Lithium Australia Ltd (ASX:LIT, OTC:LMMFF) managing director Simon Linge sits down with Jonathan Jackson in the Proactive studio to discuss how the company has enhanced its position in the battery recycling industry after wholly-owned subsidiary, Envirostream Australia Pty Ltd, signed an exclusive recycling agreement with the Buses business arm of Volvo Group Australia. This agreement will enable Envirostream to recycle end-of-life lithium-ion batteries from Volvo’s fleet of electric and hybrid buses.
The agreement spans an initial three-year term, during which Lithium Australia will serve as the exclusive provider of battery recycling services for Volvo's electric and hybrid buses in Australia. This underscores Lithium Australia's strategy to accelerate growth in the collection of large-format lithium-ion batteries, such as those from electric vehicles (EVs) and energy storage systems (ESS), which offer higher margins.
Linge noted the agreement aligns with the company's strategy to target large-scale OEMs and ESS manufacturers to boost high-margin battery collection volumes. The company aims to reach cashflow breakeven within its recycling business by increasing capability and collection volumes.
Volvo supplies electric and hybrid buses to customers across Australia, including the Public Transport Authority in Western Australia and Transdev in Queensland. This partnership is a key part of Lithium Australia’s growth strategy, which focuses on securing exclusive contracts with OEMs that use large format batteries.