Highlights

  • Neometals shares declined 7.81% to AUD 0.059 on 5 February 2026.
  • The company agreed to extend a non-binding MoU with Rio Tinto by twelve months
  • The MoU extension allows expanded testing and validation of the ELi Process™ technology.
  • The collaboration continues to advance pilot-scale integration with De Nora’s electrolysis systems.
  • The extended framework supports further technical evaluation under real-world operating condition
  • RAM is jointly owned by Neometals and Mineral Resources under a 70:30 structure.

Neometals Ltd (ASX:NMT) shares fell 7.81% to AUD 0.059 on 5 February 2026, despite the company announcing an extension to its Memorandum of Understanding (MoU) with Rio Tinto for its ELi lithium processing technology.

While the update confirmed ongoing collaboration and technical progress, investors appeared underwhelmed by the absence of a binding agreement or near-term commercial milestone, prompting a sell-off in the stock.

MoU Extension Confirmed with Rio Tinto

Neometals, together with Mineral Resources Limited (ASX:MIN), operates Reed Advanced Materials Pty Ltd (RAM), a jointly owned entity with a 70:30 ownership structure. RAM has agreed with Livent USA Corp., a subsidiary of the Rio Tinto Group, to extend the term of their MoU covering collaboration on RAM’s ELi Process™ lithium technology.

The MoU was originally executed on 24 June 2025 for an initial eight-month period. Under the updated terms, the parties have agreed to extend the arrangement by a further twelve months. The extension provides additional time for technical work before any potential progression beyond the existing framework.

Focus on Testing and Process Integration

According to the update, the extended MoU is intended to allow completion of further optimisation and validation activities. This includes additional testing of new lithium brine feedstock sourced from Rio Tinto’s (ASX:RIO) existing brine operations.

The extension also enables the incorporation of Industrie De Nora S.p.A. and its subsidiary, De Nora Permelec Ltd, into the ELi Process™ pilot-scale validation program. This step is aimed at integrating De Nora’s electrolysis equipment into RAM’s processing flowsheet as part of broader pilot work.

Pilot-Scale Validation Activities

RAM and De Nora have recently entered into a separate collaboration agreement to jointly design, construct, and commission a pilot plant. The proposed pilot facility is intended to combine De Nora’s electrolysis system with RAM’s ELi Process™ technology.

The objective of this work is to progress the integrated processing solution toward industrial-scale validation at an end-user site, subject to relevant approvals from Rio Tinto where required. The activities under the MoU continue to focus on technical assessment rather than commercial commitments.

What Investors Should Know?

While the extension lengthens the original validation timeline, it provides additional scope for technical development and integration activities under the collaboration. The MoU continues to operate as a non-binding framework and does not alter existing ownership structures or commercial arrangements between the parties.

Neometals stated that the additional time is intended to support further evaluation and integration work as the parties continue to assess the ELi Process™ under real-world operating conditions.