Envirostream Signs Agreement With LG Energy Solution To Recycle Significant Lithium-Ion Battery Volumes

Lithium Australia Limited (ASX: LIT, 'the Company') is pleased to advise its wholly owned subsidiary Envirostream Australia Pty Ltd (‘Envirostream’) – which is leading Australia’s battery recycling industry – has executed an agreement (‘Agreement’) with LG Energy Solution (‘LGES’) for the processing of a minimum of 250 tonnes (‘t’) of lithium-ion batteries (‘LIBs’). 250t equates to over 5,000 energy storage systems.

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HIGHLIGHTS

• Envirostream executes agreement with LG Energy Solution (‘LGES’) to process a minimum of 250t of LGES energy storage system (‘ESS’) lithium-ion
• batteries (‘LIBs’).
• These LGES volumes are in addition to current collection volumes and represent nearly 25% of Envirostream’s total collections during FY2022.
• LGES has committed to recycling LIBs and has chosen Envirostream as its Australian recycling partner.
• The additional batteries will be delivered by LGES to Envirostream for processing during FY2023.

Under the terms of the Agreement, LGES will deliver the LIBs to Envirostream’s facilities in Melbourne, Australia, for processing. Envirostream recycles more than 90% of a lithium-ion battery into its core components which includes steel, copper, aluminium and most significantly the critical battery metals which are amalgamated into a mixed metal dust (‘MMD’). The recovered MMD allows the active metals to be repurposed into new lithium-ion batteries anode and cathode powders.

The material terms of the Agreement are summarised at the end of this announcement.

The relationship between Envirostream and LGES commenced in 2018, with Envirostream recycling more than 85t of their batteries to date under previously executed agreements. The minimum 250t volume of LIBs will be processed under the new terms defined within the Agreement.

The signing of this Agreement enables Envirostream to receive additional LGES battery volumes and commence the safe recycling of these batteries with immediate effect.

Envirostream is seeking to obtain similar recycling agreements with other cell and battery manufacturers and will keep the market informed as matters progress.

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