Perth-based advanced materials technology company Lithium Australia has signed an exclusive agreement with China-based BYD Auto Industry Company to provide battery recycling services.

BYD Auto is a subsidiary of major Chinese electric vehicle (EV) manufacturer BYD Company, which sold three million electric and plug-in hybrid electric vehicles (PHEVs) in 2023 and has a 14% share of the Australian EV market as of 2022.

Lithium Australia expects to increase collection volumes of large-format lithium-ion (Li-ion) batteries over the initial three-year contract, given BYD’s production scale.

Lithium Australia CEO and Managing Director Simon Linge said the agreement further accelerates the company’s transformation of its battery collection, which will focus primarily on high-margin, large-format lithium-ion batteries.

“The signing of this groundbreaking agreement, alongside many other exclusive recycling agreements announced recently, is evidence of the successful implementation of our company’s recycling growth strategy,” said Linge.

“We look forward to working with BYD and intend to leverage this momentum to further grow revenue in fiscal 2025.”

Liu Xueliang, General Manager of Asia Pacific Automotive Sales Division of BYD Auto Industry Company, said BYD’s strategic partnership with Lithium Australia is a testament to the company’s commitment to reducing carbon dioxide emissions for a greener future.

Lithium Australia says it remains focused on securing further recycling agreements with leading electric vehicle and energy storage system (ESS) manufacturers to secure the future supply of lithium-ion batteries as part of an integrated circular economy.

Lithium Australia’s battery recycling is carried out through its subsidiary Envirostream, which produces a key battery material, lithium ferrophosphate (LFP), using patented lithium extraction technology.

Envirostream battery recycling technology uses a combination of mechanical and hydraulic separation techniques to recover approximately 95% of the battery materials without the need for incineration.

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