ASX-listed companies Neometals and Mineral Resources have announced that their jointly owned entity, Reed Advanced Materials (RAM), has signed a non-binding memorandum of understanding (MoU) with a subsidiary of Rio Tinto to explore the potential validation and future application of the ELi lithium processing technology.

Under the agreement, Rio Tinto and RAM intend to explore opportunities for RAM to complete optimisation testwork and update the process design criteria for a pilot or demonstration-scale plant. Subject to further agreement, the parties may also undertake extended field trials to test ELi in a real-world application.

ELi is a proprietary electrochemical process developed by RAM that uses electricity in a conventional chlor-alkali cell to convert lithium chloride solutions into lithium hydroxide. The process replaces the large volumes of bulk chemical reagents typically used in the conventional chemical precipitation method and, according to the company, has the potential to significantly lower operating costs.

“We are naturally excited to collaborate with Rio Tinto to explore the potential to bring this technology closer to market,” said Neometals MD Chris Reed. “Rio Tinto is a global leader in energy transition commodities with scale, development capabilities and financial strength. We are confident ELi can be an ideal complement to Rio Tinto’s direct lithium extraction technologies to further enhance the value of their Tier 1 portfolio.”

RAM successfully tested Rio Tinto’s Rincon brines in purification and 1 000-hour electrolysis pilot trials in 2023 and 2024, producing high-purity lithium hydroxide monohydrate crystals, the company said.

Next steps under the MoU may include process optimisation, detailed design work, and cost estimation for a demonstration-scale plant in Argentina. The MoU also allows for the possibility of establishing a framework agreement to enable Rio Tinto to assess ELi’s performance through extended testing to Technology Readiness Level 7.

If both parties agree, the collaboration could lead to a binding agreement for field trials and potentially a commercial arrangement for applying ELi to Rio Tinto’s current or future lithium brine assets.