Livium’s Envirostream has formalised a multi-year recycling framework with CATL HK, underpinning its role in Australia’s lithium-ion battery circular economy and setting the stage for regional expansion.
- Framework agreement with CATL HK formalises existing partnership
- Services include collection, logistics, recycling, certification, and reporting
- Initial term through to May 2029 with potential New Zealand expansion
- Non-exclusive contract with no minimum volume commitments
- Strengthens Livium’s position in the regional battery supply chain
Formalising a Strategic Recycling Partnership with CATL
Livium Ltd (ASX:LIT) has taken a significant step in cementing its role in the lithium-ion battery lifecycle by executing a new Recycling Services Framework Agreement with Contemporary Amperex Technology (Hong Kong) Limited (CATL HK), a subsidiary of the world’s largest lithium-ion battery manufacturer. This deal formalises a relationship that Envirostream Australia, Livium’s wholly owned recycling arm, has already been operating under on a purchase order basis.
Under this framework, Envirostream will provide a suite of services including battery collection, logistics, dismantling, processing to black mass, certification, and destruction reporting. These services will be delivered primarily in Australia, with the agreement leaving open the possibility of extending operations into New Zealand to support CATL’s regional battery management needs.
Contract Terms and Operational Flexibility
The agreement spans an initial term through to 15 May 2029, signalling a long-term commitment to supporting CATL’s end-of-life battery requirements as volumes scale. Notably, the contract is non-exclusive and does not impose minimum volume commitments, with pricing and scope determined on a case-by-case basis via individual purchase orders. This structure offers Livium operational flexibility while positioning it as a trusted downstream partner within the battery supply chain.
Livium CEO Simon Linge highlighted the milestone, stating that formalising the relationship with CATL reflects the global leader’s confidence in Envirostream’s recycling capabilities and operational standards. The deal aligns with Livium’s broader strategy to collaborate with major battery manufacturers to ensure safe, compliant, and efficient recycling solutions amid growing battery volumes in the region.
Supporting Australia’s Circular Battery Economy
This framework agreement strengthens Livium’s foothold in the circular battery economy, a critical component of Australia’s clean energy transition. Envirostream’s role in processing black mass; the valuable material recovered from spent batteries; is central to closing the loop in lithium-ion battery supply chains. The partnership with CATL, a key player in global energy transition, underscores Livium’s growing influence in regional recycling markets.
Livium has been expanding its recycling capacity and capabilities, including securing a new Derrimut hub and advancing rare earth and solar panel recycling technologies, positioning the company to meet increasing demand for sustainable battery disposal and material recovery. The CATL framework deal complements these developments by anchoring a reliable source of battery feedstock and revenue potential as the market matures.
Bottom Line?
Livium’s formal framework with CATL sets a foundation for scaling battery recycling services in Australia and potentially New Zealand, but financial impact will hinge on future purchase order volumes and pricing agreements.
Questions in the middle?
- How quickly will battery volumes from CATL’s regional operations grow to drive meaningful recycling revenue for Livium?
- Will Livium expand its recycling services into New Zealand under this agreement, and what timelines might apply?
- How will Livium’s non-exclusive framework with CATL affect its competitive positioning against other battery recyclers in the region?