Neometals Starts Vanadium Recovery Project Offtake with Glencore
Perth, Australia - Neometals Ltd (ASX: NMT & AIM: NMT), an emerging sustainable battery materials producer, announced the signing of a binding offtake agreement between Novana Oy and Glencore International AG for the Vanadium Recovery Project ("VRP1"). The agreement secures the guaranteed offtake for 100% of the vanadium products produced by VRP1, highlighting the market demand for high-purity, carbon-neutral vanadium pentoxide ("V2O5") produced in the European Union from EU raw materials.
Neometals owns a 72. 5% stake in Recycling Industries Scandinavia AB ("RISAB"), VRP1's joint venture company. The remaining 27. 5% is held by Critical Metals Ltd. Under the Offtake Agreement, Novana will exclusively sell and deliver to Glencore, and Glencore will purchase and take delivery of, all saleable vanadium-bearing products, including V2O5 and ferrovanadium, produced by Novana for a minimum of 5 years from the commencement date.
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The delivery period will start on 1 January 2026, or an earlier date agreed upon by both parties.
The price payable for the vanadium-bearing products will be tied to the prevailing market-publication. Additionally, Glencore will provide technical expertise during the initial phases of VRP1 development through a joint steering committee. This includes offering advice and insights, given Glencore's vanadium operating experience at the Rhovan Mine in South Africa.
Neometals Managing Director Chris Reed expressed his satisfaction with securing the take-or-pay offtake for 100% of VRP1 vanadium products, as it marks a significant milestone in the company's progress towards a final investment decision (FID) this quarter. Removing volume risk on offtake is a key requirement for securing project finance, and the take-or-pay nature of the Offtake Agreement mitigates this risk with a Tier 1 counterparty in Glencore. The agreement also indicates the anticipated future demand for high-purity materials in the market, supported by the growing demand from the vanadium redox flow battery sector and other potential high-purity applications.
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