Redivium Pursues 10 TPD UK Recycling Plant as Cash Reserves Dip to $0.26M
Redivium's Q2 FY25 report reveals strategic progress in lithium-ion battery recycling across Europe, including new partnerships and feasibility studies, while navigating tight cash reserves and a critical entitlement offer.
- New partnerships secured in Central and Southeast Europe for battery recycling projects
- Feasibility studies underway for UK and European recycling hubs
- Completed sale of Forrestania exploration assets to Viridian Capital
- Cash reserves declined to $0.26 million, prompting an ongoing entitlement offer
- Plans to issue a green bond following Frankfurt dual listing
Strategic Expansion Across Europe
Redivium Limited (ASX: RIL) has reported steady progress in its lithium-ion battery recycling operations throughout Q2 FY25, focusing on expanding its footprint across Europe. The company has formalised commercial agreements with partners such as ECOWES/SNRB in Romania and Retela AR Europe covering Slovakia, Czech Republic, Germany, and Poland. These partnerships are advancing engineering feasibility studies and environmental permitting, setting the stage for new greenfield recycling sites.
In parallel, Redivium is actively pursuing further feedstock partnerships with compliance scheme operators to secure reliable sources of portable lithium-ion batteries, a critical input for its patented hydrometallurgical recycling circuits. This feedstock focus aligns with increasing European regulatory pressure and funding incentives aimed at sustainable battery lifecycle management.
Feasibility and Funding Initiatives
The company has completed an independent UK-based environmental engineering feasibility study for a proposed 10-tonne-per-day (TPD) recycling facility, or 'Spoke,' with lease negotiations at an advanced stage. This UK project is intended as a template for future European hubs, leveraging grant funding and investment incentives from national and devolved governments.
Redivium’s dual listing on the Frankfurt Stock Exchange has opened avenues for capital raising through a planned green bond issuance, targeting the Vienna Stock Exchange for listing. This initiative reflects the company’s commitment to sustainable finance and scaling its recycling infrastructure.
Asset Rationalisation and Capital Structure
In a strategic move, Redivium completed the sale of its Forrestania exploration assets to Viridian Capital Pty Ltd, allowing the company to concentrate resources on its core battery recycling operations. The sale was finalised on 28 January 2025.
Despite these operational strides, Redivium’s cash position has tightened, with only $0.26 million on hand as of 31 December 2024. The company is conducting a pro-rata non-renounceable entitlement offer at $0.001 per share, aiming to raise a minimum of $1 million to sustain ongoing activities and meet business objectives.
Outlook and Market Positioning
Redivium is positioning itself to capitalize on the growing demand for lithium-ion battery recycling, particularly as Europe shifts toward stricter environmental regulations and increased production of lithium iron phosphate (LFP) batteries. The company’s partnership with Greece’s Sunlight LFP gigafactory to develop hybrid hydrometallurgical processing solutions underscores its forward-looking strategy to address emerging battery chemistries.
While the company faces near-term funding challenges, its expanding partnership network, ongoing feasibility studies, and innovative technology platform provide a foundation for potential growth and market leadership in European battery recycling.
Bottom Line?
Redivium’s next phase hinges on successful capital raising and regulatory approvals to transform feasibility into operational reality.
Questions in the middle?
- Will Redivium secure sufficient funding from the entitlement offer and green bond to sustain growth?
- How quickly can the UK Spoke plant move from feasibility to commissioning?
- What impact will evolving European battery regulations have on feedstock sourcing and project economics?
