Lithium Australia subsidiary Envirostream has signed a three-year mixed metal dust (MMD) off-take agreement with SungEel HiTech, a South Korean battery recycler.
SungEel HiTech has been a Lithium Australia customer since 2020 and has purchased more than 300 tonnes of MMD to date.
It also signed a memorandum of understanding (MoU) with Lithium Australia in March, which intended to progress discussions around an MMD off-take agreement.
That off-take agreement has now been signed two weeks earlier than anticipated and will see SungEel HiTech purchase at least 60 per cent of Lithium Australia’s annual MMD production.
“SungEel has been a longstanding customer and we are excited to expand our strong commercial relationship,” Lithium Australia managing director and chief executive officer Simon Linge said.
“The signing of this MMD off-take agreement represents a core component of our recycling growth strategy, given its synergistic value with the company’s rapidly growing large-format LIB (lithium-ion battery) collection volumes and MMD production.
“This off-take agreement also highlights the strong market demand for MMD and supports the expected uplift in future production volumes.”
The off-take agreement takes effect on July 1 2024.
Lithium Australia and SungEel HiTech have also commenced discussions regarding a joint development agreement, which will focus on upgrading recycling equipment and expanding Envirostream’s total processing capacity.
The joint development agreement is expected to be finalised sometime this year.
“We are excited to continue building upon this momentum while aiming to achieve sustainable profitability within our recycling business in the near-term,” Linge said.
Last week, Envirostream locked in an exclusive agreement with the buses arm of Volvo Group Australia to recycle end-of-life lithium-ion batteries from its electric and hybrid bus fleet.
The company also has exclusive recycling agreements with Hyundai Glovis and LG Energy Solution.
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