Lithium Australia (ASX:LIT) has announced that its wholly owned subsidiary, Envirostream Australia, has signed an exclusive 3-year recycling agreement with BYD Auto Industry Company.
- Lithium Australia has signed a new exclusive agreement with BYD Auto Industry Company Limited (BYD Auto) to provide battery recycling services for all New Energy vehicles end-of life batteries in Australia
- BYD Auto, the automotive subsidiary of BYD Company Limited, is a global leader in New Energy vehicles, delivering a record circa 3 million New Energy vehicles globally in 2023 and holds around 14% of Australia’s Electric Vehicle (EV) market share after entering the market in 2022
- The exclusive agreement has an initial term of 3 years, and the Company expects to significantly increase large-format lithium-ion battery collection volumes given the scale of BYD Auto
- Lithium Australia remains focused on executing its strategy of signing recycling agreements with leading EV and Energy Storage System (ESS) manufacturers to secure future lithium-ion battery supply
- Lithium Australia’s recycling operations continue to achieve operating cash profits into FY25 following the maiden operating cash profit in Q4 FY24.
Commenting on the Agreement, Lithium Australia CEO and Managing Director, Simon Linge, said: “We are excited to announce the signing of an exclusive recycling agreement with BYD, the global leader in New Energy vehicles. This milestone achievement is expected to significantly increase our future collection volumes of large-format lithium-ion batteries (LIBs), further accelerating the Company’s shift in battery collections mix to be primarily focused on the higher margin large-format LIBs. The signing of this milestone agreement, alongside the various other exclusive recycling agreements announced in recent times, are evidence of our successful execution of the Company’s recycling growth strategy. We look forward to working alongside BYD and look to leverage this momentum to drive further collections growth in FY25.”