Lithium Australia subsidiary Envirostream to begin recycling spent EV batteries after signing supply agreements

Lithium Australia NL’s (ASX:LIT) 90% subsidiary Envirostream expects to begin regular recycling end-of-life (EOL) electric vehicle (EV) batteries in coming weeks after signing further agreements with two additional battery suppliers. The significance of these recycling supply contracts is that Envirostream will become a first mover in the recycling of EOL EV batteries in Australia This comes after Envirostream conducted a series of recycling trials on six different EV battery packs at its recycling facilities in Melbourne, Australia. These trials were intended to document the complete process of EV battery recycling from transport, handling and discharge through to disassembly and materials recovery. Disposal solution A report on this work, which included details of safety procedures, transport, and environmental assessments illustrated that Envirostream can process these EOL battery packs safely, effectively, cost-efficiently and sustainably. The report demonstrated Envirostream can provide a sound and environmentally aware solution to their disposal going forward. Over the past two years, Envirostream has trialled the recycling of EOL battery packs from six different types of EVs. Worldwide, numbers of spent lithium-ion batteries, including EV battery packs, are expected to grow rapidly, underpinning Envirostream’s business model. Battery recycling agreements Under the terms of the non-exclusive battery recycling agreements with the two suppliers, Envirostream, will be responsible for the transport of these battery packs to its recycling facility, as well as protection of intellectual property, the discharge of any residual battery energy and pack disassembly and recycling. Transport of batteries is expected to come from capital cities around Australia as well as Brunei to Envirostream's Melbourne facilities. The agreements have an indefinite term but can be terminated by the supplier on between zero and 60 days’ notice. The company expects to begin recycling a regular small volume of EOL EV battery packs over the next few weeks and will continue activity marketing this service to other Australian and international EV suppliers and manufacturers.