Hannans : Binding Agreement to Recycle Lithium Batteries

30 November 2021

Binding Agreement to Recycle Lithium Batteries in the Nordics

• Hannans signed Memorandum of Understanding (MoU) to commercialise lithium battery recycling technology in Norway, Sweden, Denmark, and Finland1.
• All conditions precedent have now been satisfied, the MoU has been converted to a binding agreement and Hannans officially enters the lithium battery recycling sector.
• Hannans focus turns to securing lithium battery feedstock agreements with Nordic based companies requiring a recycling solution for scrap and end-of-life lithium batteries.

Hannans Ltd (ASX: HNR) has entered to the lithium battery recycling sector by converting a conditional MoU into a binding agreement to recover high purity metals from scrap and end-of-life lithium batteries in Norway, Sweden, Denmark, and Finland (Nordics).

The Nordics has one of the highest EV penetration rates in the world and further has four Giga factories in planning and construction2. The volume of scrap and end-of-life lithium batteries available for recycling in the Nordics will underpin a vibrant lithium battery recycling sector into the future.

From an environmental perspective the recovery of metals from scrap and end-of-life lithium batteries is imperative because the volumes of flammable toxic scrap and spent lithium batteries are forecast to grow exponentially. Importantly the growing volumes of scrap and end-of-life batteries contain significant nickel, cobalt, lithium, and manganese. The recycling technology to be commercialised by Hannans in the Nordics unlocks that embedded value.

Background

Hannans signed a conditional MoU with Critical Metals Ltd3 on 9 September 2021 providing Hannans with rights to recover high purity metals from scrap and spent lithium batteries. The recycling technology is considered safe, sustainable, low energy and low CO2 when compared to incumbent technologies. Hannans can start earning its interest in the recycling projects by funding and managing certain tasks and activities. The conditions precedent to the formation of a binding agreement were:

1. approval by the Critical Metals Board and shareholders;
2. approval by the Hannans Board and shareholders; and
3. completion of a $5 Million capital raising by Hannans before 31 December 2021.

This announcement has been authorised for release by Damian Hicks, Executive Director.

Best regards,

Damian Hicks

Executive Director

1. Refer ASX release dated 9 September 2021
2. Northvolt, Freyr (2) and Morrow
3. criticalmetals.eu

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