Livium Faces Volume Challenges Amid Strategic Shift to Clean Energy Waste Recycling

Strategic Transition to Clean Energy Recycling

Livium Ltd (ASX – LIT) has marked a significant milestone in its evolution by completing a strategic transition to focus primarily on recycling clean energy waste. This new direction builds on its established lithium-ion battery recycling business and extends into processing black mass, photovoltaic (PV) solar panels, and rare-earth elements (REE). The company’s CEO, Simon Linge, highlighted that this focused approach leverages Livium’s operational strengths and long-standing relationships with original equipment manufacturers (OEMs) to deepen integration within Australia’s clean energy supply chain.

Q1 FY26 Financial and Operational Highlights

During the September quarter, Livium’s subsidiary Envirostream Australia Pty Ltd, the market leader in lithium-ion battery recycling in Australia, generated revenue of A$1.47 million and a gross profit of approximately A$0.74 million, representing a 50% gross margin. The company collected 202 tonnes of batteries, with over half being large-format lithium-ion batteries. While collection volumes were below initial expectations due to delayed contract completions, Livium anticipates these volumes will materialize over the remainder of the financial year.

Expanding Recycling Verticals Through Strategic Partnerships

Livium is actively broadening its recycling portfolio beyond batteries. It has forged key partnerships to advance its capabilities in black mass processing, solar panel recycling, and REE recovery. Notably, a binding term sheet with Iondrive Limited will apply proprietary Deep Eutectic Solvent technology to process end-of-life solar panels and rare-earth magnets. Additionally, a memorandum of understanding with Won Kwang S&T aims to establish a joint venture for PV recycling in Australia, while an exclusive agreement with the University of Melbourne secures global rights to innovative microwave extraction technology for REEs. These collaborations position Livium to capitalize on high-growth adjacencies and diversify revenue streams.

LieNA® Joint Venture and Technology Commercialisation

In a significant development, Livium has formed a 50 – 50 joint venture with Mineral Resources Ltd (ASX – MIN) to commercialize the LieNA® lithium processing technology. This JV holds all related intellectual property and aims to license the technology to third parties, marking a shift from development to commercialisation. The formation of the JV has already resulted in a net asset uplift for Livium and a cash distribution, underscoring the value of this partnership.

Capital Raise and Financial Position

Supporting its strategic ambitions, Livium successfully completed a A$4.5 million placement to institutional and sophisticated investors shortly after the quarter ended. The strong demand, exceeding 200% of the raise, reflects investor confidence in Livium’s clean energy recycling strategy. Proceeds will fund the expansion of battery collections, the relocation to a new centralized processing hub, and the advancement of recycling adjacencies. At quarter-end, Livium held A$1.8 million in cash, bolstered by a recent R&D tax incentive rebate of approximately A$0.65 million.

Ongoing Challenges and Outlook

While Livium’s strategic repositioning is well underway, challenges remain. Battery collection volumes have been slower to ramp up than anticipated, and funding for VSPC’s lithium ferro phosphate (LFP) Demonstration Plant is still under assessment. Additionally, the company continues to manage legacy insurance claims related to a 2019 fire incident, with legal proceedings scheduled for early 2026. Nonetheless, Livium’s diversified approach, strong partnerships, and capital backing provide a solid foundation for growth in the burgeoning clean energy recycling sector.