Lithium Australia subsidiary Envirostream has signed an exclusive agreement with LG Energy Solution to recycle recalled lithium-ion batteries (LIB) in Australia.
The agreement is for an initial three-year term ending on March 10 2027 and is expected to significantly increase LIB collection volumes from LG Energy Solution, leading to greater recycling revenues.
Lithium Australia has confirmed there are about 6000 units of LG Energy Solution’s large-format LIBs ready for Envirostream to collect and process under the agreement, with about 5000 more units anticipated. This represents about 770 tonnes of LIB batteries altogether.
“We are very excited to announce this new agreement signed with LG Energy Solution, a world leading battery manufacturer for EVs (electric vehicles) and ESS (energy storage system) around the globe,” Lithium Australia managing director and chief executive officer Simon Linge said.
“The signing of this agreement extends the already strong relationship with LG Energy Solution, who shares our vision for sustainable recycling of lithium-ion batteries.”
The agreement replaces the prior recycling agreement Envirostream and LG Energy Solution shared, which was announced in September 2022. Prior to the 2022 agreement, Lithium Australia increased its stake in Envirostream to 90 per cent in 2019.
“Our strategic roadmap identified the importance of signing long term agreements with Tier-1 EV and ESS manufacturers,” 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.”
In January, Lithium Australia announced plans to establish a new partnership similar to its current partnership with Mineral Resources. The new partnership would focus on Lithium Australia’s lithium iron phosphate and lithium manganese iron phosphate products.