How Livium’s New Contracts and Tech Milestones Could Reshape Battery Recycling
Livium Ltd reported a modest net profit in its battery recycling division for Q4 FY25, while securing significant new contracts and progressing lithium extraction technology development.
- Envirostream posts A$0.2m net profit on A$1.8m sales in Q4 FY25
- New multi-year agreements with BYD Australia and Sell & Parker valued over A$5m
- Progress on LieNA® lithium extraction technology nearing Stage 1A completion
- VSPC LFP demonstration plant advances with ARENA grant funding
- Partnership launched to tokenise carbon credits via NoviqTech’s platform
Battery Recycling Division Shows Resilience Amid Market Challenges
Livium Ltd’s battery recycling arm, Envirostream Australia, delivered a net profit of approximately A$0.2 million in the June 2025 quarter, supported by sales of A$1.8 million. While this represents a slight decline from the prior corresponding period, the division’s gross margin of 70% underscores improving operational efficiency under its fee-for-service model. Envirostream collected 226 tonnes of batteries during the quarter, with a strategic focus on high-value large-format lithium-ion batteries.
Expanding Commercial Footprint with Key Contracts
Envirostream secured ten new commercial agreements, notably expanding its partnership with BYD Australia to include commercial vehicle and energy storage system batteries. BYD’s record sales surge in Australia highlights the potential scale of this contract. Additionally, a new three-year recycling services agreement with Sell & Parker is expected to generate revenues exceeding A$5 million. These contracts not only bolster Envirostream’s volume pipeline but also position Livium as a key player in Australia’s growing battery recycling ecosystem.
Innovating with Rare-Earth Element Recovery and Carbon Credit Tokenisation
Livium is actively exploring partnerships to integrate rare-earth element extraction technologies, aiming to broaden its circular economy services and tap into a sector forecasted to exceed A$9.6 billion in value. Complementing this, the company launched a collaboration with NoviqTech to tokenise the environmental benefits of its recycling operations via the Carbon Central platform. This initiative enhances transparency and creates future monetisation pathways for carbon credits, aligning with increasing sustainability demands.
Lithium Extraction and LFP Plant Progress
The LieNA® lithium extraction technology is nearing completion of Stage 1A activities, with formalisation of a joint venture with Mineral Resources Ltd anticipated soon. Meanwhile, the VSPC lithium iron phosphate (LFP) demonstration plant continues to advance, supported by a A$30 million grant from ARENA. Livium is actively pursuing matching funding to complete the project, with a decision on the plant’s viability expected in the coming quarter. Alternative strategies may be considered to protect shareholder value if funding targets are not met.
Corporate and Financial Position
Livium maintains a cash position of approximately A$3.8 million following the disposal of listed investments. The company appointed Phillip Campbell as independent Non-Executive Chair, reinforcing governance strength. CEO Simon Linge’s recent appointment as President of the Association for the Battery Recycling Industry further elevates Livium’s industry leadership. The company also supports the Battery Stewardship Council’s ACCC interim authorisation, advocating for improved battery stewardship and safety standards nationally.
Managing Legacy Risks and ESG Commitments
Envirostream continues to manage historical insurance claims related to a 2019 fire incident, with court hearings scheduled for early 2026. Livium’s ESG reporting highlights ongoing commitment to workplace safety and Indigenous partnerships, alongside active participation in sector-wide sustainability initiatives.
Bottom Line?
Livium’s strategic contract wins and technology advancements set the stage for growth, but funding and legacy risks remain key watchpoints.
Questions in the middle?
- Will Livium secure the additional A$30 million funding needed to complete the VSPC LFP demonstration plant?
- How will the rare-earth element extraction partnerships impact Livium’s revenue diversification and margins?
- What are the potential outcomes and financial implications of the pending insurance claims related to the 2019 fire?