Envirostream Battery Recycling To Be Boosted With LG Energy Recycling Agreement In Australia 🔋

Envirostream Battery Recycling 🔋: Envirostream Australia, a subsidiary fully owned by Lithium Australia headquartered in Perth, has recently entered into an exclusive battery recycling agreement with LG Energy Solution. This three-year partnership aims to recycle lithium-ion batteries, specifically those retrieved from electric vehicles (EVs) and energy storage systems (ESS) across Australia. Learn more about this relevant piece of news below. 

Just last week, we talked about the dangers of lithium-ion batteries and their tendency to cause fires in a blog. Whilst we acknowledge the severity of the fire situations in Australia brought about by this type of battery, we also do recognise them as indisposable products that power up most of our everyday-use technology, and therefore still support their proper usage and disposal.

With the disclaimer out of the way, let us talk a bit about recycling batteries in Australia in general. Truthfully speaking, we have the potential to seize a significant economic opportunity by establishing and nurturing a domestic battery recycling industry. This industry has the potential to bolster the nation’s economy by tapping into the valuable resource of recycled batteries, thereby creating jobs and fostering sustainable growth.

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However, we have not been capitalising on that, as unfortunate as it sounds. In fact, Australia recycled only 10 per cent of its lithium-ion battery waste in 2021. Obviously, we should aim to recycle more than this if we want to fully capitalise on the opportunity that battery recycling presents.

This is where Envirostream comes in the mix. Envirostream has recently struck a battery recycling agreement with LG Energy Solution in Australia.  Let us cover everything you need to know about this exciting piece of news below.

Everything you need to know about Envirostream’s battery recycling agreement

As mentioned above, Envirostream Australia, a company owned entirely by Lithium Australia in Perth, has made an exclusive deal with LG Energy Solution. Over the next three years, they’ll be recycling old lithium-ion batteries from electric vehicles and energy storage systems in Australia.

A bit of background on LG…

LG is a major player in the electric vehicle (EV) battery scene, second only to China in terms of production. They hold a significant share of the global market, around 14 per cent, as of 2023.

Experts predict that the demand for batteries used in energy storage systems (ESS) and electric vehicles (EVs) will keep rising, possibly increasing by 10 per cent to 40 per cent every year until 2030.

This uptick in battery usage is likely to create a greater need for recycling services to handle the growing number of used batteries.

Back to Envirostream

This agreement is set to have a significant impact on Envirostream’s efforts to collect more large lithium-ion batteries and recycle them. As a result, the company expects to earn more money from recycling.

They say there are around 6,000 LG Energy Solution large batteries ready to be recycled, and they’re expecting another 5,000 soon. This represents a huge increase, about 140 per cent more than what Envirostream collected in batteries during the fiscal year 2023.

Lithium Australia CEO and Managing Director Simon Linge had this to say about the Envirostream battery recycling development, “We are very excited to announce this new Agreement signed with LG Energy Solution, a world-leading battery manufacturer for EVs and ESS around the globe”.

“Our strategic roadmap identified the importance of signing long-term agreements with Tier-1 EV and ESS manufacturers,” he added. We see agreements of this type as key to moving our recycling operations to being cash flow positive and allowing us to grow our capabilities nationally.”

The new agreement with LG will initially last for three years and replace the old recycling deal Envirostream had with them. During these three years, Envirostream will be the only company allowed to recycle LG lithium-ion batteries in Australia that have been recalled.

More on Envirostream’s battery recycling agreement

Apart from the money Envirostream will make from battery recycling according to the agreement, there’s also a chance for them to earn more by selling mixed metal dust back to LG.

Envirostream, based in Victoria, has a technology that’s able to recover 95% of the resources from old batteries. These resources are then turned into raw materials for new batteries, creating a cycle of use known as a circular economy.

Linge mentioned that the new agreement with LG offers Envirostream a big chance in the market.

“Signing exclusive contracts with leading battery manufacturers is a core part of Envirostream’s national growth strategy,” he said, also mentioning that the company is working its way to adjust the agreement to win new market-leading clients.

“We look forward to announcing further agreements with other tier-1 manufacturers,” he said.

Waster’s final thoughts

This news, to us here at Waster, highlights a significant agreement between Envirostream Australia and LG Energy Solution, focusing on battery recycling.

It’s certainly a big step towards boosting recycling efforts and revenue. With LG’s leading position in EV battery production and the expected growth in battery sales, there’s a clear opportunity for recycling services to meet the increasing demand.

Waster, of course, hopes that everything goes well with this development. We are positive that proper measures are reviewed and intact so everything goes well without a hitch.

Overall, it’s a positive move towards sustainability and economic growth.

What do you think about the situation? Care to share? If so, we would like to know your thoughts!

Comment down below what you think.

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