Lithium Australia Ltd (ASX:LIT, OTC:LMMFF) has secured an exclusive agreement with BYD Auto Industry Company Ltd to provide battery recycling services of all electric and plug-in hybrid vehicle end-of-life batteries in Australia.
BYD Auto is a subsidiary of major electric vehicle (EV) manufacturer BYD Company Ltd, which sold a record three million EVs and Plug-in Hybrids (PHEVs) in 2023 and represents 14% of the Australian EV market just two years after rolling out its vehicles in the country.
LIT expects to materially increase large-format lithium-ion (Li-ion) battery collection volumes over the course of the initial three-year deal, given the sheer scale of BYD’s manufacturing volumes.
Australia’s leading Li-ion recycler
“BYD Auto is pleased to officially announce its exclusive partnership with Lithium Australia, a leading technology company delivering critical minerals to the global battery industry, and Australia’s leading battery recycler for end-of-life lithium-ion batteries,” BYD Auto Industry Company Asia Pacific automotive sales division general manager Liu Xueliang said.
“As a global pioneer in battery manufacturing, BYD’s strategic partnership with Lithium Australia is a testament to BYD’s commitment to reducing carbon emissions for a greener future and strengthen its leadership in technological innovation in the global automobile industry.”
Lithium Australia says its focus remains on securing further recycling agreements with leading EV and energy storage system (ESS) manufacturers to secure the future lithium-ion battery supply through an integrated, circular economy.
Successful execution of growth strategy
“We are excited to announce the signing of an exclusive recycling agreement with BYD, the global leader in New Energy vehicles,” Lithium Australia CEO and managing director Simon Linge said.
“This milestone achievement is expected to significantly increase our future collection volumes of large-format lithium-ion batteries (LIBs), further accelerating the company’s shift in battery collections mix to be primarily focused on the higher margin large-format LIBs.
“The signing of this milestone agreement, alongside the various other exclusive recycling agreements announced in recent times, is evidence of our successful execution of the company’s recycling growth strategy.
“We look forward to working alongside BYD and look to leverage this momentum to drive further collections growth in FY25.”
LIT operates Australia’s market-leading battery recycler through its subsidiary Envirostream, producing critical battery material lithium ferro phosphate (LFP) with its patented lithium extraction technology.
The company believes its revenue-generating recycling business and technologies are “well-placed to capitalise on growing global lithium-ion battery demand and provides diversification benefits to global supply chains.”