Lithium Australia signs battery recycling agreement with SungEel

Envirostream Australia, a subsidiary of Lithium Australia (ASX: LIT), has signed a three-year mixed metal dust (MMD) offtake agreement with SungEel HiTech for battery recycling.

Under the agreement, SungEel will purchase a minimum of 60% of Lithium Australia’s annual MMD production, subject to certain minimum quality requirements.

SungEel has been a customer of Lithium Australia since 2020 and has purchased more than 300t of MMD, reflecting the growing demand for recycled materials for use in battery manufacturing processes.

SungEel recently opened the third hydro centre in South Korea which is the largest litium ion battery recycling plant in the world and can input 20,000t of MMD in phase one.

Lithium Australia managing director and chief executive Simon Linge says the company is pleased to sign the offtake agreement.

“The signing of this MMD offtake agreement represents a core component of our recycling growth strategy, given its synergistic value with the company’s rapidly growing large-format lithium ion battery collection volumes and MMD production,” he said.

“This offtake agreement also highlights the strong market demand for MMD and supports the expected uplift in future production volumes.

“We are excited to continue building upon this momentum while aiming to achieve sustainable profitability within our recycling businesses in the near-term.”

Following the signing of the agreement, Lithium Australia and SungEel have begun discussions on a joint development agreement which focuses on upgrading recycling equipment and expanding the total processing capacity.