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Livium strengthens battery recycling position with Wabtec agreement

Published 12/12/2024, 02:13 pm
Updated 12/12/2024, 02:30 pm
© Reuters.  Livium strengthens battery recycling position with Wabtec agreement

Livium Ltd (ASX:LIT, OTC:LMMFF) has strengthened its leadership position in Australia’s recycling industry after wholly-owned subsidiary Envirostream Australia Pty Ltd signed an exclusive recycling agreement with Wabtec Corporation to recycle lithium-based and nickel-based batteries.

This agreement with Industrea Mining Equipment Pty Ltd, a wholly-owned subsidiary of Wabtec, will see Envirostream exclusively recycle lithium-based and nickel-based batteries used in Wabtec’s FLXdrive Battery Locomotives that will operate in the Pilbara, Western Australia.

Diversifies sources

The agreement, which begins on January 1, 2025, for an initial term of three years and an optional term of one year, diversifies Livium’s end-of-life battery sources, complementing other recently executed battery recycling agreements.

"We are excited to announce this agreement with Wabtec Corporation, a market leader in the rail and mining sectors globally," Livium CEO and managing director Simon Linge said.

"This represents a significant milestone for Livium as it secures exclusive access to batteries from the locomotive industry, which diversifies our battery supply.

"We look forward to delivering value for our stakeholders and building on this momentum to win additional recycling contracts in the near to medium term."

Shares up

Livium shares are 12.5% higher on the ASX at $0.018.

The agreement aligns with Livium’s focus to secure exclusive battery recycling contracts and diversify its end-of-life battery sources. It also ensures a stable and scalable source of batteries from the locomotive sector.

Livium is focused on leveraging this agreement to drive further growth and win additional contracts, reinforcing its leadership position in Australia’s recycling industry.

Responsible operations

Wabtec regional senior vice president, ANZ & SEA, Peter Thomas said: "As Wabtec introduces new products, such as the FLXdrive™ battery locomotive, we continually evaluate our component life cycles and leverage additional recycling opportunities to reduce landfill use and conserve natural resources globally.

“Livium’s expertise and track record supports Wabtec’s effort to drive responsible operations of our products and enables us to properly handle the afterlife batteries.”

The agreement, whilst exclusive, has no minimum volumes and, as a result, Livium is not in a position to quantify the economic impact of the agreement at this stage.

Volumes are predicted to increase over the term of the agreement as more FLXdrive Battery Locomotives are introduced into the fleet.

Read more on Proactive Investors AU

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