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American Manganese launches pilot plant optimization tests in bid to increase capacity and reduce costs

Earlier in May, the group reported that Kemetco had come up with a plant layout for the first commercial-scale plant

American Manganese Inc. -
The process extracts from spent batteries, cathode materials such as lithium, cobalt, nickel and manganese at battery-grade purity

American Manganese Inc (CVE:AMY) (OTCPINK:AMYZF) is continuing to advance its ground-breaking recycling technology and on Wednesday announced the launch of optimization tests in a bid to upgrade its pilot plant.

The news comes after the firm revealed earlier in May that its contractor Kemetco had come up with a plant layout for the first commercial-scale plant.

READ: American Manganese says contractor Kemetco comes up with conceptual layout for commercial recycling plant

The process extracts, from spent batteries, cathode materials such as lithium, cobalt, nickel and manganese at battery-grade purity. The firm says the process involves minimal steps, ensuring a high-grade, low-cost output.

"When we first commissioned the pilot plant project, we were interested in successfully scaling up our patented recycling process, which I believe we have demonstrated," Larry Reaugh, the CEO of American Manganese said in a statement.

"We are now using this opportune time to determine the optimal processing limits and potential cost savings for our future commercial recycling plant."

Kemetco Research is undertaking the tests, which are focused on upgrading and perhaps doubling the processing capacity of lithium-ion battery cathode scrap material from the pilot plant's current baseline capacity of 64 kg per day, the group said.

Kemetco wants to determine optimal processing capacity without sacrificing the recovery potential of cobalt, lithium, nickel, manganese and aluminum. The optimization tests are expected to take several weeks and the findings will be incorporated into the recently announced conceptual commercial plant layout.

Notably, American Manganese said that by improving and increasing processing capacity, it expects to decrease the cost of future commercial recycling plants.

American Manganese wants to commercialize its technology via licensing or joint venture agreements and plans to locate the recycling plant in a strategic location within North America. There the group will prepare recycled products suitable for battery manufacturing.

The firm also provided a video in which Norman Chow, the president of Kemetco Research, explains the latest pilot plant tests: See below:

Quick facts: American Manganese Inc.

Price: 0.21 CAD

Market: TSX-V
Market Cap: $39.57 m

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