An agreement between Lithium Australia Ltd (ASX:LIT, OTC:LMMFF) subsidiary Envirostream Australia and repurposed EV1 battery provider Infinitev Australia is set to expand the company's lithium-ion battery supply and complement recently executed recycling agreements with leading EV and ESS2 manufacturers.
The exclusive agreement with Infinitev, a subsidiary of Amotiv Limited, covers lithium and nickel-based batteries owned by Infinitev and is set for an initial term of three years.
Under the deal, Envirostream Australia Pty Ltd will be responsible for recycling Infinitev-owned batteries.
Furthermore, Infinitev will recommend Lithium Australia's recycling services to its customers, broadening the company's reach within Australia's battery recycling market.
Building circular economy
“We are excited to announce the new agreement signed with Infinitev, a leading provider of remanufactured EV batteries in Australia and New Zealand, LIT CEO and managing director Simon Linge said.
"We are proud to work alongside Infinitev, as both of our companies strive to build a circular economy for EV batteries to reduce battery waste and our environmental footprint,”
“Our focus in FY24 to improve our recycling commercial model continues to deliver cash operating profits into FY25.
"We look forward to continuing this momentum and signing further exclusive recycling agreements with other leading OEMs and EV / ESS manufacturers to secure further battery volumes.”
Service fee and revenue sharing
Under the agreement, Lithium Australia will receive a service fee for collecting lithium and nickel-based batteries from Infinitev.
The agreement also includes a revenue-sharing component from the sale of Mixed Metal Dust (MMD) and Nickel Metal Hydride Batteries generated from the recycled batteries supplied by Infinitev.
The agreement has an initial term of three years, with an option to extend for an additional year. Standard termination rights apply in the event of insolvency or an unremedied breach.
Lithium Australia remains focused on securing exclusive contracts with original equipment manufacturers (OEMs) and battery producers, as evidenced by agreements signed in 2024.
Notably, this partnership with Infinitev offers an alternative source of end-of-life batteries, which the company aims to capitalise on to secure further clients.