Livium Ltd (ASX:LIT, OTC:LMMFF) chief executive officer Simon Linge has reaffirmed the company’s strategic direction as it begins the 2026 financial year, emphasising the group’s transition toward a recycling-centric business model. In a shareholder letter, Linge said the core divisions – Battery Recycling, Battery Materials, and Lithium Chemicals – remain integral, but battery recycling is now the company’s primary growth focus.
“Our move towards a recycling-centric model enables us to better leverage Livium’s expertise and supply chain,” he said, highlighting the strong performance of the Battery Recycling division over the past six months.
The company plans to target adjacent commercial opportunities that complement its core capabilities.
Recycling volumes shift, but margins improve
In late FY24, Livium focused its recycling efforts on large-format lithium-ion batteries (LIBs) used in energy storage and electric vehicles. This shift led to a reduction in overall recycling volumes, as non-LIB chemistries were deprioritised. However, this change delivered significantly higher margins and improved resource efficiency.
Linge said efforts to grow lithium-ion battery volumes had been successful, with new customers added across energy storage, e-mobility and embedded batteries. This has reduced the company’s reliance on a few key partners. Future volume growth is expected from both existing and new clients.
To meet demand, Livium is considering tripling the capacity of its Victorian processing facilities and is committed to maintaining its market-leading position in Australia’s LIB recycling sector.
Spoke and Hub model to drive national growth
Livium is progressing with its “Spoke and Hub” model, establishing regional facilities for battery sorting and dismantling (“Spokes”) ahead of transport to the main processing centre (“Hub”) for black mass production. Western Australia has been identified for the first Spoke facility, supported by an A$850,000 WA Government grant.
The national expansion strategy will enable Livium to access new sectors that prefer local solutions, such as the mining industry. The model is expected to improve logistics, safety and scalability across jurisdictions.
The company is also exploring other recycling streams aligned with its skills and customer network, including rare earth element recovery, solar panel recycling and electronic waste (E-waste) opportunities.
Funding priorities for LFP demonstration plant
Battery Materials subsidiary VSPC Pty Ltd secured a A$30 million grant from the Australian Renewable Energy Agency (ARENA) earlier this year for a lithium ferro phosphate (LFP) demonstration plant. This grant covers 50% of the funding required.
Livium is actively pursuing funding partners for the remaining share and has set a target to secure viable funding options by the first quarter of FY26. If no suitable arrangement is confirmed, the company will assess alternatives for VSPC that preserve or realise value and reduce working capital requirements.
LieNA joint venture tracking toward completion
Meanwhile, Lithium Chemicals subsidiary LieNA Pty Ltd is nearing the completion of Stage 1A activities to assess commercialisation pathways for the LieNA® extraction technology. Livium and its partner Mineral Resources Ltd (MinRes) are preparing to finalise this stage and convert the Convertible Note Deed, leading to formation of a 50:50 joint venture.
Completion of the joint venture is still expected within the first quarter of FY26.
Positioned for sustainable growth
As Livium enters FY26, Linge said the company is guided by a clear strategic focus, a strengthened business model and a disciplined approach to capital allocation.
“With battery recycling at the core of our strategy and a pipeline of value-accretive opportunities in battery materials and lithium chemicals, we are building a resilient, future-focused business that supports the global transition to a circular, battery-powered economy,” Linge said.