Livium Signs Binding Term Sheet with Iondrive related to DES Technology for Clean Energy Waste Recycling

Livium Ltd (ASX: LIT) ("Livium" or the "Company") is pleased to announce it has signed a binding term sheet (“Term Sheet”) with Iondrive Limited (ASX: ION) (“Iondrive”), an Australian company developing an innovative metal extraction process using Deep Eutectic Solvent technology (DES), via their subsidiary Iondrive AU Pty Ltd.

HIGHLIGHTS

• Livium has signed a binding Term Sheet with Iondrive to advance the recycling of clean energy waste using Iondrive’s innovative Deep Eutectic Solvent (DES) technology
• Livium will supply Iondrive with end-of-life solar panels, lithium-ion battery black mass, rare earth element (REE) magnets, to support evaluation of Iondrive's high-recovery DES process
• Partnership combines Livium’s customer and feedstock access with Iondrive’s novel technology, positioning both to become leaders in Australian clean energy waste processing
• Partnership compliments the recently announced collaboration with the University of Melbourne¹, which also relies on the sourcing of waste by Livium
• This significant step further advances Livium’s strategic aim of deploying its recycling capabilities into broader waste markets

In accordance with the Term Sheet, Livium will supply Iondrive with a range of end-of-life materials, including solar panels, lithium-ion battery black mass, rare earth magnets, and other samples. This collaboration will support the continuous development and commercialisation of Iondrive’s DES process, which already demonstrates over 95% recovery rates in testing and offers a sustainable, closed-loop alternative to conventional methods².

This deal, which follows the recently announced partnership with the University of Melbourne, is a significant step in strengthening the Company’s recycling capabilities across a range of adjacent market opportunities. The results of these programs will inform techno-economic assessments and pave the way for future commercial supply and co-location agreements.

Summary of Key Terms:

• Livium will provide Iondrive with defined waste streams of solar panels, lithium-ion battery black mass, rare earth magnets, and other samples.
• Iondrive will apply its DES processes to evaluate recovery pathways and commercial scalability.
• Iondrive will retain ownership of all DES intellectual property (IP) and results, Livium retains IP in Sample generation.
• Both parties will use their best endeavours to commence negotiations of binding commercial agreements for supply and co-location of DES processing units within 21 months.
• The Term Sheet includes limited exclusivity provisions in Australia during the evaluation period.
• Either party may terminate the agreement on 30 days’ notice, subject to customary conditions.

Adjacent Market Opportunities

Australia's transition to a clean energy future is creating a wealth of adjacent market opportunities in e-waste recycling, with the country's early adoption of renewable technology now generating a substantial and growing stream of end-of-life products.

The most prominent of these is solar panel (PV) recycling, where an estimated 100,000 tonnes of PV waste is projected annually by 20303, creating a significant feedstock opportunity for a nascent industry. Australia stands to unlock over A$1 billion in recoverable materials from end-of-life solar panels by 20354. Capturing this market domestically presents a major opportunity to secure a local supply of critical minerals like lithium, cobalt, and nickel.

The market for lithium-ion battery black mass recycling also represents a major growth opportunity within the circular economy. As a key component of end-of-life batteries, black mass is rich in critical minerals such as lithium, cobalt, and nickel. The global market, valued at US$14.4 billion in 2024, is projected to surge to US$51.7 billion by 20325, driven by the explosive adoption of electric vehicles and a global push for sustainable supply chains.

Beyond solar and batteries, the growing e-waste stream is also creating a business case for rare earth element (REE) recycling. While the global REE recycling market is still relatively small, valued at around US$248 million in 2021, it is projected to surpass US$422 million by 20266. This growth is driven by the demand for magnets in EVs and wind turbines, coupled with a global push to reduce reliance on primary REE mining and strengthen supply chain security. Despite low current recycling rates of less than 1%, the high value and critical importance of REE elements create a strong commercial incentive to develop innovative recycling solutions in Australia, ultimately helping to close the loop on the nation's strategic mineral supply.

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