Neometals inks MoU with Rio Tinto to advance ELi lithium refining technology

Neometals Ltd (ASX: NMT) has announced the signing of a non-binding Memorandum of Understanding (MoU) with a subsidiary of Rio Tinto, marking a potentially pivotal step forward for its proprietary ELi Process™—a patented technology designed to produce lithium hydroxide from lithium chloride solutions with lower costs and environmental impact.

The agreement has been executed through Reed Advanced Materials Pty Ltd (RAM), the 70:30 joint venture between Neometals and Mineral Resources Ltd (ASX: MIN). RAM holds the rights to the ELi Process and will work alongside Rio Tinto to explore its commercial potential, particularly for use with Rio Tinto’s South American brine resources.

The ELi Process replaces the conventional chemical precipitation route with an electrochemical method using a standard chlor-alkali cell. This approach can significantly reduce the need for bulk reagents like soda ash and lime, offering a pathway to materially lower operating costs. It also positions ELi as a potentially greener alternative, with lower CO₂ emissions due to reduced chemical input and the possibility of integrating renewable electricity.

Under the MoU, the two companies intend to:

• Explore Rio Tinto funding for further optimisation test work and process design updates.

• Establish a framework for field trials to elevate the technology to Technology Readiness Level 7 (TRL 7), which would validate the process in a real-world, industrial setting.

• Negotiate a potential evaluation licence for Rio Tinto to undertake extended testing.

• Potentially enter into a commercial agreement to apply the ELi Process to Rio Tinto's lithium brine assets.

Importantly, the MoU does not create exclusivity nor does it obligate either party to proceed beyond the agreed exploratory phase. However, RAM sees considerable value in the engagement, noting Rio Tinto’s development capabilities and portfolio of Tier 1 energy transition assets.

Chris Reed, Managing Director of Neometals, commented:
“We are naturally excited to collaborate with Rio Tinto to explore the potential to bring this technology closer to market. Rio Tinto is a global leader in energy transition commodities with scale, development capabilities and financial strength. We are confident ELi can be an ideal complement to Rio Tinto’s direct lithium extraction (DLE) technologies to further enhance the value of their Tier 1 portfolio.”

The announcement follows a successful pilot program where RAM tested Rio Tinto’s Rincon brines through a purification stage and a 1,000-hour electrolysis trial during 2023 and 2024. These tests yielded high-purity lithium hydroxide monohydrate (LHM) crystals—an essential precursor for lithium-ion battery cathodes.

Pending further agreement, the next stage of collaboration may involve the design and cost estimation of a demonstration-scale plant in Argentina.

The ELi Process is underpinned by a growing intellectual property portfolio, with 19 granted patents and 14 pending globally. The commercial model is focused on licensing, with Neometals aiming to derive royalties and provide technical support to project partners.

The MoU has an initial term of eight months and may be extended or terminated earlier by mutual agreement. While the path to a binding commercial arrangement remains contingent on successful collaboration and testing, the partnership reflects a measured and strategic alignment between a technology developer and a major lithium market participant.