Livium’s New Facility Boosts Processing Capacity from 2,400 to 10,660 Tonnes Per Year
Livium Ltd has signed a five-year lease for a new Melbourne recycling facility, consolidating three sites and boosting capacity over fivefold. This strategic move positions the company to capitalise on anticipated regulatory reforms and surging volumes of end-of-life lithium-ion batteries.
- Five-year lease with three five-year renewal options for new Melbourne facility
- Facility increases processing capacity from 2,400 to 10,660 tonnes per annum
- Consolidation of three sites into one to improve operational efficiency and cost discipline
- Positioned to capture up to 12x growth in battery recycling volumes by 2030 under regulatory reforms
- Facility designed to co-locate technology partners for rare earth and solar panel recycling
Strategic Expansion in Battery Recycling
Livium Ltd (ASX: LIT) has taken a decisive step to strengthen its position as Australia's leading battery recycler by securing a new, large-scale recycling facility in Melbourne. The five-year lease, with options to extend for an additional 15 years, marks a significant expansion of Livium's core operations through its subsidiary Envirostream Australia.
The new Derrimut Hub will consolidate Livium’s existing Melbourne operations, merging three separate sites into a single facility. This consolidation is expected to deliver operational efficiencies and cost savings, while providing a scalable platform to meet growing demand. The facility’s footprint represents a 60% increase over current capacity, enabling an estimated processing volume increase from 2,400 tonnes per annum to approximately 10,660 tonnes.
Capturing a Regulatory-Driven Growth Opportunity
Livium’s expansion aligns closely with an evolving regulatory landscape in Australia that is expected to formalise battery recycling flows and significantly increase recoverable volumes. The company anticipates a structural shift driven by end-of-life electric vehicle (EV) and energy storage system (ESS) batteries, with volumes forecast to grow fivefold by 2030 under current market trends.
More notably, Livium projects that regulatory reforms aimed at reducing stockpiling and exports could unlock up to 12 times the current volume of recyclable batteries by 2030. This would position Livium to capture a substantial share of the domestic recycling market, leveraging its expanded capacity and operational scale.
A Platform for Innovation and Future Growth
The Derrimut facility is designed not only for scale but also for innovation. It offers space to co-locate technology partners focused on processing black mass, a key intermediate in battery recycling, as well as recycling rare earth elements and solar panels. These adjacent opportunities could diversify Livium’s revenue streams and strengthen Australia’s clean energy supply chain.
Livium’s CEO, Simon Linge, emphasised the strategic importance of the move: "Consolidating our operations into a facility that allows for disciplined, incremental scaling enables us to grow capacity in line with demand, without materially increasing our cost base. This approach supports both operational efficiency and capital discipline."
The staged relocation plan begins with moving Laverton North operations in March 2026, followed by the commercial office mid-year, with Campbellfield processing to follow pending approvals.
Looking Ahead
Livium’s investment in the Derrimut Hub reflects confidence in the long-term growth prospects of battery recycling in Australia. As regulatory frameworks tighten and volumes increase, the company is positioning itself to be a dominant player in a market poised for rapid expansion. The move also underscores the growing importance of sustainable resource recovery in the transition to a low-carbon economy.
Bottom Line?
Livium’s new facility sets the stage for a transformative growth phase, but execution and regulatory clarity will be key to unlocking its full potential.
Questions in the middle?
- How quickly will regulatory reforms be implemented and what impact will they have on Livium’s volume growth?
- What are the timelines and capital requirements for fully ramping up the new facility’s capacity?
- How will Livium’s partnerships in rare earth and solar panel recycling evolve alongside its core battery recycling business?
