Recyclus secures largest contract with global OEM

Technology Minerals Plc (LSE: MNTL), the UK-listed company focused on building national resource and manufacturing resilience which trades as Mantle, is pleased to announce that its 48.35% owned subsidiary, Recyclus Group (“Recyclus”), has secured a three-year agreement to recycle lithium-ion (“Li-ion”) batteries from a global automotive original equipment manufacturer (the “Customer”). The contract nearly doubles Recyclus’ volumes with a corresponding increase in revenue.

Under the terms of this take-or-pay contract, Recyclus will process the Customer’s electric vehicle Li-ion battery packs at its Wolverhampton industrial-scale facility. Recyclus will receive gate fees for the batteries, together with revenues from the sale of black mass and other recovered materials.

The three-year agreement includes a mutual break clause exercisable at 18 months. The contract is expected to take Recyclus closer to full capacity at its Wolverhampton facility.

A milestone for Recyclus

This is Recyclus’ largest contract both in terms of volume and revenue to date . It represents a significant validation of its business model and technology by a global OEM. The contract also marks a shift from predominantly purchase order-based work towards more predictable, contracted volumes, providing the foundation from which Recyclus could scale from a nationally relevant capability to a nationally dominant one.

Together with existing customer activity at current levels, the contract is expected to bring the Wolverhampton facility close to its current capacity. The contract is also expected to enable Recyclus to achieve consistent profitability before the end of the current financial year, supporting further growth and customer acquisition.

Implications for Mantle

The contract strengthens the value of Mantle’s investment in Recyclus and provides further evidence of the commercial traction being achieved across the Group’s operating businesses. It also supports the Group’s broader strategy of developing and scaling sovereign capabilities, reducing reliance on external supply chains and contributing to the UK’s critical minerals and supply chain resilience objectives.

Alex Stanbury, Chief Executive Officer of Technology Minerals and Director of Recyclus, said:

“This contract is a defining milestone for Recyclus. It is the largest we have secured, it comes from a global OEM, and it gives us the contracted base we need to move from project work to a scalable, nationally relevant recycling capability. It is a strong endorsement of both our technology and our ability to deliver at commercial scale, and provides an important foundation from which to build further customer relationships and long-term growth. This agreement is the result of a relationship built over time on reliability and service. We look forward to deepening this partnership.”

Nicholas Bridle, Chief Operating Officer of Technology Minerals, said:

“This contract is an example of the foundation we set out to build. A global OEM committing contracted volume to a UK industrial-scale recycler shows that sovereign capability can be built, owned and scaled as an operating business. It turns capability into cash flow, shortens a critical supply chain, and gives the Group a clear path from single site to a nationally relevant capability. It is the model working. The team at Recyclus are to be congratulated on this important milestone.”

Recyclus Group Ltd