/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED
STATES/
Transaction highlights include:
- Primobius GmbH is a 50:50 joint-venture of leading
steelmaking equipment manufacturer SMS group GmbH and Neometals Ltd
(ASX: NMT), an Australian specialty metals company
- Stelco plans to secure end-of-life electric vehicles to
source scrap steel feedstocks and recycle lithium-ion batteries in
a proposed 20,000-net ton per annum integrated operation at Lake
Erie Works
- Will produce up to 18,400 net tons per annum of nickel,
manganese and cobalt sulphates, lithium hydroxide and carbonate,
and up to 40,000 net tons of steel scrap
- Internally generated scrap will reach over 25% of Stelco's
steel scrap requirements
- Primobius will issue a license to Stelco and hold an option
to acquire 25%–50% of the venture
- Initial operations targeted for 2023
- Technology currently commissioned at 4,000-net ton per annum
facility in Hilchenbach, Germany
HAMILTON, ON, Dec. 31, 2021 /CNW/ - Stelco Holdings Inc. (TSX:
STLC) ("Stelco" or the "Company") announced today
that it has executed binding licensing and option agreements with
Primobius GmbH ("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%
and 50% 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 become a leading lithium-ion battery recycler in North America, producing 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.
Capital costs of the plant will ultimately be based on detailed
engineering studies expected to be completed in mid-2022 and are
not expected to be material for the initial planning and
development stages.
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."
Kestenbaum continued, "By providing this service, Stelco will be
able to recycle end-of-life electric vehicles, convert them into
green steel and recover from their batteries high purity metals
such as lithium, nickel, cobalt and manganese. The synergies
obtained by joining the leading engineering company in the world
with the leading battery metals technology company and with our
state-of-the-art steelmaking capabilities position Stelco as the
best-in-class partner to automotive OEMs, particularly those
pursuing electric vehicle strategies."
About Stelco
Stelco is a low cost, integrated and independent steelmaker with
one of the newest and most technologically advanced integrated
steelmaking facilities in North
America. Stelco produces flat-rolled value-added steels,
including premium-quality coated, cold-rolled and hot-rolled sheet
products, as well as pig iron and metallurgical coke. With
first-rate gauge, crown, and shape control, as well as uniform
through-coil mechanical properties, our steel products are supplied
to customers in the construction, automotive, energy, appliance,
and pipe and tube industries across Canada and the
United States as well as to a variety of steel service
centres, which are distributors of steel products. At Stelco, we
understand the importance of our business reflecting the
communities we serve and are committed to diversity and inclusion
as a core part of our workplace culture, in part, through active
participation in the BlackNorth Initiative.
Forward-Looking Information
This press release contains "forward-looking information" within
the meaning of applicable Canadian securities laws. Forward-looking
information may relate to our future outlook and anticipated events
or results and may include information regarding our financial
position, business strategy, growth strategy, budgets, operations,
financial results, taxes, dividend policy, plans and objectives.
Particularly, information regarding our expectations of future
results, performance, achievements, prospects or opportunities is
forward-looking information. In some cases, forward-looking
information can be identified by the use of forward-looking
terminology such as "plans", "targets", "expects" or "does not
expect", "is expected", "an opportunity exists", "budget",
"scheduled", "estimates", "outlook", "forecasts", "projection",
"prospects", "strategy", "intends", "anticipates", "does not
anticipate", "believes", or variations of such words and phrases or
state that certain actions, events or results "may", "could",
"would", "might", "will", "will be taken", "occur" or "be
achieved". In addition, any statements that refer to expectations,
intentions, projections or other characterizations of future events
or circumstances contain forward-looking information. Statements
containing forward-looking information are not historical facts but
instead represent management's expectations, estimates and
projections regarding future events or circumstances. These
statements include, without limitation, statements regarding
Stelco's ability to become a leading lithium-ion battery recycler
in North America; expectations
that Stelco will be able to meet the need for large recycling
facilities to manage significant anticipated volumes from
end-of-life electric vehicle batteries; that synergies will be
obtained by joining with Primobius and its affiliates; expectations
regarding production capacity and scrap steel quantities generated
from the production plant; expectations regarding the initial
capital costs expectations that Stelco will be positioned to be the
best-in-class to partner with automotive OEMs pursing electric
vehicle strategies.
Undue reliance should not be placed on forward-looking
information. The forward-looking information in this press release
is based on our opinions, estimates and assumptions in light of our
experience and perception of historical trends, current conditions
and expected future developments, as well as other factors that we
currently believe are appropriate and reasonable in the
circumstances. Despite a careful process to prepare and review the
forward-looking information, there can be no assurance that the
underlying opinions, estimates and assumptions will prove to be
correct. Certain assumptions in respect of: the utilization of and
access to our production capacity; capital expenditures associated
with accessing such production capacity; the impact of COVID-19 on
our business and the broader market in which we operate; the
market's ability to recover from COVID-19; upgrades to our
facilities and equipment; our research and development activities
associated with advanced steel grades; our ability to source raw
materials and other inputs; our ability to supply to new customers
and markets; our ability to effectively manage costs; our ability
to attract and retain key personnel and skilled labour; our ability
to obtain and maintain existing financing on acceptable terms;
currency exchange and interest rates; the impact of competition;
changes in laws, rules, and regulations, including international
trade regulations; and growth in steel markets and industry trends
are material factors made in preparing the forward-looking
information and management's expectations contained in this press
release.
Key Assumptions Underlying the Shredding and
Hydrometallurgical Refinery Facility Production Estimates
The estimated production volumes associated with the shredding
and hydrometallurgical refinery facility proposed for Lake Erie
Works included in this press release are based on a number of
assumptions, including, but not limited to, the following material
assumptions: expectations that third party contractors and
suppliers will deliver, construct and perform in accordance with
agreed upon design plans and plant engineering reports;
expectations Stelco will be able to procure and obtain sufficient
quantities and quality of end-of-life vehicles to fully-utilize the
facility's design capacity; our ability to obtain any applicable
regulatory approvals and permits required in connection with
operating the facility; expectations that, upon completion, the
facility will produce in accordance with anticipated design
capacity; expectations that the market for electric vehicles and
steel products does not experience a material adverse change
subsequent to the completion of the facility; expectations that our
customers will continue to purchase material volumes of production
outputs upon completion of the project; expectation that the
facility will produce sufficient quality grades of battery metals
following completion of the refining process; and expectations that
we will fully realize current and future production levels at our
facility.
There can be no assurance that such information will prove to be
accurate, as actual results and future events could differ
materially from those anticipated in such information. Accordingly,
readers should not place undue reliance on forward looking
information, which speaks only as of the date made. The
forward-looking information contained in this press release
represents our expectations as of the date of this news release and
are subject to change after such date. Stelco disclaims any
intention or obligation or undertaking to update publicly or revise
any forward-looking statements, whether written or oral, whether as
a result of new information, future events or otherwise, except as
required by law.
SOURCE Stelco