Livium Ltd
Livium Locks In CATL Deal, Cementing Its Place at the Heart of Australia's Battery Recycling Economy
The Livium CATL battery recycling deal in Australia and New Zealand marks a significant commercial milestone for ASX-listed Livium (ASX: LIT). Its wholly owned subsidiary, Envirostream Australia, has executed a Framework Contract for Procurement of Recycling Services with Contemporary Amperex Technology (Hong Kong) Limited — a subsidiary of CATL, the world's largest lithium-ion battery manufacturer.
The agreement formalises an already active working relationship and positions Envirostream as a structured, long-term downstream recycling partner for the global battery giant across both markets.
When big ASX news breaks, our subscribers know first
What Has Been Announced
Envirostream has entered into a formal Framework Agreement with CATL HK that establishes the commercial and operational structure under which Envirostream will deliver battery recycling services. Importantly, this is not a new commercial relationship from scratch — Envirostream has previously provided recycling services to CATL on a purchase order basis.
What this agreement does is formalise that collaboration, creating a repeatable, structured platform for ongoing engagement.
Key terms of the agreement at a glance:
| Feature | Detail |
|---|---|
| Parties | Envirostream Australia and CATL HK |
| Services Covered | Battery collection, logistics, dismantling, black mass processing, certification, destruction reporting |
| Geographic Scope | Australia and New Zealand |
| Agreement Term | Initial term through to 15 May 2029 |
| Volume Commitments | None — services delivered under individual purchase orders |
| Exclusivity | Non-exclusive |
| Pricing | Determined on a case-by-case basis per purchase order |
Services are scoped to cover the full recycling chain — from collection and logistics through to the production of black mass and the provision of regulatory-compliant certification and destruction reporting.
"Formalising our relationship with CATL is an important milestone for Livium. CATL is the global leader in lithium-ion battery manufacturing, and this Agreement reflects their confidence in Envirostream's recycling capabilities and operational standards."
— Simon Linge, CEO and Managing Director, Livium
Who Is CATL and Why Does This Partnership Matter?
For investors less familiar with the global battery landscape, understanding who CATL is provides important context for why this agreement carries weight.
Contemporary Amperex Technology Co., Limited — commonly known as CATL — is headquartered in Ningde, China, and is the world's number one manufacturer of lithium-ion batteries by volume. The company supplies battery systems to major global automotive and energy storage companies, playing a central role in the global energy transition. Its reach spans electric vehicles, grid-scale energy storage, and consumer electronics supply chains.
For a relatively small ASX-listed recycler like Livium to have an established, now formally contracted relationship with a company of CATL's stature is a meaningful commercial signal. It suggests that Envirostream's operational capabilities — its ability to safely handle, process, and certify end-of-life battery materials at a compliance level acceptable to a tier-one global manufacturer — have been independently validated by one of the most demanding customers in the industry.
Understanding Black Mass: A Key Concept for Battery Recycling Investors
One of the core services Envirostream provides under this agreement is the processing of end-of-life batteries into what the industry calls black mass.
What is black mass?
Black mass is the dark, powdery material produced when lithium-ion battery cells are shredded and processed. It contains a valuable mixture of battery-critical materials, including:
- Lithium
- Cobalt
- Nickel
- Manganese
- Graphite
Why does it matter to investors?
Black mass sits at the upstream end of the battery materials recovery chain. Once produced, it can be further refined to extract and recover the individual metals contained within — metals that are critical inputs for new battery manufacturing. As the volume of end-of-life lithium-ion batteries grows globally, black mass production becomes an increasingly strategic and commercially valuable activity.
For Livium, the ability to produce black mass to a standard acceptable to CATL — one of the world's most sophisticated battery manufacturers — reflects operational capability that is not easily replicated.
Glossary of Relevant Terms
| Term | Definition |
|---|---|
| Black Mass | Shredded and processed battery material containing recoverable critical minerals including lithium, cobalt, and nickel |
| Framework Agreement | A commercial contract that sets out terms and conditions under which future purchase orders will be placed, without committing to specific volumes upfront |
| Purchase Order | An individual order placed under the framework agreement, specifying the scope, volume, and pricing for a specific recycling job |
| Circular Battery Economy | The concept of recovering materials from end-of-life batteries and reintegrating them into new battery production, reducing reliance on primary mining |
| End-of-Life Battery Management | The compliant collection, processing, and disposal or recycling of batteries that have reached the end of their usable life |
The Strategic Logic Behind This Agreement
The CATL agreement is consistent with Livium's broader strategy of partnering with leading global battery manufacturers to support compliant end-of-life battery management. As the volume of lithium-ion batteries deployed in Australia grows — across electric vehicles, residential and grid-scale energy storage, and consumer electronics — the downstream recycling requirement grows in parallel.
Several strategic dimensions make this agreement noteworthy:
Relationship formalisation, not relationship initiation. Envirostream has already been delivering services to CATL. The agreement converts a transactional, purchase-order-by-purchase-order arrangement into a structured commercial framework, reducing friction and providing a clearer basis for scaling activity as volumes increase.
Geographic scope across Australia and New Zealand. The agreement supports CATL's regional operations and end-of-life battery management requirements across both markets, positioning Envirostream as the preferred recycling partner across the broader Australasian footprint.
Term through to May 2029. A multi-year initial term provides commercial continuity and a runway for the relationship to deepen as battery volumes in the region continue to grow.
Trust from a global benchmark customer. CATL's willingness to execute a formal framework with Envirostream — covering certification and regulatory reporting obligations — reflects that Envirostream's compliance and operational standards meet requirements set by the world's leading battery manufacturer.
Positioning in the circular battery economy. Furthermore, the agreement reinforces Livium's role not just as a waste handler, but as a critical node in the battery supply chain — one that enables the recovery and reintegration of valuable materials back into battery production.
What Comes Next
The agreement itself does not carry minimum volume commitments, meaning near-term revenue from this specific arrangement will be determined by the purchase orders placed under it. However, the framework creates the commercial infrastructure for Envirostream to respond efficiently to CATL's recycling requirements as they arise across the region.
Looking ahead, investors should watch for:
- Purchase order activity under the agreement as CATL's regional battery volumes increase
- Expansion of Envirostream's operational capacity to meet growing recycling demand
- Progress on Livium's adjacent expansion into rare earth element recycling, solar panel recycling, and black mass processing — all referenced as part of the company's broader strategy
- Additional framework agreements with other global battery manufacturers, consistent with Livium's stated strategy of building a portfolio of trusted manufacturer partnerships
The next major ASX story will hit our subscribers first
The Investment Case: Why This Agreement Reinforces Livium's Position
Livium describes itself as Australia's leading battery recycler through Envirostream — a profitable business focused on recovering valuable materials from end-of-life batteries. The Livium CATL battery recycling deal in Australia and New Zealand adds a meaningful layer to an already compelling investment narrative.
Key investment considerations
Tier-one customer validation. A formal agreement with CATL — the world's largest battery manufacturer — serves as third-party endorsement of Envirostream's capabilities at the highest commercial standard.
Leveraged to structural growth. The volume of end-of-life batteries entering the Australian market is expected to grow materially over the coming decade as early EV and energy storage deployments reach end of life. Envirostream is, consequently, structurally positioned to benefit from this trend.
Profitable foundation with expansion optionality. Envirostream is already described as a profitable business, giving Livium a revenue-generating base from which to pursue adjacent opportunities including rare earth recycling, solar panel recycling, and black mass processing.
Circular economy positioning. As sustainability requirements on battery manufacturers tighten globally, the ability to demonstrate certified recycling and destruction reporting becomes increasingly valuable — and Envirostream has built this capability.
"Livium has formalised a multi-year recycling services framework with CATL — the world's number one battery manufacturer — a development that validates Envirostream's operational credentials and positions the company as a critical partner in Australia and New Zealand's circular battery economy. With the agreement running through to May 2029 and structural battery volume growth ahead, investors should watch Livium closely as its recycling platform scales to meet rising demand."
Ready to Invest in Australia's Battery Recycling Future?
Livium (ASX: LIT) has secured a formal multi-year framework agreement with CATL — the world's largest lithium-ion battery manufacturer — validating Envirostream's position as a critical recycling partner across Australia and New Zealand through to May 2029. With a profitable operational base, tier-one customer endorsement, and structural battery volume growth ahead, Livium represents a compelling opportunity for investors seeking exposure to the circular battery economy. To learn more about Livium, Envirostream, and the company's growth strategy, visit the Livium Investor Hub.
