Lithium Australia boosts collection volumes with BYD battery recycling deal
Lithium Australia (ASX: LIT) has signed an agreement with BYD Auto to provide battery recycling services for its new energy vehicles in Australia.
Under the terms of the initial three-year deal, Lithium Australia will receive a service fee for the collection of BYD’s end-of-life lithium iron phosphate (LFP) batteries.
The agreement aligns with Lithium Australia’s strategic plan to increase the processing capacity of LFP batteries.
Volume increase
Lithium Australia chief executive officer Simon Linge said that, given the size of BYD Auto’s market, the deal would significantly increase the company’s large-format lithium-ion battery collection volumes.
“This agreement further accelerates our shift in the collections mix to be primarily focused on the higher-margin large-format lithium-ion batteries,” he said.
“We look forward to working alongside BYD to leverage this momentum and drive further collections growth in the new financial year.”
Recycling agreements
Lithium Australia remains focused on signing recycling agreements with leading electric vehicle and energy storage system manufacturers to secure future lithium-ion battery supply.
The company’s recycling business continues to achieve operating cash profits following a maiden profit of $500,000 for 4Q FY24.
It achieved total collection volumes of 445 tonnes for recycling during the quarter, including a record 242t (up 392% on the previous corresponding period) of large-format lithium-ion batteries.
Lithium-ion batteries made up a record 69% of Lithium Australia’s total battery collections for the quarter, compared to 47% in the previous period.
Battery pioneer
BYD Auto has been pioneering battery technology for over two decades and invented the revolutionary blade battery, which uses LFP as the cathode material and is reported to offer a superior level of safety, durability, longevity and performance.
The company entered the Australian market in 2022 and has rapidly grown its sales to currently account for approximately 14% of domestic market share.
BYD Asia-Pacific automotive sales division general manager Liu Xueliang said the agreement reflected the group’s commitment to reducing carbon emissions for a greener future and would strengthen its leadership in technological innovation within the motor industry worldwide.