Livium Ltd Rebounds to Profit, Raises $4.5m to Boost Battery Recycling Growth
Livium Ltd has turned a profit in the first half of FY26 despite lower revenues, supported by cost cuts and a new joint venture. The company also secured $4.5 million in fresh capital to expand its lithium-ion battery recycling and rare earth initiatives.
- Half-year profit of $0.2m after prior $3.7m loss
- Revenue declined to $2.7m from $3.8m due to lower battery collection volumes
- Raised $4.5m via placement to fund expansion and new initiatives
- Formed 50 – 50 LieNA joint venture with Mineral Resources, adding $2.9m in net assets
- Executive pay restructured to align with strategy and conserve cash
Financial Turnaround Amid Revenue Dip
Livium Ltd (ASX – LIT), Australia's leading lithium-ion battery recycler through its Envirostream division, has reported a modest profit of $0.2 million for the half-year ended 31 December 2025, reversing a significant loss of $3.7 million in the previous corresponding period. This turnaround comes despite a 29% drop in revenue to $2.7 million, primarily due to lower-than-expected lithium-ion battery collection volumes.
The company’s gross profit also halved to $1.2 million, reflecting a reduced gross margin of 45% compared to 61% a year earlier. Fixed costs in recycling operations and subdued sales of black mass; the processed battery material; contributed to this margin compression. However, early 2026 volumes suggest a more positive trend, hinting at potential recovery in sales momentum.
Strategic Capital Raise and Operational Consolidation
To support its growth ambitions, Livium successfully raised $4.5 million through a placement to existing and new sophisticated investors. The funds will be directed towards expanding national lithium-ion battery collections, consolidating processing operations into a new centralised hub, and advancing initiatives in rare earth elements, photovoltaic recycling, and black mass processing.
The placement involved issuing 360 million new shares at $0.0125 each, accompanied by free-attaching options exercisable at $0.02, reflecting investor confidence despite the recent revenue dip. This capital injection also improved the company’s working capital position, shifting from a deficit of $6.2 million mid-2025 to a surplus of $0.6 million at year-end.
LieNA Joint Venture Boosts Balance Sheet
A notable highlight was the formation of a 50 – 50 joint venture with Mineral Resources Ltd focused on the LieNA® lithium extraction process. This JV contributed a $2.9 million gain to Livium’s net assets and an additional $0.3 million share of profit, marking a significant step in diversifying the company’s technology portfolio beyond battery recycling.
Livium now accounts for this JV as an equity investment, signaling a strategic pivot towards integrating lithium chemical processing capabilities alongside its core recycling business. The company is also progressing funding arrangements for VSPC, its battery materials subsidiary developing next-generation lithium ferro phosphate cathodes.
Operational and Remuneration Adjustments
Cost discipline was evident with reduced employee expenses following a restructure and the removal of short-term incentives. Share-based payment expenses also fell sharply due to the cancellation of performance rights. Executive remuneration was rebalanced, including a base salary reduction for the CEO and partial deferral of non-executive director fees into zero-exercise-price options, aligning incentives with Livium’s refined strategy while conserving cash.
Envirostream continues to lead Australia’s battery recycling market, securing new contracts and exploring emerging opportunities such as battery stockpiling, grid-scale and residential energy storage, and recycling of solar panels and rare earth elements. These initiatives position Livium to strengthen its role in Australia’s clean-energy supply chain.
Bottom Line?
Livium’s return to profitability and strategic capital raise set the stage for growth, but execution on new ventures and volume recovery will be critical to sustaining momentum.
Questions in the middle?
- Will Envirostream’s battery collection volumes rebound sustainably in 2026?
- How quickly will the LieNA joint venture translate into meaningful revenue and profit contributions?
- What progress and funding milestones can investors expect from the VSPC battery materials project?
