR LIB RECYCLING Hazardous Valuable Carbon Footprint 7
Slide 8: The Growing Demand for Li-ion Batteries
THE GROWING DEMAND FOR LI-ION BATTERIES Schematic of Lithium-ion Battery & Average Compostion of Components o Over the last ten years, Li-ion Batteries (LiBs) have moved from Positive terminal Composition obscurity to wide-spread Cover Lithium-ion battery component (% by weight) popularity Insulatin
Slide 9: Recycling Is Not Optional
RECYCLING IS NOT OPTIONAL LiBs pose many risks including: Fire Risk Pollution (GHG) Landfill Material Circular Shortages Economy These risks have As a result, many EU Battery EOL vehicle Mandatory led to concerns countries have Directive – directive – more recycling in over the storage, imposed recy
Slide 10: Reducing the Level of Hazardous Material
REDUCING THE LEVEL OF HAZARDOUS MATERIAL >15MT Discarded LiB from 2020-30 o Expired LiBs are growing in volume. o Small % of LiBs are currently being recycled. o Combustible and hazardous content at risk of being dumped into landfill. o Incumbent recycling technology sees most of the valuable ingred
Slide 11: Spent LiBs Are Valuable
SPENT LIBS ARE VALUABLE Expired LiBs are made up of valuable raw materials that can be recovered and re-used EV Battery Cathode Market Share NMC 811 Value Forecast Source: Dartan Commodities; Argus Source: Vale and LME & Metalary.com pricing as at 18th June 2020 11
Slide 12: Recycling Is the Key to Securing the Supply Chain
RECYCLING IS THE KEY TO SECURING THE SUPPLY CHAIN World Lithium ion battery Mega factory impact on raw materials mega- factory capacity 2020- Raw Materials demand vs Global 2028 Lithium Ion cell/mega-factory capacity Source: Benchmark Minerals Intelligence The data in this chart does not constitute
Slide 13: Recycling Is the Key to Securing an Ethical Supply
RECYCLING IS THE KEY TO SECURING AN ETHICAL SUPPLY “Recycling plays pivotal role in securing battery supply chains…the region that leads battery technology and secures the supply chain will have outsized geo-economic and development influence.” Science Magazine Oct 2019 13
Slide 14: Hydro-Recovery Recycling Has the Lowest Carbon Footprint
HYDRO-RECOVERY RECYCLING HAS THE LOWEST CARBON FOOTPRINT Raw Material CO2 Savings – Traditional Mining vs Pyromet and Hydromet Battery Recycling o Comparisons between ICE and EV emissions are complex. o EV recharging with coal powered electrons doesn’t provide clear emissions advantage. To ensure EV
Slide 15: The Opportunity
THE OPPORTUNITY Market Low Government Tailwind Carbon Support 15
Slide 16: Tailwinds - Trend Towards De-carbonisation Driving Demand
TAILWINDS - THE TREND TOWARDS DE-CARBONISATION IS DRIVING DEMAND FOR LIBS Demand and adoption of EV and ESS increases as the economics of de-carbonisation becomes more viable o Paris Agreement target o EU Green deal – One trillion Euro of investment between 2021- 2027 to achieve no net emissions of
Slide 17: EV Demand Growth Forecast
1. EV DEMAND GROWTH FORECAST Global EV Sales and Penetration Rate Forecast, 2020-35 Source: rho motion 17
Slide 18: EV Demand Growth Drivers
1. EV DEMAND GROWTH DRIVERS The decline in battery production costs means the mass market will begin to drive demand. Electric Vehicle Sales Driven by Economics Source: BloombergNEF Source: ARK Innovation – Big ideas 2020 18
Slide 19: EV Demand Growth Drivers Cont'd
1. EV DEMAND GROWTH DRIVERS CONT’D Europe Government support is the other main driver of growth Source: techau.com.au/eu-may-exempt-electric-vehicles- Source: elecrive.com/2020/06/04/Germany-doubles- from-vat-should-Australia-remove-the-gst-and-lct/ ev-subsidies-no-more-diesal-support 19
Slide 20: European EV Supply Growth Drivers
1. EUROPEAN EV SUPPLY GROWTH DRIVERS o Over the coming years, European manufacturers are going to struggle to reduce their CO2 emissions. If they fail, they run the risk of expensive fines. o Companies such as VW are attempting to reach these emission standards by increasing their demand for EVs. Se
Slide 21: LiB Demand Growth Forecast
2. LIB DEMAND GROWTH FORECAST Demand of EV and ESS means higher demand for batteries Lithium-Ion Total Demand (GWh) Source: Argus 21
Slide 22: LiB Supply Sources
3. LIB SUPPLY SOURCES Global Megafactory Capacity Forecast by Region Source: Benchmark Mineral Intelligence 22
Slide 23: More Production = More Scrap and End of Life LiBs
MORE PRODUCTION = MORE SCRAP AND END OF LIFE LIB’S European Lithium Ion Battery Recycling Feed Source: Benchmark Minerals Intelligence (Battery Cell Capacity) and Neometals Management (Utilisation rate 75%, Scrap Rate 10% and Cell Weight 45g/Wh) 23
Slide 24: Who Will Process Them?
WHO WILL PROCESS THEM? Major European EV Battery Recycling Facility Capacities Primobius Stage 2 Plant 200,000t (Lag End Of Life Cells) Primobius Stage 1 Plant 20,000t (Leed Production Scrap) Source: Benchmark Minerals Intelligence 24
Slide 25: Our Unique Solution
OUR UNIQUE SOLUTION Safe Eco-friendly Pure 25
Slide 26: Our Unique Sustainable Recycling Technology
OUR UNIQUE SUSTAINABLE RECYCLING TECHNOLOGY Stage 1 Prismatic Shredding LCO/NMC Battery feed Pouch Plastics Black powder Metal Foil Cu, Al Cylindrical Cathode Materials Ni, Co, Mn Stage 2 Lithium Refining 2nd Life Anode 26
Slide 27: Our Process
OUR PROCESS Responsibly recovered materials to complement traditional mining. What we Business Feed Development Next Why have Model (resource) Stage Steps We have a LIB demand growth Partner to secure Initially production 3yrs of development Construct continuous proprietary and creating challenge fe
Slide 28: Primobius in the Value Chain
PRIMOBIUS IN THE VALUE CHAIN Type Value Chain for Automotive LiBs Refined Chemical Electrode Preparation Products (product mixing + LiOH) Production scrap Mined Cell Production Raw Materials Production scrap Recycling LiB Module Assembly with BMS Production scrap Certified Waste Collector Pack Produ
Slide 29: Our Competitive Advantage (USP)
OUR COMPETITIVE ADVANTAGE (USP) o Our exclusive eco friendly flowsheet o A flexible approach means that o High purity chemical products enables a true closed loop, low CO2 and shredding and refining don’t have to suitable for use in cathode, displaces reduced LCA GHG emissions. be co-located. need t
Slide 30: Our Joint Venture with SMS Group
OUR JOINT VENTURE WITH SMS GROUP Exclusivity with SMS to form 50:50* JV • Incorporation of European JV Co (Primobius) to commercialise NMT R&D • Our joint venture will construct a showcase demonstration plant in Germany and complete feasibility study • Evaluating both 20ktpa and 200ktpa plants • SMS
Slide 31: Partnering with SMS Group
PARTNERING WITH SMS GROUP 1. Leading supplier of metallurgical equipment and services Leading Long lasting history of about 150 years as supplier leading supplier of metallurgical equipment and plants 1 2. Experienced scale up partner SMS group has a continuous strategy to develop new business model
Slide 32: European Showcase of Hub & Spoke Model
EUROPEAN SHOWCASE OF HUB & SPOKE MODEL o Feed preparation & refining of vehicle & cell maker scrap at SMS facility in Germany o Provide battery grade chemicals for evaluation by potential off-takers 32
Slide 33: Demonstration Plant (DP)
DEMONSTRATION PLANT (DP) Output from DP to be allocated to SMS and NMT to design, SMS to build selected customers in battery supply and operate on permitted site in chain for qualification Germany Fully-integrated version of pilot MOUs are typical prelude to flowsheet, commercial scale potential off
Slide 34: SMS Manufacturing Centre
SMS MANUFACTURING CENTRE Engineering and production under one roof o SMS production shop covers a total of 40,000 m2 and ranks among the most modern anywhere in the world o Engineering and production under one roof to ensure efficient order processing o Production of core metallurgical and rolling m
Slide 35: Our Indicative Timeline
OUR INDICATIVE TIMELINE Indicative Project Timeline – LiB Recycling Commenced Complete Complete Complete Complete Commence Procurement phase Construction of Demonstration Class 3 ECS Feasibility study and Commercial scale for demonstration demonstration plant Plant Trial Capex & Opex FID* integrated
Slide 36: Investors
INVESTORS Business Value Growth Case Proposition 36
Slide 37: Business Case
BUSINESS CASE Our Joint Venture is an It is a validation of our: Primobius provides a outcome of Neometals’ 1. Business model clear and credible path extensive due diligence to commercialization on our substantive 2. Technical viability, and and cashflow R&D program 3. Size of opportunity 37
Slide 38: Aim Is to Be Recycler of Choice for Carmakers and Cell Makers
AIM IS TO BE RECYCLER OF CHOICE FOR CARMAKERS AND CELL MAKERS Megafactory (35GWh p.a) Stage 2: Feasibility o Production Scrap o Warranty Returns o End-of-Life o (200,000t p.a) “Expect significant economies of Stage 1: Feasibility scale as Primobius moves to Stage 2 o Production Scrap operations and
Slide 39: Value Proposition
VALUE PROPOSITION Scoping Study 20KTPA Recycling plant EV & Consumer Opex feed rate battery feed 50tpd 18,263tpa Products US <$7/lb* Inc. high purity Contained cobalt Co, Ni,Cu,Li excluding co-products Capital Costs Payback Pre tax NPV12 US$66M* <2 years IRR 72% A$92M US$220M* A$308M Please refer to
Slide 40: Macro tailwinds - EV/ESS
Sound business case - industry Recycling generates validation and path to cash- materials without mining risk flow via Primobius. (urban recovery). JV partners with global footprint Strategic source of green / and R&D commercialization ethical non-mine cathode experience. intermediate. Alignment wit