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Highlights
- Livium signs exclusive recycling deal with Wabtec.
- Agreement diversifies Livium's battery sources.
- Focus on sustainable and responsible operations.
Livium Ltd (ASX:LIT) has solidified its leadership in Australia's recycling industry through an exclusive agreement between its wholly-owned subsidiary, Envirostream Australia Pty Ltd, and Wabtec Corporation. This partnership will see Envirostream recycle lithium-based and nickel-based batteries used in Wabtec’s FLXdrive Battery Locomotives operating in the Pilbara, Western Australia.
The agreement, which begins on January 1, 2025, for an initial term of three years with an optional one-year extension, diversifies Livium’s sources of end-of-life batteries. This complements other recently executed battery recycling agreements, enhancing Livium's capacity to manage a broader range of battery types.
Simon Linge, CEO and Managing Director of Livium, expressed enthusiasm about the partnership. "We are excited to announce this agreement with Wabtec Corporation, a market leader in the rail and mining sectors globally," Linge said. "This represents a significant milestone for Livium as it secures exclusive access to batteries from the locomotive industry, which diversifies our battery supply. We look forward to delivering value for our stakeholders and building on this momentum to win additional recycling contracts in the near to medium term."
Livium shares saw a 12.5% increase on the ASX, reaching $0.018, following the announcement. The agreement aligns with Livium’s strategy to secure exclusive battery recycling contracts and diversify its end-of-life battery sources. It also ensures a stable and scalable supply of batteries from the locomotive sector, reinforcing Livium's leadership position in the recycling industry.
Peter Thomas, Wabtec's Regional Senior Vice President for ANZ & SEA, highlighted the importance of responsible operations. "As Wabtec introduces new products, such as the FLXdrive™ battery locomotive, we continually evaluate our component life cycles and leverage additional recycling opportunities to reduce landfill use and conserve natural resources globally. Livium’s expertise and track record support Wabtec’s effort to drive responsible operations of our products and enables us to properly handle the afterlife batteries."
While the agreement is exclusive, it does not specify minimum volumes, making it challenging for Livium to quantify the economic impact at this stage. However, volumes are expected to increase over the term of the agreement as more FLXdrive Battery Locomotives are introduced into Wabtec's fleet.
This partnership marks a significant step for Livium in its mission to lead the battery recycling industry, leveraging its expertise to support sustainable and responsible operations. As the agreement progresses, Livium aims to drive further growth and secure additional contracts, reinforcing its commitment to environmental stewardship and innovation in recycling technologies.
