Livium Ltd secured a significant new recycling agreement with Sell & Parker Pty Ltd valued at more than A$5 million, in what could be the company's largest ever recycling contract. Executed after the end of the March quarter, the agreement is anticipated to deliver revenues of approximately A$3 million over the next 12 months, equivalent to 45% of Livium’s total revenues for financial year 2024.
The three-year agreement positions Livium to deliver recycling services for project-related materials, reinforcing the company's credentials as a recycler operating to high governance and safety standards. First volumes are expected in May 2025, with consistent deliveries extending into financial years 2026 and 2027. Livium does not anticipate any material changes to its operating costs under the agreement, with an increase in gross profit expected.
Livium’s subsidiary Envirostream Australia Pty Ltd continues to benefit from its transition to an upstream ‘fee for service’ model. Despite overall lower collection volumes compared to the prior corresponding period, Envirostream reported higher gross profit, underpinned by upfront service fees.
First volumes under new long-term agreements, including with leading global energy storage provider Hithium, battery and solar solutions provider ZECO Energy, and global power tool manufacturer Hilti, have been received, resulting in a 57% uplift in lithium-ion battery volumes compared to the December 2024 quarter.
“Our updated commercial model for battery recycling continues to deliver. Expected seasonal changes, showed through in Q2 results and as anticipated volumes and profits improved in Q3 and are now supported with a significant long-term contract with Sell & Parker. We look forward to a strong finish to the financial year, which we anticipate will deliver record commercial results," Livium CEO Simon LInge said.
The agreements position Envirostream to benefit from forecast growth in end-of-life lithium-ion batteries from the energy storage sector in Australia, with volumes expected to rise from 2,110 tonnes in 2023 to an estimated 14,820 tonnes by 2030. The agreements with Hithium and ZECO Energy enhance Envirostream’s exposure to this growing market segment.
Envirostream is an accredited recycler under the B-cycle scheme, Australia’s national product stewardship program for handheld end-of-life batteries. Although rebates under the B-cycle scheme have provided some support, they have not delivered substantive economic returns across all battery types. As a result, Envirostream has shifted focus towards high-value, large format lithium-ion battery volumes, where stronger commercial outcomes and volume growth are forecast.
In February, Envirostream signed a recycling agreement with Hilti, a B-cycle accredited manufacturer, under which Hilti pays a service fee in addition to B-cycle rebates. This arrangement reflects Hilti’s environmental, social and governance (ESG) commitments and highlights an emerging pathway for making consumer battery recycling financially sustainable.
Envirostream reported revenue of approximately A$1.4 million and gross profit of approximately A$0.7 million in the third quarter of financial year 2025, delivering a gross profit margin of approximately 51%. The revenue unit rate was approximately A$6.94 per kilogram, a 55% increase on the prior corresponding period, while the gross profit unit rate rose to A$3.50 per kilogram, up 192% over the same period.
Envirostream achieved total collection volumes of 195 tonnes during the third quarter of financial year 2025, including 145 tonnes of large-format lithium-ion batteries (LIBs). This represents an increase of approximately 31% compared to the 110 tonnes collected in the prior corresponding period.
Large-format LIBs accounted for approximately 74% of Envirostream’s total battery collections during the quarter, reflecting the company’s strategic shift towards higher-value recycling streams. While this focus may result in greater volatility in collection volumes, it is delivering improved economic outcomes, as outlined in the above table.
The addressable market for end-of-life lithium-ion battery recycling in Australia is forecast to reach approximately A$122 million by 2030, underpinning Envirostream’s growth strategy.
To meet rising demand, Livium has developed a plan to increase operational capacity and expand into additional states and territories. As part of this expansion, Envirostream has executed a grant funding agreement valued at approximately A$850,000 with the Western Australian Government to establish a new battery sorting, dismantling and discharge facility.
In parallel, the company has progressed discussions with potential investors, including strategic partners and financiers, to support its growth initiatives.
Battery collection volumes and mix (FY23 to Q3 FY25).
ARENA grant supports demonstration plant
Livium’s wholly owned subsidiary, VSPC Pty Ltd (VSPC), has secured a grant of up to A$30 million from the Australian Renewable Energy Agency (ARENA) to support the construction and operation of an Australian lithium ferro phosphate (LFP) demonstration plant. The non-recourse funding follows extensive due diligence, including an independent technical assessment.
The LFP plant will be operated for two years, during which VSPC intends to secure binding offtake agreements for either LFP or lithium manganese ferro phosphate (LMFP). A full-scale 25,000 tonnes per annum facility has the potential to generate annual revenues of approximately US$319 million, based on a LFP price of around US$12.75 per kilogram.
Following the ARENA grant, VSPC has intensified discussions with investors to close the remaining A$30 million funding gap and is engaging potential licensors for its proprietary technology in non-core jurisdictions to optimise capital expenditure. VSPC has also expanded its potential customer base, including major electric vehicle manufacturers, with total demand exceeding 300,000 tonnes per annum – twelve times the demonstration plant’s expected capacity. In the United States, VSPC is represented by UMC, a global leader in chemical distribution.
“Executing a grant agreement with ARENA for A$30 million is significant – this represents 50% of the required funding to build and operate an LFP Demonstration Plant and shows confidence in our technology and Livium after extensive due diligence. We are focused on closing the funding gap in a timely manner to commence work on this important project within our battery materials division," Linge said.
LieNA® technology partnership with Mineral Resources progresses
During the quarter, Livium and Mineral Resources Ltd agreed on next steps for the commercialisation of the LieNA® lithium extraction technology.
The maturity date of MinRes’ A$4.5 million convertible note was extended to 30 September 2025, enabling additional development work, including an assessment of commercialisation pathways and evaluation of a battery-grade lithium carbonate product.
Should Stage 1A development activities be successfully completed, MinRes will convert its note into a 50% equity interest in LieNA Pty Ltd, which currently remains a wholly owned Livium subsidiary.
Strengthened balance sheet and streamlined operations
Livium ended the quarter with cash and listed investments totalling A$5.8 million, supported by a successful A$4.5 million placement to institutional and sophisticated investors.
Operational efficiencies were enhanced through the completion of a corporate restructure, which is forecast to deliver annual cost savings of approximately A$1.7 million. The Company also terminated its strategic funding agreement with The Lind Partners during the quarter.