Livium Ltd boosted battery recycling revenue and secured a new centralised hub to expand capacity, while advancing rare earth and solar panel recycling technologies. Strategic funding for its lithium cathode plant remains under review.
- Battery recycling revenue rises to A$1.73m on 304 tonnes collected
- Five-year lease secured for Derrimut Recycling Hub to increase capacity
- New contracts include global lithium-ion leader CATL and AWR Group
- Rare earth extraction and solar panel recycling technologies progress
- VSPC funding paused pending strategic partner engagement
Battery Recycling Growth Accelerates with New Hub
Livium Ltd (ASX:LIT) has taken a significant step in scaling its lithium-ion battery recycling operations by securing a five-year lease for a centralised Recycling Hub in Derrimut, Victoria. This facility will expand processing capacity from around 2,400 tonnes per annum at its Campbellfield site to an estimated 10,660 tonnes per annum, enabling the company to handle the anticipated surge in end-of-life battery volumes.
The relocation of its Laverton North operations to the new Hub was completed in March 2026, with plans to move the head office by Q4 FY26 and eventually transfer Campbellfield processing subject to approvals. This move supports Livium’s strategy to consolidate operations, enhance processing efficiency, and allow staged capacity growth, positioning it well to meet increasing market demand.
Battery collections rose to 304 tonnes in Q3 FY26, up from 197 tonnes in the prior quarter, with lithium-ion batteries accounting for 150 tonnes. Revenue climbed to A$1.73 million, generating a gross profit of A$0.91 million and a gross margin of 53%. While lithium-ion volumes showed some variability due to project timing and regulatory factors, the overall trend reflects growing customer adoption and market maturation.
New Customer Wins Diversify Revenue Streams
Envirostream Australia, Livium’s wholly owned subsidiary and Australia’s leading lithium-ion battery recycler, secured multiple new contracts during the quarter. Notably, it onboarded CATL, the world’s largest lithium-ion battery manufacturer, and AWR Group, an Australian solar and energy storage services company. Other new clients include Paul Wakeling Motor Group and municipal councils such as Pyrenees Shire and Sunshine Coast, broadening Livium’s footprint across commercial and government sectors.
The company is also nearing completion of a strategic project with Synergy, Western Australia’s largest electricity generator and retailer, managing end-of-life batteries from the Alkimos Community Battery. This project underlines Envirostream’s capability to support large-scale energy storage assets and signals expansion into Western Australia, backed by a recent A$850,000 grant.
These developments build on Livium’s recent momentum, including its extended Sell & Parker recycling agreement which accelerated volumes and secured advanced payments to fund processing capacity.
Progress in Rare Earth and Solar Panel Recycling Technologies
Beyond battery recycling, Livium advanced its rare earth element (REE) extraction program in collaboration with the University of Melbourne. The latest testwork sustained recovery rates above 90% for critical elements Neodymium and Praseodymium, while reducing operating temperatures by 30%, improving energy efficiency and process selectivity. These technical gains mark a meaningful step towards commercialisation of the REE extraction process.
In solar panel recycling, Livium’s partner Iondrive achieved over 85% silver recovery in initial testing using Deep Eutectic Solvent technology, a promising indicator for extracting high-value materials from end-of-life photovoltaic panels. Additionally, Livium shipped 600 solar panels to South Korea’s Won Kwang S&T for dismantling and recovery validation, advancing an integrated recycling pathway for solar materials.
This technology progress complements Livium’s core battery recycling business and aligns with its broader vision to develop a diversified clean energy recycling portfolio. The company’s efforts follow earlier announcements on successful REE scaling and solar panel recycling strategy, reinforcing sustained R&D momentum.
Funding for Lithium Cathode Plant on Hold Pending Strategic Partners
Livium’s lithium ferro phosphate (LFP) cathode powder demonstration plant, operated via its VSPC subsidiary, remains a key growth initiative. The company had pursued a phased funding approach designed to match an ARENA grant of up to A$30 million, which included a managed sell-down of Livium’s equity stake in VSPC.
However, following feedback from prospective financial investors emphasizing the need for industry leadership, Livium has paused the funding process to finalise discussions with strategic partners who have tested the VSPC product and are actively considering investment. If these strategic funding arrangements are not secured by 30 June 2026, Livium plans to take measures to preserve or realise value while limiting further expenditure on VSPC.
This cautious approach reflects the company’s intent to balance capital deployment with value preservation amid evolving investor interest, a dynamic previously noted during its $4.5 million capital raise to boost battery recycling growth.
Financial Position and Outlook
As of 31 March 2026, Livium held a cash balance of A$4.2 million. The company reported a net operating cash outflow of A$1.2 million for the quarter, reflecting ongoing investment in operations and technology development. Livium’s CEO Simon Linge emphasised the company’s focus on aligning infrastructure, technology, and cost structures to support scalable growth as recycling volumes build.
While the company continues to explore strategic partnerships and M&A opportunities to accelerate expansion, the timing and outcome of these engagements will be crucial to its medium-term trajectory. The Derrimut Recycling Hub and advancing technology programs position Livium to capitalise on Australia’s growing clean energy recycling market, but funding clarity for VSPC remains a key watchpoint.
Bottom Line?
Livium’s new Recycling Hub and customer wins set the stage for scaling battery recycling, but the pause on VSPC funding highlights ongoing capital strategy challenges.
Questions in the middle?
- Will strategic partners commit to VSPC funding by the June 30 deadline?
- How quickly can Derrimut Hub ramp processing to meet rising battery volumes?
- What commercial milestones will the rare earth and solar panel recycling technologies achieve next?