Livium Reports Strong Growth in Recycling and Battery Technology Sectors

Highlights:

• Livium secured a new recycling agreement valued at over A$5 million, with substantial revenue forecast.

• The company has been awarded a significant A$30 million grant to develop an Australian lithium ferro phosphate plant.

• Envirostream, a subsidiary of Livium, has transitioned to a ‘fee for service’ model, achieving higher gross profits despite lower collection volumes.

Livium Ltd operates within the recycling and battery technology sectors, focusing on lithium-ion battery recycling and the development of cutting-edge battery materials. The company has made notable advancements in both areas, securing new contracts and funding that strengthen its market position.

Recycling Agreement with Sell & Parker

Livium has recently entered into a significant recycling agreement with Sell & Parker Pty Ltd, valued at over A$5 million. This new contract, signed after the close of the March quarter, is set to generate considerable revenue over the next year. Livium anticipates that this agreement will contribute substantially to its total revenue, reflecting the company’s expanding presence in the recycling market. Under this agreement, Livium will provide recycling services for project-related materials, maintaining its commitment to high governance and safety standards.

Envirostream’s Growth and Strategic Shifts

Envirostream Australia Pty Ltd, a subsidiary of Livium, has made a strategic shift to a fee-for-service business model for battery recycling. This transition has led to an increase in gross profit, despite a decline in overall collection volumes compared to the previous year. Envirostream has reported higher revenue and gross profit margins, driven by its focus on large-format lithium-ion batteries. The company has also secured new long-term contracts with global companies in the energy storage and battery sectors, which have contributed to a marked increase in lithium-ion battery volumes.

As a result, Envirostream is well-positioned to benefit from the anticipated growth in end-of-life lithium-ion batteries in Australia, especially in the energy storage sector. This shift aligns with broader market trends, as the demand for battery recycling continues to rise, and the company remains focused on securing higher-value materials to drive economic returns.

ARENA Grant and Lithium Ferro Phosphate Plant Development

Livium’s subsidiary, VSPC Pty Ltd, has successfully secured a grant from the Australian Renewable Energy Agency (ARENA) to support the development of a lithium ferro phosphate (LFP) demonstration plant. This grant will play a crucial role in the construction and operation of the plant, which aims to produce LFP and lithium manganese ferro phosphate (LMFP) for use in the growing electric vehicle and energy storage sectors. The grant is part of a broader effort to develop technologies that can support the energy transition and boost Australia’s position in the global battery materials market.

VSPC is also in discussions with investors to secure the remaining funds needed for the full-scale operation of the plant. The company is targeting binding offtake agreements for its lithium products, with growing interest from major electric vehicle manufacturers. The project represents a significant step in Livium’s broader strategy to expand its footprint in the battery materials sector, and the grant from ARENA is a testament to the company’s technology and growth prospects.

Commercialisation of LieNA® Lithium Extraction Technology

Livium has also made progress in the commercialisation of its LieNA® lithium extraction technology, in partnership with Mineral Resources Ltd. The two companies are moving forward with plans to assess potential pathways for lithium extraction, with the aim of producing battery-grade lithium carbonate. This partnership is set to play a key role in Livium’s broader strategy to become a leader in the lithium supply chain, supporting both the growing demand for electric vehicles and the transition to renewable energy.

Financial Position and Operational Efficiency

At the end of the March quarter, Livium reported a strengthened financial position, with cash and listed investments totaling A$5.8 million. This has been bolstered by a successful placement to institutional and sophisticated investors, which provides the company with the resources needed to fund its growth initiatives. Additionally, Livium has completed a corporate restructure aimed at improving operational efficiency, which is expected to deliver cost savings in the future.

Expansion and Capacity Growth

In line with its growing market position, Livium is working to expand its operations into new states and territories. This expansion is supported by a grant funding agreement with the Western Australian Government, which will help establish a new facility for battery sorting, dismantling, and discharge. As demand for recycling services continues to rise, Livium is strategically positioning itself to meet the increasing needs of the Australian market.

In the context of the Australian mining and recycling sectors, ASX Mining Stocks such as Livium Ltd (ASX:LVM) are positioned to benefit from the growing demand for sustainable practices in battery production and recycling, reflecting a broader trend towards environmentally responsible resource management.