The Neometals (ASX:NMT) share price is soaring. Here's why

The Neometals Limited (ASX:NMT) share price has been moving upwards over the month on some recent announcements. We take a look at the latest news.

| More on:
ASX shares buy unstoppable asx share price represented by man in superman cape pointing skyward

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Neometals Ltd (ASX: NMT) share price has been on the move after a flurry of updates last week from the small-cap mineral project developer. 

The company's shares have flown more than 12% today to 28 cents per share, putting the Neometals share price up by 21.74% in just over a week.

The recent gains take Neometals' returns for the year to 40%, excluding dividends.

A second life for lithium

One of Neometals' key projects is its lithium-ion battery recycling joint venture with SMS group and Primobius.

On 21 December Neometals informed the market that the joint venture is making strong progress towards commercialisation of lithium-ion battery recycling in Europe. Construction has been permitted for its German demonstration plant, where the recycling process and performance will be showcased.

In the release, Neometals highlighted that "Primobius goes into its demonstration plant trial with confidence from pilot trial data that the key payables (nickel and cobalt sulphate) are higher purity than required by Chinese national specifications for cathode use."

Neometals also highlighted that it is in discussions with potential 'off-takers' of materials that are recovered during the demonstration trials.

Simplified production

On 22 December, Neometals notified the market that it has established a 'breakthrough' simplified process for separating ilmenite and vanadium-rich magnetite concentrates that meet commercial specifications.

The method reportedly uses 'conventional reduction roasting' and magnetic separation of concentrates. Samples are in transit to the Institute of Multipurpose Utilisation of Mineral Resources Chinese Academy of Geological Sciences in China for validation of the process.

Neometals stated that it has also engaged contractors for an onsite mining and gravity concentrate operation based on this process.

There's more where that came from

Lastly, on 23 December, an update regarding Neometals' Zabel Nickel mineral deposit was released. The company increased its estimates of tonnes and grade to now be 351,000 tonnes at 1.9% nickel.

The new estimates are a result of the ongoing review of historical findings and new data. Neometals plans to undertake future drilling to gather more information before moving towards mining studies.

Tailwinds

The urgency for lithium-ion recycling has been ushered in by new mandates in Europe to recognise such batteries as hazardous waste. As more government regulations are introduced internationally there will be a high demand for a recycling solution.

In addition to that, we're coming into an era of electric vehicles (EV), and demand for these EVs are growing rapidly. Small lithium-ion batteries in our mobile devices are one thing, but soon enough we may have tens of millions of car-sized lithium-ion batteries. These resources are also finite, therefore with time, sourcing the materials to manufacture batteries will become increasingly expensive unless there is the ability to recycle. 

Should you invest $1,000 in Neometals Ltd right now?

Before you buy Neometals Ltd shares, consider this:

Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Neometals Ltd wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

And right now, Scott thinks there are 5 stocks that may be better buys...

See The 5 Stocks *Returns as of 30 April 2025

Motley Fool contributor Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Market News

Rising gold share price represented by a green arrow on piles of gold block.
Gold

3 reasons to buy this surging ASX All Ords gold stock today

The ASX All Ords gold stock has doubled investors’ money in 12 months, and this leading expert forecasts more outperformance…

Read more »

Woman with $50 notes in her hand thinking, symbolising dividends.
Broker Notes

Broker reveals outlook for ASX dividend shares amid volatile market

Peter Gardner from Plato Investment Management tells ASX investors where to look for dividend income this year.

Read more »

Two colleagues at work looking at a tablet and smiling at a rising share price.
Share Gainers

Why Generation Development, Orica, Pro Medicus, and Zip shares are storming higher today

These shares are having a strong session on Thursday. But why?

Read more »

A man sits in despair at his computer with his hands either side of his head, staring into the screen with a pained and anguished look on his face, in a home office setting.
Share Fallers

Why ANZ, Brainchip, Light & Wonder, and Pilbara Minerals shares are falling today

These shares are tumbling on Thursday. But why?

Read more »

A picture of the US Federal Reserve podium for making media announcements.
Share Market News

Why the Fed just left interest rates on hold and what ASX investors can expect next

With the Fed keeping interest rates on hold, when can ASX investors expect the central bank’s next cut?

Read more »

Cropped shot of an attractive young female scientist working on her computer in the laboratory.
Healthcare Shares

Up 114% in a year, why is the Pro Medicus share price leaping higher again on Thursday?

Pro Medicus shares are back in form today and leaping ahead. Here’s why.

Read more »

A railway worker walks along the train tracks in a visi vest and speaking into a walkie talkie.
Share Market News

Are Aurizon shares a buy, hold or sell based on Macquarie's report?

Here’s what this broker has to say about this Industrials stock

Read more »

A man has a surprised and relieved expression on his face. as he raises his hands up to his face in response to the high fluctuations in the Galileo share price today
Broker Notes

Leading broker puts buy rating on Zip shares

Big returns could be on offer for investors according to its analysts.

Read more »