Livium Ltd (ASX:LIT, OTC:LMMFF) Ltd has begun strategic engagement with Australian and international rare-earth element (REE) extraction developers, aiming to expand its presence in the circular economy. The initiative builds on the company’s strengths in recycling and materials recovery, with REE extraction viewed as a natural extension of its existing services. The move comes as global REE demand grows amid supply chain risks and export restrictions from China.
The REE market is forecast to reach US$9.6 billion (AU$14.7BN) by 2026, with recycling representing a valuable and underdeveloped subset. Livium’s approach leverages its existing infrastructure, particularly through subsidiary Envirostream, and supports the needs of clients in clean energy and e-mobility.
“Rare earth elements are essential to power technologies that are driving the energy transition, yet global supply chains remain vulnerable to ongoing geopolitical shifts,” Livium managing director and CEO Simon Linge said.
“By actively pursuing options to commercialise REE extraction technologies, we are strategically positioning Livium to meet this growing demand while remaining anchored in our strengths in resource recovery and process innovation.”
Expanding Livium’s circular economy footprint
Livium’s push into REE extraction aligns with its strategic focus on sustainable materials recovery. Discussions with technology developers are centred on potential collaborations, including licensing agreements. The company sees REE extraction as a synergistic addition to its core recycling operations, enabling it to capitalise on rising demand from industries including electric vehicles and consumer electronics.
Automakers such as Ford and Suzuki have recently faced component shortages due to export restrictions from China, highlighting the urgency for alternative supply routes and recycled materials.
Technology fit and commercial potential
REE extraction typically involves recovering rare earths from end-of-life goods like magnets and electric motors using processes such as hydrometallurgy and solvent extraction. Livium, via Envirostream, already undertakes several of these preparatory steps, including shredding and magnetic separation. This positions the company well to integrate REE extraction into its operations with minimal disruption.
The company’s participation in REE recycling could also strengthen Australia’s domestic critical minerals capability, furthering national ambitions to reduce dependency on overseas sources while supporting the energy transition.
Advancing licensing of VSPC cathode material technology
In a parallel initiative, Livium is in advanced discussions to license its proprietary VSPC cathode powder technology in non-core jurisdictions. The patented process produces lithium ferro phosphate (LFP) and lithium manganese ferro phosphate (LMFP) materials with enhanced control over performance characteristics.
While Livium is concentrating on developing its own production centres in strategic locations, licensing the technology elsewhere offers a capital-light path to generate additional revenue. The approach allows the company to monetise intellectual property while focusing internal resources on core market execution.