How Livium’s Expanded BYD Deal Could Reshape Battery Recycling in Oceania
Livium has expanded its battery recycling partnership with BYD Australia, now covering commercial vehicle batteries and energy storage systems alongside electric vehicle batteries.
- New 3-year recycling agreement supersedes prior BYD Auto contract
- Scope expanded to include commercial vehicle and battery energy storage systems
- BYD holds 14% of Australia’s EV market with rapid growth since 2022
- Agreement supports Livium’s strategy for long-term, diversified battery sources
- Plans underway to extend recycling services to New Zealand and Pacific Islands
Expanded Partnership Signals Growing Battery Recycling Demand
Livium Ltd (ASX: LIT), through its subsidiary Envirostream Australia, has secured a significant expansion of its battery recycling agreement with BYD Australia. The new contract, effective from 1 May 2025 for an initial three-year term, replaces the previous arrangement with BYD Auto and broadens the scope to include commercial vehicle batteries and battery energy storage systems (BESS), in addition to New Energy vehicle batteries.
This development reflects BYD’s rapid growth in the Australian electric vehicle market, where it currently commands a 14% share after entering just three years ago. Globally, BYD sold a record 4.27 million New Energy vehicles in 2024, underscoring the scale of battery recycling demand Livium is poised to capture.
Strategic Alignment and Market Confidence
Livium’s CEO Simon Linge highlighted that the expanded agreement demonstrates confidence in Envirostream’s recycling capabilities, noting that initial volume expectations have already been exceeded. The partnership aligns with Livium’s broader strategy to secure long-term contracts and diversify its sources of end-of-life batteries, ensuring a stable and scalable supply from both electric vehicles and energy storage sectors.
BYD Australia’s General Manager Wing You emphasized the importance of continuity in battery recycling efforts to support environmental sustainability in Australia, signaling a shared commitment to greener outcomes.
Regional Expansion on the Horizon
Beyond Australia, Livium and BYD are collaborating to extend their recycling services to New Zealand, the Pacific Islands, and the wider Oceania region. While still in early stages, this initiative could enhance regional access to battery recycling infrastructure and strengthen environmental stewardship across multiple markets.
Details on minimum volume commitments and financial terms remain confidential, reflecting commercial sensitivities. However, the agreement’s customary termination clauses and initial three-year term with an optional extension provide a framework for a stable partnership.
As the global transition to sustainable energy accelerates, Livium’s expanded role with a major EV manufacturer like BYD positions it well to capitalize on growing lithium-ion battery recycling needs.
Bottom Line?
Livium’s expanded BYD deal marks a pivotal step in scaling battery recycling amid Australia’s EV surge and regional green ambitions.
Questions in the middle?
- What are the anticipated volumes and financial impacts under the new agreement?
- How quickly will the regional expansion into New Zealand and the Pacific materialize?
- Could Livium’s growing partnership with BYD influence competitive dynamics in Australia’s battery recycling sector?