Hannans – Expansion of lithium battery recycling footprint to major European EV markets.
Hannans Ltd (ASX: HNR) (Hannans or the Company) advise it has executed a heads of agreement (Greenhouse Agreement) with private company Greenhouse Investments Ltd (Greenhouse) effectively granting Hannans the right to enter the lithium battery (LiB) recycling markets in the United Kingdom, Ireland, Italy, and the Balkans (Greenhouse Transaction).
In addition, Hannans has secured Greenhouse’s market intelligence and relationships in these regions.
The Greenhouse Agreement more than doubles Hannans addressable market for scrap and end-of-life batteries.
Late 2021 Hannans executed an agreement with Critical Metals Ltd (Critical) providing it with a right tocommercialise a LiB recycling technology in Sweden, Norway, Finland, and Denmark4, and by combining these territories with the United Kingdom, Ireland, Italy, and the Balkans Hannans has established tremendous leverage to the rapidly growing European LiB recycling sector, and specifically countries with the highest penetration rate of electric vehicles.
Damian Hicks, Executive Director of Hannans said:
We are extremely pleased to deliver this increase in size and scope of our recycling opportunity for Hannans shareholders.
“It is abundantly clear that Europe needs a scalable, safe, and sustainable, lithium battery recycling solution. We believe the technology we will hold sublicences to will help stakeholders in our licenced jurisdictions meet their circular economy ambitions and legal obligations to recycle.”
“We are now focused on increasing Hannans business development activities and forming long-term mutually beneficial relationships with the European lithium battery supply chain participants.”
Transaction Background
The background to the Greenhouse Agreement is that Greenhouse holds a non-exclusive license in the UK and Ireland, and an exclusive license in Italy and the Balkans, for a base lithium battery recycling technology.
Greenhouse has agreed to grant Hannans a sub-license to commercialise the base technology in the UK and Ireland.
Responsibility for the carriage of business in the UK and Ireland will now rest with Hannans. In addition, Greenhouse has granted Hannans the sole and exclusive right (but not the obligation) to fund all LiB recycling projects potentially developed by Greenhouse in Italy and the Balkans in the future.
The consideration for funding each project will be equity in the project, to be negotiated on a case-by-case basis at arms-length. The agreement with Greenhouse remains subject to the satisfaction of the conditions precedent set out in further
detail below.
UK, Ireland, Italy, and the Balkans
There are currently seven LiB factories planned for construction in the UK, Italy, and the Balkans.
7 These territories are forecast to have more than 30,000t 8 of end-of-life batteries available for recycling by 2030.
Greenhouse has been actively seeking to establish relationships with potential suppliers of battery feedstock in these countries and will pass to Hannans the benefit of these relationships, discussions, and initiatives.
By way of example, Greenhouse recently executed a memorandum of understanding (MoU) with a
wholly owned subsidiary of leading south-eastern European steel scrap recycler and green steel
Highlights:
- Hannans executes Heads of Agreement with Greenhouse Investments Ltd providing Hannans with right to expand its lithium battery recycling commercialisation activities into the United Kingdom, Ireland, Italy, and the Balkans.
- Hannans sub-licenses and rights now cover territories incorporating 49% of the population of the EU271 and 38% of all motor vehicles registered in the EU2 giving it tremendous leverage to the rapidly growing European LiB recycling sector, and specifically countries with the highest penetration rate of electric vehicles.
- Hannans focus turns to securing lithium battery feedstock agreements with companies requiring a recycling solution for scrap and end-of-life lithium batteries in compliance with EU battery regulations.
- Hannans to raise up to $3.5M at 3.5 cents per share to fund activities in the new territories.
Expansion of lithium battery recycling footprint to major European EV markets, February 1, 2022
