ASX-listed Neometals has commissioned its first lithium battery recycling plant, which will begin commercial processes in the January quarter of 2022.

The plant is located in Hilchenbach, Germany, and has been expanded by JV Primobius, owned equally by Neometals and SMS Group, The Market Herald reported.

Primobius will target partners and customers with direct access to high volumes of production scrap and end-of-life feedstocks.

The JV aims to process 10 tonnes per day, after having expanded its shredding and beneficiation circuit. Primobius' process aims to recover cobalt, nickel, lithium, copper, iron, aluminium, carbon, plastics, and manganese, and turn them into saleable products which can be reused in the battery supply chain.

Primobius said a federal environmental permit is imminent.

Earlier this year, Primobius signed an MoU with Canadian steel manufacturer Stelco. The companies will create a 50-50 joint venture company to process battery cells emanating primarily from scrap and end-of-life vehicles in North America.

Primobius aims to build a 20,000 tons per year recycling plant near Stelco's facilities.