Envirostream Australia Pty Ltd, a subsidiary of Lithium Australia Ltd (ASX:LIT, OTC:LMMFF), has struck an exclusive three-year battery recycling deal with Hyundai Glovis, part of South Korean motor industry giant Hyundai Motor Group Ltd.
Strong position as demand takes off
This collaboration seals the company’s status as a battery recycler and will propel it into a strong position in the battery recycling industry just as demand for lithium-ion batteries takes off, potentially increasing by 10% to 40% annually until 2030.
Growth in the EV and ESS sectors underscores the escalating need for efficient battery recycling services and offers a substantial market opportunity for Lithium Australia.
The partnership designates the LIT subsidiary as the sole provider of battery recycling services for Hyundai Glovis' batteries in Australia.
This collaboration, which runs until March 2027, will boost the collection volumes of large-format lithium-ion batteries, crucial for electric vehicles (EV) and energy storage systems (ESS).
While the agreement guarantees exclusivity, it sets no minimum volume commitments and permits termination under certain conditions, such as insolvency or unresolved breaches.
Attracting big clients
Envirostream's strategy includes securing contracts with leading original equipment manufacturers (OEMs) and battery producers, to capitalise on this expanding market.
The company, buoyed by a recent agreement with LG Energy Solution, is poised to attract more significant clients in the battery recycling domain.
Lithium Australia CEO and managing director Simon Linge said: “We are very excited to announce the exclusive recycling agreement signed with Hyundai Glovis, the logistics and distribution arm of Hyundai Motor Group, a world-leading OEM for EVs.
“We are pleased to be able to assist them to recycle their large-format EV batteries. Recycling agreements with tier-one EV and ESS manufacturers demonstrate LIT’s blue-chip status as a battery recycler and are key to Lithium Australia’s growth strategy.
“Signing with Hyundai Glovis follows the previously announced agreement with LG Energy Solution and highlights the ongoing momentum that the company has built in early 2024.
“We look forward to building this momentum further and accelerating collection volumes of large-format batteries to drive the company’s growth in 2024.”
Hyundai released this comment: “It is a big step forward for Hyundai Glovis Australia to have an agreement with such an industry-leading recycling company. As part of a global EV manufacturer, Hyundai Glovis Australia endeavours to develop a fully localised recycling loop and Envirostream has shown us its capability of providing reliable and safe services.
“We sincerely believe this agreement will provide a great opportunity for us to grow further by strengthening our partnership with Envirostream.”