Lithium Australia NL’s (ASX:LIT) 24%-owned battery recycling subsidiary Envirostream Australia Pty Ltd has signed an MoU for the sale of recycled battery metals.
The MoU is with South Korean company SungEel HiTech Co., Ltd which is one of the world’s largest battery recyclers.
The product being supplied is mixed metal dust (MMD) containing cobalt, nickel and lithium recovered from lithium-ion batteries (LIBs) at Envirostream’s battery recycling plant in Melbourne.
Envirostream will recommence its shipments of MMD this month, following a recent expansion of its recycling facilities.
Envirostream is only Australian company recycling LIBs
LIT’s managing director Adrian Griffin said: “Lithium Australia is working with Envirostream to roll out the latter's Australia-wide collection network and expand its shredding and separation capacities as rapidly as possible.
“The MoU with SungEel provides for immediate refining of the MMD that Envirostream produces.
“It is expected that Envirostream's next MMD shipment to SungEel will take place this month.
“Expanding Envirostream’s processing capacity to keep spent LIBs from landfill and export the energy metals they contain is an Australian imperative."
Part of creating a circular battery metals economy
LIT aims to close the loop on the lithium-ion battery economy through its exposure to all parts of the cycle.
This is represented through its four business divisions — raw materials, lithium chemicals, batteries, and recycling.
Griffin added: “Closing the loop on the production of battery materials reduces the environmental footprint of the mining and processing aspects inherent in LIB production, improves sustainability and prevents the components of spent LIBs from leaking into groundwater and oceans as a consequence of their relegation to landfill or transport to other jurisdictions.
“Together, Lithium Australia, Envirostream and SungEel can provide an immediate and viable solution to the LIB disposal crisis in this country."
LIT considering float for recycling business
LIT recently outlined in its business restructure that is considering a public float Envirostream Australia Pty Ltd.
LIT sees the recycling of spent batteries as a significant opportunity, given the increased legislative and community focus on environmental responsibility.
It expects that the restructured Envirostream/LIT recycling business unit will be investment-ready in the first half of 2020.