Battery recycler Envirostream secures client agreements for volume growth

Livium's battery recycling division Envirostream has started receiving initial volumes under new long-term agreements with major clients including BYD and ZECO Energy, according to an announcement released on Monday.

The company stated it is focusing on growing end-of-life battery volumes while seeking partners to scale operations to meet future demand, which it estimates will create a A$122 million market by 2030.

“We remain focused on growing volumes of end-of-life batteries to continue to improve financial performance over the short term,” Livium CEO and Managing Director Simon Linge said.

Envirostream, a wholly owned subsidiary of Livium, has secured long-term servicing agreements with several automotive manufacturers including Volvo, Hyundai Glovis, Wabtec, and ZECO Energy. It also has a project agreement with LG Energy Solution.

The company is diversifying its revenue streams by finalising agreements with international recycling companies for tolling arrangements and progressing agreements with logistics companies to safely store new batteries.

“We are also keeping an eye on the future to ensure that we are scaled to meet the expected volumes over the coming years,” Linge said. “We will seek to scale our operations through government support and strategic investment.”

The company indicated progress on funding options, with an A$850,000 grant from the Western Australian government “well advanced” and applications for additional state grants submitted. Livium is also in discussions with potential strategic partners and other financial backers.

Envirostream's expansion plans include increasing operational capacity and expanding to other states and territories as the company positions itself to capitalise on projected growth in the battery recycling sector.

Picture: Envirostream LinkedIn