Lithium Australia's (ASX:LIT) wholly owned subsidiary Envirostream Australia has signed an exclusive three-year recycling agreement with BYD Auto Industry Company Limited.
BYD Auto is a global leader in New Energy vehicles, having delivered a record approximately 3 million New Energy vehicles globally in 20231. BYD recently entered the Australian market and has rapidly grown sales to account for around 14% of market share in Australia.
BYD New Energy vehicles are equipped with the revolutionary Blade Battery, which uses lithium iron-phosphate (LFP) as the cathode material and offers a higher level of safety, durability, longevity and performance.
BYD has been pioneering battery technology for over two decades, with the Blade Battery being a product of innovative research and development and represents a major advancement in New Energy vehicles.
This agreement aligns with Lithium Australia’s strategic plan to increase processing capacity of LFP batteries, as securing future LFP battery collections volumes will scale the Company’s LFP processing throughput.
The agreement is for an initial three-year term, with a two-year extension option. Under the agreement, Lithium Australia will receive a service fee for the collection of BYD Auto’s end-of-life LFP batteries.
Lithium Australia CEO and Managing Director, Simon Linge, said the company remains focused on signing exclusive contracts with leading OEMs and battery manufacturers.
“We are excited to announce the signing of an exclusive recycling agreement with BYD, the global leader in New Energy vehicles,” he said.
“This milestone achievement is expected to significantly increase our future collection volumes of large-format lithium-ion batteries (LIBs), further accelerating the company’s shift in battery collections mix to be primarily focused on the higher margin large-format LIBs.
“The signing of this milestone agreement, alongside the various other exclusive recycling agreements announced in recent times, are evidence of our successful execution of the Company’s recycling growth strategy. We look forward to working alongside BYD and look to leverage this momentum to drive further collections growth in FY25.”
