Posted on 07 Jun 2024
Lithium Australia has announced its subsidiary Envirostream has inked a battery recycling agreement with the buses arm of Volvo Group Australia.
The initial three-year agreement designates Lithium Australia as the exclusive recycler of end-of-life lithium-ion batteries from Volvo’s electric and hybrid bus fleet, Kallanish understands.
The deal comes as part of Lithium Australia’s strategy to increase the collection of large-format lithium-ion batteries, such as those from electric vehicles and energy storage systems (ESS), which it says offer higher margins. As their adoption grows, the company expects the supply of large-format batteries for recycling to “accelerate exponentially.”
Volvo supplies electric and hybrid buses to users across Australia, including the Public Transport Authority in Western Australia and Transdev in Queensland. However, the specifics of the deal with Volvo, including supply volumes, have not been disclosed.
“The agreement validates our strategy to target large-scale OEMs [original equipment manufacturers] and ESS manufacturers to grow our share of the high margin, large-format battery collection volumes,” says Simon Linge, Lithium Australia’s ceo. “Increasing our capability and growing volumes are strong drivers for the company reaching cashflow breakeven within the recycling business, which we aim to achieve in the near term.”
In March, Envirostream inked a battery recycling agreement with Hyundai Glovis, the logistics and distribution unit of the Hyundai Motor Group. The same month, the company also signed an agreement with LG Energy Solutions to recycle its recalled lithium-ion batteries in Australia.
Source:Kallanish
