Lithium Australia Limited’s (ASX: LIT) wholly-owned subsidiary Envirostream Australia Pty Ltd has executed an agreement with LG Energy Solution (LGES) for the processing of a minimum of 250 tonnes of lithium-ion batteries (LIBs).
250t equates to over 5,000 energy storage systems.
Under the terms of the Agreement, LGES will deliver the LIBs to Envirostream’s facilities in Melbourne, Australia, for processing.
Envirostream recycles more than 90% of a lithium-ion battery into its core components which includes steel, copper, aluminium and most significantly the critical battery metals which are amalgamated into a mixed metal dust (MMD).
The recovered MMD allows the active metals to be repurposed into new lithium-ion batteries anode and cathode powders.
The material terms of the Agreement are summarised at the end of this announcement. The relationship between Envirostream and LGES commenced in 2018, with Envirostream recycling more than 85t of their batteries to date under previously executed agreements.
The minimum 250t volume of LIBs will be processed under the new terms defined within the Agreement.
The signing of this Agreement enables Envirostream to receive additional LGES battery volumes and commence the safe recycling of these batteries with immediate effect.
Envirostream is seeking to obtain similar recycling agreements with other cell and battery manufacturers and will keep the market informed as matters progress.
Battery collection volumes at Envirostream during FY20221 totalled approximately 1,086t.
The additional 250t from LGES represent 23% of FY2022 collections. The Company expects a significant increase in processing volumes for FY2023 relative to FY2022 as a result of this Agreement.
Since the end of FY2022, Envirostream has observed continued increases in collection volumes. Approximately 100t of batteries were collected in July 2022, higher than that achieved in June 2022 (94t) and May 2022 (90t). A monthly collection rate of 100t equates to an annualised rate of 1,200 tonnes per annum (tpa).
In addition to volumes delivered to Envirostream under the Agreement, the recently announced agreement with Battery World2 is expected to increase volumes further.
“Envirostream is leading the battery recycling industry in Australia. LGES share our aspirations of an ethical and sustainable future for the global battery industry,” Envirostream General Manager, Andrew Mackenzie, said. “Making these batteries available to Envirostream for recycling demonstrates LGES’s commitment to our shared vision. Envirostream have been recycling LGES batteries since 2018 and it is very pleasing to see LGES commit to Envirostream as its Australian battery recycling partner for these new volumes. We would like to thank LGES and look forward to our continued collaboration.”