From pv magazine Australia
Lithium Australia said the agreement with LG Energy Solution, one of the world’s leading manufacturers of batteries for electric vehicles (EVs) and energy storage systems is expected to significantly increase lithium-ion batteries collection volumes, leading to greater recycling revenues.
“Our strategic roadmap identified the importance of signing long=term agreements with Tier-1 EV and ESS manufacturers,” Lithium Australia managing director and chief executive officer 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.”
The agreement with LG is for an initial three-year term and replaces the prior recycling agreement Envirostream had with the manufacturer. During the term, Envirostream has exclusive rights to provide battery recycling services for LG lithium-ion batteries in Australia which are subject to a recall.
Lithium Australia has confirmed there are about 6,000 units of LG Energy Solution’s large-format lithium-ion batteries ready for Envirostream to collect and process under the agreement, with about 5,000 more units anticipated. This represents about 770 tonnes of battaries, or about 140% of Envirostream’s total lithium-ion batteries collection volumes in the 12 months to July 2023.
In addition to recycling revenues received under the agreement, there is also potential for Envirostream to generate additional revenue from the sale of mixed metal dust back to LG.
The Victorian recycler’s technology is said to be able to recover 95% of the resources from end-of-life batteries, which are then converted into raw materials for new batteries resulting in a circular economy.
Linge said the new agreement with LG presents a significant market opportunity for Envirostream.
“Signing exclusive contracts with leading battery manufacturers is a core part of Envirostream’s national growth strategy,” he said, adding that the company is aiming to leveraging the agreement to win new market leading clients.
“We look forward to announcing further agreements with other tier-1 manufacturers,” he said.
LG is the largest producer of EV batteries outside of China, holding a global market share of about 14% as of 2023. The total tonnage of ESS and EV batteries sold is projected to grow between 10% and 40% year on year until 2030, which in turn is expected to result in an increased demand for battery recycling services.
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