Livium Ltd Battery Recycling Expansion Strengthens Revenue Position

Livium Delivers Strong Battery Recycling Revenue with Strategic Technology Expansion

The Livium Ltd battery recycling expansion has reached a significant milestone with the release of Q2 FY26 quarterly results, demonstrating the company's successful transition to a comprehensive clean energy waste recycling platform. The quarter delivered $1.3 million in revenue with $0.5 million gross profit from battery recycling operations, whilst significantly expanding the company's technology portfolio through new partnerships and intellectual property acquisitions.

The report confirms Livium's strategic pivot toward becoming Australia's leading battery recycler while building adjacent capabilities in rare earth elements (REE) and solar panel recycling. With $5.7 million in cash following a successful capital raise, the company is well-positioned to execute its growth strategy across multiple recycling verticals.

Battery Recycling Operations Show Resilience Despite Volume Mix Challenges

Livium's core battery recycling business through subsidiary Envirostream demonstrated operational resilience, processing 197 tonnes of batteries during the quarter, with 141 tonnes (72%) comprising lithium-ion batteries. Revenue of $1.28 million was marginally below the prior corresponding period, whilst gross margins compressed to 40% due to an unfavourable battery mix.

Key Operating Metrics – Q2 FY26:

The margin compression primarily reflects a shift in battery mix, with large format lithium-ion batteries comprising only 16% of collections versus 63% in the prior corresponding period. Small format batteries, which require higher processing costs per unit, increased to 56% of the mix from 24% previously.

Management Commentary:
"Q2 FY26 marked an important step in Livium's transition to a recycling-led growth platform. During the quarter, we delivered solid operational performance in battery recycling and strengthened our technology portfolio through new IP and university partnerships." – Simon Linge, CEO

Despite the quarterly challenges, management emphasised that volume delays are primarily timing-related, with contracted customers adjusting to Australian regulatory requirements and project-based decommissioning schedules. Furthermore, the Livium Ltd battery recycling expansion continues to gain momentum through strategic customer acquisitions.

Strategic Customer Wins Validate Market Position

The quarter delivered significant customer development wins that validate Envirostream's market-leading position:

• Synergy Partnership: Secured contract with Western Australia's largest electricity generator and retailer for processing the Alkimos Community Battery
• Fisher & Paykel Agreement: Contracted with the luxury appliance brand for their new energy storage battery recycling in Australia
• Market Penetration: Continued expansion across grid-scale energy storage, residential systems, and electric vehicle segments

The company's diversified customer approach targets both baseload volumes and larger project opportunities, positioning it to capitalise on Australia's accelerating energy storage deployment. In addition, these partnerships strengthen the foundation for the ongoing Livium Ltd battery recycling expansion across multiple market segments.

Forward Volume Outlook:

Long-term projections show substantial growth potential, with end-of-life battery volumes expected to reach 450+ kilotonnes by 2045, driven by:

• Energy Storage Systems (ESS) comprising 60%+ of future volumes
• Electric Vehicle (EV) battery recycling contributing 30%+
• Strong policy support through programmes like Cheaper Home Batteries

Technology Portfolio Expansion Creates Multiple Growth Avenues

Exclusive Rare Earth Elements Rights

Livium executed binding agreements with University of Melbourne securing exclusive global rights to microwave-assisted leaching technology for REE extraction. Initial testwork results released in January 2026 demonstrated:

• 90%+ leach efficiencies for Neodymium (Nd) and Praseodymium (Pr)
• Strong repeatability across larger sample sizes
• Optimisation across key process parameters completed

Technical Significance:
Rare earth elements are critical components in permanent magnets used in wind turbines, electric vehicle motors, and electronic devices. Current global supply chains are heavily concentrated in China, making domestic recycling capabilities strategically valuable.

Solar Panel Recycling Initiative

The company advanced its photovoltaic (PV) recycling capabilities through partnerships with Won Kwang S&T and Iondrive, collecting 600 end-of-life solar panels for processing trials. This initiative targets recovery of silver and other critical materials from Australia's growing solar panel waste stream.

Intellectual Property Protection

IP Australia granted Livium a standard patent protecting its wet shredding and separation process for lithium-ion battery recycling, providing protection through 2041 and formally acknowledging the process's safety benefits including thermal-event mitigation. Consequently, this patent strengthens the competitive position of the Livium Ltd battery recycling expansion strategy.

Hub and Spoke Strategy Enables Scalable Growth

Livium is implementing a strategic "Hub and Spoke" operating model designed to optimise collection efficiency and processing capacity:

Victorian Hub Development:

• Advanced lease negotiations for centralised processing facility
• 24/7 operational capability with immediate capacity expansion potential
• 3x processing capacity expansion capability for medium-term growth
• Completion targeted by March 2026

Regional Spokes:

• Western Australia identified as first regional collection and pre-processing hub
• $850,000 government grant previously secured to support WA operations
• Focus on collection, sorting, discharge, and safe storage before Hub transport

This model enables cost-effective national coverage whilst maintaining centralised processing expertise and economies of scale. However, the strategic implementation requires careful coordination to maximise the benefits of the Livium Ltd battery recycling expansion across multiple jurisdictions.

Understanding Black Mass: The Gateway to Critical Materials Recovery

Black mass represents the valuable powder produced from shredding lithium-ion batteries, containing lithium, cobalt, nickel, and manganese in concentrated form. This material serves as the feedstock for recovering these critical metals, which can then be used to manufacture new batteries.

For investors, black mass processing represents a higher-value segment of the battery recycling value chain. Rather than simply collecting and processing batteries, companies that can efficiently extract and purify these materials capture significantly more value from each tonne processed.

Livium's expansion into black mass processing positions it to move beyond collection services toward becoming a critical materials supplier to battery manufacturers. The strategic importance becomes clear when considering that lithium carbonate prices have exceeded US$70,000 per tonne, whilst cobalt has traded above US$80,000 per tonne in recent years, making efficient recovery economics highly attractive.

Strong Financial Position Supports Growth Strategy

The successful $4.5 million placement completed during the quarter strengthened Livium's balance sheet, with investor demand exceeding 200% of the final placement value. Key financial highlights include:

Current Financial Position:

• $5.7 million cash balance as at 31 December 2025
• $1.4 million R&D tax incentive rebates received during quarter
• 408+ quarters of funding available at current operating cash usage
• Placement priced at 15% discount to 5-day VWAP, demonstrating strong investor support

Use of Proceeds:
• Expand national lithium-ion battery collections
• Relocate and consolidate processing operations into centralised Hub
• Advance REE, PV, and black mass processing initiatives
• Support strategic partnerships and technology development

Investment Thesis: Multi-Vector Clean Energy Recycling Platform

Livium has positioned itself as the leading player in Australia's emerging clean energy waste recycling sector, with significant competitive advantages across multiple verticals:

Core Strengths:

1. Market Leadership: Envirostream's established position as Australia's leading lithium-ion battery recycler
2. Technology Portfolio: Exclusive rights to advanced REE extraction technology and proprietary battery processing IP
3. Strategic Partnerships: University of Melbourne collaboration and international processing agreements
4. Regulatory Tailwinds: Growing policy support for domestic critical materials recycling
5. Scalable Infrastructure: Hub and Spoke model enabling efficient national expansion

Growth Catalysts:

• Accelerating battery deployment across energy storage and electric vehicles
• China's export controls creating demand for alternative REE supply chains
• Australia's growing solar panel replacement cycle creating new waste streams
• Government support for domestic critical materials processing capabilities

Financial Trajectory:
Current operations demonstrate $5+ million annual revenue run-rate from battery recycling alone, with REE and solar recycling representing potentially larger addressable markets as these waste streams mature. For instance, the ongoing expansion validates the long-term potential of the clean energy recycling sector.

Why Investors Should Follow Livium

The convergence of Australia's energy transition, critical materials supply chain reshoring, and growing waste streams from renewable energy infrastructure creates a compelling multi-decade growth opportunity. Livium's strategic positioning across battery, REE, and solar recycling provides multiple pathways to value creation:

Near-term Catalysts (2026):

• Victorian Hub completion enabling processing capacity expansion
• University of Melbourne REE technology commercialisation progress
• Solar panel processing validation with Won Kwang S&T
• Western Australia Spoke establishment with government grant support

Medium-term Potential (2027-2030):

• Hub and Spoke network expansion across additional states
• Commercial-scale REE extraction operations
• Black mass processing capability development
• Strategic partnerships or M&A opportunities in adjacent markets

Long-term Value Creation (2030+):

• Participation in Australia's 450+ kilotonne end-of-life battery market
• Critical materials supply to domestic battery manufacturing
• Regional export opportunities for processed materials
• Technology licensing potential across international markets

Key Takeaway:
Livium has established itself as Australia's leading clean energy waste recycling platform, with exclusive technology rights and strategic partnerships positioning it to capture value from multiple growing waste streams. With strong financial backing and clear operational momentum, the company represents a compelling exposure to the intersection of Australia's energy transition and critical materials security.

The company's diversified approach across battery, REE, and solar recycling creates multiple value creation pathways whilst reducing dependence on any single market segment. For investors seeking exposure to the clean energy transition's circular economy opportunities, Livium offers a unique combination of established operations, proprietary technology, and strategic market positioning.

Interested in Livium's Multi-Vector Recycling Opportunity?

With exclusive rare earth technology rights, a scalable Hub and Spoke expansion strategy, and Australia's leading battery recycling position, Livium is uniquely positioned to capitalise on the growing clean energy waste opportunity. The company's diversified approach across battery, REE, and solar recycling creates multiple pathways for value creation as Australia's energy transition accelerates. To explore Livium's investment opportunity and access detailed company information, visit their dedicated investor hub to discover how this established recycling platform is building Australia's critical materials processing capabilities.