The proposed acquisition is part of Technology Minerals' plans to create a circular economy for battery metals within one group. It adds that it is working towards extracting raw materials required for Li-ion battery cathodes, whilst solving the ecological issue of spent Li-ion batteries, by recycling them for reuse by battery manufacturers
Technology MInerals says Recyclus is well positioned to take advantage of the growing demand for Li-ion and lead-acid batteries through retrieval, recycling, and repurposing of used batteries.
James Cable, chief financial officer of Technology Minerals, said: “The combination of the two businesses offers a differentiated, IP protected exposure to battery processing, aligning the enlarged business with the energy transition taking place and the circular economy. Our plan is to expand its commercial footprint in the UK and also the EU and US markets where we see the prospect for growth in line with the exponential growth in the electric vehicle markets and other battery-based sectors."
The combination of the two businesses is planned to offer a differentiated, IP protected exposure to battery processing, aligning the enlarged business with the energy transition taking place and the circular economy.
The primary revenue stream is expected to be direct sales of recovered materials, driving a cashflow and value chain lock-in to support leadership positioning. Other revenue generating opportunities include finite material extraction and battery reuse.
The directors of Technology Minerals believe there is an estimated US$6bn opportunity from lithium battery recoverable materials by 2030, and US$45bn second-life battery applications market.
Recyclus plans to open ten battery recycling plants, five Li-ion and five lead-acid, over the next six years, with the first two expected to open in the UK once final EA approval comes through.
Recyclus’ first Li-ion recycling plant is located in Wolverhampton, West Midlands, and is capable of recycling 8,300 tonnes of Li-ion per year. Using UK manufactured technology and physical separation processes, Recyclus is able to accept the five key lithium-ion chemistries, for recycling and processing into ‘black mass’.
The first lead-acid plant, located in Tipton, West Midlands, is capable of recycling 16,000 tonnes in the first full year of production. The Environment Agency has awarded Recyclus an environmental permit at the Tipton plant, allowing for on-site treatment and processing of lead-acid batteries, providing the critical legal foundation to complete the sub-licences and enable full scale automated operations to commence.
In addition, Recyclus recently received a UN-standard certification for its industry-leading Halo battery boxes for the transportation of Li-ion batteries, opening a new revenue stream in domestic and international markets.
The proposed transaction, if completed, will result in the shareholders of Recyclus having a significant minority interest in the enlarged group.
The acquisition is subject to formal shareholder approval by the Technology MInerals' shareholders at a forthcoming General Meeting. The company currently expects the Proposed Transaction to complete at the December AGM.