Lithium Australia NL (ASX:LIT, OTC:LMMFF) is a step closer to full ownership of Envirostream Australia Pty Ltd, having agreed to the terms of acquiring the outstanding 10% of the battery recycling company.
Indicative terms for the final piece of Envirostream – Lithium Australia already holds a 90% interest in the company – have been agreed, with settlement expected on or before March 1.
No binding agreement has been reached but negotiations with Envirostream managing director Andrew Mackenzie, who owns the 10%, are at an advanced stage, with a purchase price of $250,000 expected to seal the deal.
Mackenzie will continue as managing director of Envirostream following completion of the acquisition.
“World’s best practice”
"With the Battery Stewardship Scheme now operating, our acquisition of the final 10% equity in Envirostream is considered a strategic imperative, since battery deliveries are increasing,” Lithium Australia managing director Adrian Griffin said.
“As Australia’s only EPA-permitted and licensed recycler of mixed batteries, including lithium-ion batteries, Envirostream is setting the standard for world’s best practice, with safe storage facilities, limiting of battery quantities onsite and firewall isolation of storage compartments.
"Our goal is to keep spent batteries out of landfill, handle them safely and efficiently and return as much as possible of the critical materials they contain to the battery industry to improve sustainability.”