Can Livium Overcome High Costs to Lead Australia’s Solar Panel Recycling Market?

Strategic Partnership to Address Solar Waste

Livium Ltd (ASX, LIT) has announced a significant step in expanding its clean energy waste recycling capabilities through a memorandum of understanding (MOU) with South Korean solar energy innovator Won Kwang S&T. This collaboration targets the burgeoning challenge of solar panel waste in Australia, a problem expected to escalate sharply as the country’s rooftop solar installations reach end-of-life.

The partnership is structured in three phases, beginning with Livium exporting collected photovoltaic modules to Won Kwang S&T’s established recycling facility in South Korea. This initial phase will test the market viability and technology suitability. Subsequent phases envision partial dismantling of panels in Australia and ultimately the creation of a joint venture to build and operate a domestic photovoltaic recycling plant, leveraging Won Kwang S&T’s proprietary recycling technologies.

Tackling a Growing Environmental and Economic Challenge

Australia faces a looming solar panel waste crisis, with projections estimating over 90,000 tonnes of solar waste annually by 2035. Currently, only about 10% of decommissioned panels are recycled, underscoring a significant environmental gap. Upcoming regulatory changes, including a national product stewardship scheme and amendments to international waste export rules, are poised to restrict landfill disposal and encourage domestic recycling solutions.

Livium’s move into photovoltaic recycling aligns with these regulatory trends and market needs. By leveraging its existing infrastructure and customer relationships through its subsidiary Envirostream Australia, Livium is positioned to capture a growing segment of the clean energy waste market. The company’s asset-light, phased approach mitigates upfront investment risks while allowing for scalable growth as the market matures.

Market Potential and Strategic Implications

The Australian PV recycling market is nascent but poised for rapid expansion, with forecasts suggesting growth from approximately US$3.5 million in 2024 to over US$10.8 million by 2033. Globally, the sector is expected to surge from US$492.8 million to more than US$2.67 billion over the next decade. Livium’s partnership with Won Kwang S&T, a leader in solar energy lifecycle management and recycling technology, offers a competitive advantage in this emerging market.

Livium’s CEO Simon Linge highlighted the strategic fit of this partnership, emphasizing the company’s readiness to address solar waste challenges while diversifying revenue streams. Won Kwang S&T’s CEO Sang Hun Lee noted Australia’s importance as a growth jurisdiction and the opportunity to refine their recycling technology through this collaboration.

While the MOU is non-binding and financial terms remain to be finalized, the phased approach and mutual service fee arrangements provide a clear framework for progressing toward a binding joint development agreement and eventual joint venture.