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Highlights

  • Reed Advanced Materials (RAM), a Neometals and Mineral Resources JV, has signed a non-binding MoU with Rio Tinto to explore the potential validation of ELi Process™ Technology.

  • The collaboration may include test work, pilot-scale design, and extended trials to assess the application of ELi to Rio Tinto’s lithium brine assets.

  • ELi offers a cost-effective alternative to conventional lithium processing by using electrolysis to produce lithium hydroxide with reduced chemical input.

Neometals Ltd (ASX:NMT) and Mineral Resources Ltd (ASX:MIN) have announced that their 70:30 joint venture, Reed Advanced Materials Pty Ltd (RAM), has signed a non-binding Memorandum of Understanding (MoU) with Rio Tinto, via its subsidiary Livent USA Corp., to explore potential collaboration on RAM’s proprietary ELi Process™ Technology.

The ELi technology is designed to convert lithium chloride solutions into high-purity lithium hydroxide using electrolysis in a standard chlor-alkali cell, offering a potential reduction in operating costs by minimising the use of bulk reagents typically required in the chemical precipitation method.

Collaborative Intent and Next Steps

The MoU outlines Rio Tinto and RAM’s shared intention to evaluate ELi through optimisation test work, process design updates, and the potential development of a pilot or demonstration-scale plant. This may be pursued in Argentina, pending further agreement.

As part of the collaboration, Rio Tinto may also consider funding test work and engineering activities required to validate the technology. The scope could include extended testing to reach Technology Readiness Level 7, as well as discussions around evaluation licensing and potential field trials.

Although the MoU is non-binding (excluding provisions on confidentiality and intellectual property), RAM acknowledged the significance of Rio Tinto’s interest in executing the agreement. The MoU will remain in effect for eight months unless extended or terminated earlier.

Successful Trials and Potential Impact

RAM previously conducted successful purification and electrolysis pilot trials of Rio Tinto’s Rincon brines during 2023 and 2024, producing high-purity lithium hydroxide monohydrate crystals. These early results highlight the commercial potential of the ELi process in real-world applications.

If subsequent evaluations prove favourable, the collaboration could progress to a more formal commercial agreement and the potential integration of ELi across Rio Tinto’s existing or future lithium brine assets.

Market Response

Following the announcement, Neometals’ share price rose by 7.25% to AUD 7.4 cents per share in morning trading on 26 June 2025.