Lithium Australia and BYD sign exclusive recycling deal

Lithium Australia will recycle all end-of-life batteries of BYD's New Energy Vehicles in Australia. The deal has an initial term of three years and can be extended for an additional two years.

Under the agreement, Envirostream Australia, a wholly-owned subsidiary of Lithium Australia, will recycle BYD’s Blade Batteries, which uses LFP chemistry. The press release does not mention how many units the companies expect to be recycled, only that BYD’s cars accounted for about 14 per cent of all New Energy Vehicles sold in Australia in 2023.

Moreover, Envirostream Australia says it “expects to significantly increase large-format lithium-ion battery collection volumes given the scale of BYD Auto” – again without naming any specific figures.

“We are excited to announce the signing of an exclusive recycling agreement with BYD,” says Lithium Australia CEO and Managing Director, Simon Linge. “This milestone achievement is expected to significantly increase our future collection volumes of large-format lithium-ion batteries (LIBs), further accelerating the company’s shift in battery collections mix to be primarily focused on the higher margin large-format LIBs.”

Liu Xueliang, General Mnager of BYD’s Asia Pacific Automotive Sales Division, adds: “As a global pioneer in battery manufacturing, BYD’s strategic partnership with Lithium Australia is a testament to BYD’s commitment to reducing carbon emissions for a greener future and strengthen its leadership in technological innovation in the global automobile industry.”

The company signed a similar deal with Volvo Buses earlier this year, after updating its agreement with with South Korean manufacturer LG Energy Solution in March.

lithium-au.com