Neometals (ASX:NMT) has announced a purchase order for a Mercedes-Benz battery recycling plant.

The recycling plant installation is scheduled to commence in the fourth quarter of 2023, immediately following the completion of the building.

The facility, which is expected to have an annual capacity of 2,500 tonnes, is aiming to recover materials that will be reused in the production of a targeted 50,000 battery modules for new Mercedes vehicles.

Primobius GmbH, which received the purchase order, expects to supply a daily 10-ton spoke with Mercedes.

Primobius is wrapping up FEED activities for an integrated Mercedes LIB recycling plant and expects an additional HUB purchase order in September 2023.

Furthermore, the spoke installation is planned to commence in the fourth quarter of 2023, with commissioning set to commence in the first quarter of 2024.

Neometals is a company focused on developing metals for modern needs, including lithium batteries for electric vehicles.