THE BOURSE WHISPERER: Lithium Australia (ASX: LIT) announced its 24 per cent subsidiary Envirostream Australia Pty Ltd signed a memorandum of understanding (MoU) with South Korean company SungEel HiTech Co., Ltd for the sale of recycled battery metals.
Lithium Australia explained the Envirostream/SungEel MoU involves the exclusive supply of metals extracted from recycled lithium-ion batteries (LIBs) out of Australia.
That supply comprises mixed metal dust (MMD) that contains the energy metals cobalt, nickel and lithium that are recovered from spent LIBs at Envirostream’s battery recycling plant in Melbourne.
Currently, Envirostream is the only Australian company able to recycle all the energy metals from spent LIBs.
Envirostream will recommence shipments of MMD this month, following a recent expansion of the company’s recycling facilities.
Under the new deal, SungEel has agreed that Envirostream will have exclusivity of MMD supply from Australia.
Envirostream will now increase its MMD shipments to SungEel, for refining into cobalt, nickel and lithium chemicals for the production of new LIBs.
“Lithium Australia is working with Envirostream to roll out the latter’s Australia-wide collection network and expand its shredding and separation capacities as rapidly as possible,” Lithium Australia managing director Adrian Griffin said in the company’s announcement to the Australian Securities Exchange.
“The MoU with SungEel provides for immediate refining of the MMD that Envirostream produces.
“It is expected that Envirostream’s next MMD shipment to SungEel will take place this month.
“Expanding Envirostream’s processing capacity to keep spent LIBs from landfill and export the energy metals they contain is an Australian imperative.
“Closing the loop on the production of battery materials reduces the environmental footprint of the mining and processing aspects inherent in LIB production, improves sustainability and prevents the components of spent LIBs from leaking into groundwater and oceans as a consequence of their relegation to landfill or transport to other jurisdictions.
“Together, Lithium Australia, Envirostream and SungEel can provide an immediate and viable solution to the LIB disposal crisis in this country.”
SungEel recovers critical energy metals from LIB scrap, has become not only South Korea’s largest battery recyclers, but is also a global leader in the development of environmentally sustainable technologies.
Envirostream is the only company in Australia with the integrated capacity to collect, sort, shred and separate all the components of spent LIBs, which Lithium Australia considers makes it a perfect fit with its recycling expertise.