Lithium Australia (LIT) has entered a three-year agreement with BYD Auto to provide battery recycling services for its new energy vehicles in Australia. Under the deal, Lithium Australia will collect and recycle BYD’s end-of-life lithium iron phosphate (LFP) batteries, in exchange for a service fee. This partnership aligns with Lithium Australia’s strategy to increase its recycling capacity for large-format lithium-ion batteries.
Volume Growth and Strategic Focus
Lithium Australia’s CEO, Simon Linge, highlighted that BYD’s market size would significantly boost the company’s 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,” Linge said. He also emphasized that this partnership will drive further growth in the company’s collection efforts in the new financial year.
Recycling and Profit Milestones
Lithium Australia continues to prioritize signing agreements with electric vehicle and energy storage system manufacturers to secure a steady supply of batteries for recycling. The company reported operating cash profits following a maiden profit of $500,000 in Q4 FY24. During the same quarter, Lithium Australia recycled a total of 445 tonnes of batteries, with a record 242 tonnes of large-format lithium-ion batteries, marking a 392% increase compared to the previous period.
BYD’s Role in Battery Innovation
BYD Auto, a leader in battery technology for over 20 years, invented the revolutionary blade battery using LFP as the cathode material. Known for its safety, durability, and performance, BYD’s blade battery has become a key part of its rapid market growth in Australia. Since entering the Australian market in 2022, BYD now holds about 14% of the domestic new energy vehicle market share.
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