Livium Powers Ahead with Record Recycling Gains and Major ARENA Grant

April 28, 2025 11:51 AM AEST | By Team Kalkine Media

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Livium Powers Ahead with Record Recycling Gains and Major ARENA Grant — Image source: shutterstock

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Highlights

Livium clinches record A$30M ARENA grant to boost battery material production

Envirostream scales up recycling operations with strong profit margins

Strategic agreements fuel Livium's growth in battery and recycling sectors

Livium Ltd (ASX:LVM) is stepping into a new growth phase after reporting a strong March quarter, highlighted by record recycling performance and a significant A$30 million grant secured from the Australian Renewable Energy Agency (ARENA).

Post-quarter, Livium signed a milestone recycling contract with Sell & Parker valued over A$5 million. This agreement is set to contribute approximately A$3 million in revenues over the next 12 months, representing nearly 45% of the company's FY24 total revenue. The three-year deal will see Livium deliver recycling services starting May 2025, with volumes extending through FY26 and FY27, without material cost increases, bolstering gross profits.

Envirostream Australia Pty Ltd, Livium’s battery recycling arm, continues to benefit from its strategic pivot to an upfront ‘fee-for-service’ model. Despite a slight dip in total battery collection volumes year-on-year, higher gross profits were achieved, thanks to upfront service fees and a targeted focus on large-format lithium-ion batteries. In the March quarter, Envirostream delivered a gross profit margin of approximately 51% and reported a 55% rise in revenue unit rates compared to the prior corresponding period.

Strategic agreements with major players like Hithium, ZECO Energy, and Hilti are already yielding results, driving a 57% uplift in lithium-ion battery volumes compared to the December 2024 quarter. Envirostream’s growth strategy aligns with Australia's booming battery recycling market, forecast to reach A$122 million by 2030. Expansion plans are underway, backed by a Western Australian Government grant of A$850,000 to establish a new facility.

Meanwhile, Livium's battery materials division, VSPC Pty Ltd, secured the transformative A$30 million ARENA grant to build and operate a lithium ferro phosphate (LFP) demonstration plant. The project has the potential to tap into a US$319 million revenue opportunity annually, with strong interest from electric vehicle manufacturers. Discussions with strategic investors and technology licensors are progressing to bridge the remaining funding gap.

Adding further momentum, Livium advanced its LieNA® lithium extraction technology partnership with Mineral Resources Ltd (ASX:MIN), extending a key convertible note to allow for additional development work.

Supported by a strengthened balance sheet with A$5.8 million in cash and investments, along with a recent A$4.5 million placement, Livium appears well-positioned to accelerate its recycling and battery material initiatives, shaping a promising future in the clean energy sector.

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