Neometals Ltd. announced that it has executed a binding memorandum of understanding ("MoU") with SMS Group GmbH ("SMS"), to jointly fund and evaluate the next stage of development work on the proprietary Neometals lithium-ion battery ("LIB") recycling technology ("Recycling Technology"). Neometals has agreed to grant SMS an exclusive due diligence period to evaluate the results of Neometals' Pilot Trial (which is currently in its final stages in Canada), after which point the parties propose to form a 50:50 incorporated joint venture ("JV") to commercialise the Recycling Technology. Activities include the design, manufacture and operation of a circa2 tonne per day demonstration-scale plant at SMS sites in Germany and Austria. The demonstration test-work will run in parallel with an engineering cost study to generate operating and capital cost estimates and market evaluation (collectively "JV Commercialisation Activities"). All Commercialisation Activity costs will be shared equally. Upon successful completion of the Commercialisation Activities, a final investment decision ("FID") will be considered by the JV to construct its first commercial-scale LIB recycling plant. A positive FID would see Neometals contributing its technical and commercial know-how to the venture, including transfer of the Recycling Technology to the JV. SMS would contribute to the engineering design, fabrication, operation and maintenance of future recycling plants. SMS will also, on a best endeavours basis, procure debt financing for no less than 50% of the capital expenditure required. The remaining equity required would be contributed equally as would efforts to secure feed supply and offtake arrangements. This MoU provides significant validation of the value of Neometals' proprietary Recycling Technology and innovative business model. Co-developing projects with strong operating and financial partners is a central tenet of Neometals corporate strategy, it allows projects to be exploited expeditiously at their optimal scale to achieve a superior risk-weighted return for its shareholders.