Lithium Australia’s recycling unit Envirostream Australia has signed a three-year exclusive recycling deal with LG Energy in Australia. It will recycle used lithium-ion batteries recalled from EVs and ESS applications.
The company said there is also an opportunity to generate revenue from the sale of mixed metal dust to LG Energy Solution. It can be repurposed into
new lithium–ion battery anode and cathode powders.
The agreement replaces a previous agreement from September 2022. Envirostream expects the deal to lead to greater recycling volume. There are already some 6,000 large-format LIBs ready for collection, with another 5,000 anticipated. It represents 770 tonnes of LIBs in all.
It said “signing exclusive contracts with leading battery manufacturers is a core part of Envirostream’s national growth strategy.”
Lithium Australia CEO and Managing Director, Simon Linge said: “We see agreements of this type as key to moving our recycling operations to being cash flow positive and allowing us to grow our capabilities nationally. We are pleased that the first of these agreements is with LG Energy Solution and look forward to announcing further agreements with other tier 1 manufacturers.”
Financial details were not provided but the company said the new agreement has improved commercial terms over the previous agreement.
Photo: Envirostream’s lithium battery recycling facility in Australia. Lithium Australia
