LITHIUM Australia (ASX: LIT) has confirmed an offtake deal with Korean battery recycler SungEel Hitech Co via its 24pc-owned subsidiary Envirostream Australia.
The companies signed a memorandum of understanding (MoU) for the exclusive supply of metals extracted from recycled lithium-ion batteries (‘LIBs’) out of Australia, specifically of mixed metal dust (MMD) containing the energy metals cobalt, nickel and lithium.
Lithium Australia managing director Adrian Griffin said the MoU provides for immediate refining of the MMD that Envirostream produces.
“Expanding Envirostream’s processing capacity to keep spent LIBs from landfill and export the energy metals they contain is an Australian imperative,” Mr Griffin said.
“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.”
Currently, Envirosteam is the only Australian company able to recycle all the energy materials from spent LIBs and SungEel has agreed that the company will have exclusivity of MMD supply from Australia.
It is expected that Envirostream’s next MMD shipment to SungEel will take place this month.
