Stelco Holdings has executed binding licensing and option agreements with Primobius to commercialize Primobius's proprietary advanced electric vehicle battery recycling and processing technologies in North America.
The licensing agreement will enable Stelco to advance commercial lithium-ion battery feedstock sourcing agreements and commence engineering and approvals processes. The option agreement grants Primobius the right to acquire between 25 percent and 50 percent equity in Stelco's wholly-owned subsidiary performing these activities. If not exercised by Primobius, Stelco will have the exclusive rights to utilize Primobius's proprietary technology in Canada, the United States and Mexico to recycle lithium-ion batteries removed from end-of-life electric vehicles, and Primobius will be entitled to a gross revenue royalty.
The proposed 20,000-net ton per annum integrated shredding and hydrometallurgical refinery at Lake Erie Works will enable Stelco to produce up to 18,400 net tons per annum of nickel, manganese and cobalt sulphates, and lithium hydroxide and carbonate, and is also expected to generate up to 40,000 net tons per annum of scrap steel that will be recycled into Stelco's steelmaking operations. The plant will help meet the need for multiple large recycling facilities to manage significant anticipated volumes from end-of-life electric vehicle batteries originating from the world's fastest growing cell-making region and provide Stelco with the opportunity to build additional processing facilities across North America.
Stelco Executive Chairman and Chief Executive Officer, Alan Kestenbaum said: "Stelco is thrilled to partner with Primobius. After an extensive search for best-in-class technologies worldwide, including a detailed review of Primobius's newly commissioned and operational demonstration plant in Hilchenbach, Germany, on the premises of leading engineering firm SMS, Stelco has reached an agreement that will enable Stelco to create a closed loop system of auto recycling and provision of green steel and battery metals back to its automotive OEM customers. With this novel approach, Stelco is uniquely positioned to provide the highest quality automotive steels available in North America as well as a greater value proposition to its customers."
