Livium Secures Sumitomo Partnership to Advance Black Mass Battery Recycling

Livium Lands Sumitomo Partnership, Opening a Gateway to Global Battery Materials Markets

The Livium Sumitomo black mass partnership in battery recycling marks a significant strategic development for Livium Ltd (ASX: LIT), which has signed a non-binding Memorandum of Understanding (MOU) with Sumitomo Corporation — one of Japan's most powerful integrated trading and business investment companies — to explore the potential sale and purchase of black mass and broader collaboration across Livium's black mass manufacturing line.

The agreement, executed through Livium's wholly owned subsidiary Envirostream Australia Pty Ltd, signals growing international appetite for localised, circular battery materials supply chains. Consequently, it positions Livium as a serious player in the evolving global battery recycling economy.

Why This Partnership Matters

Sumitomo Corporation is no ordinary counterparty. As a Fortune Global 500 company headquartered in Tokyo and founded in 1919, Sumitomo operates across 125 locations in 63 countries and regions, employs approximately 83,430 group employees, and maintains deep, established relationships across battery materials, energy transformation, mineral resources, and downstream supply chains.

For Livium, this engagement represents potential access to demand channels and downstream markets that would be difficult to replicate independently. Furthermore, the scope of discussions goes beyond a conventional black mass supply arrangement. The parties are exploring a broader opportunity spanning:

• Battery collection and logistics
• Battery reuse and processing
• Downstream refining pathways
• A scalable, commercially sustainable circular supply chain for EV batteries and critical minerals across Oceania

This is not simply a trading relationship — it is a framework for building regional battery recycling infrastructure at scale.

What Is Black Mass — and Why Is It So Valuable?

Black mass is the term used for the material produced when lithium-ion batteries are shredded and processed. It contains a concentrated mixture of valuable battery metals including lithium, cobalt, nickel, and manganese — the same critical minerals that feed the production of new battery cells.

Why it matters to investors

• Black mass sits at the heart of the battery recycling economy, serving as the primary feedstock for recovering critical minerals from end-of-life batteries
• As electric vehicle (EV) adoption accelerates globally, the volume of spent batteries requiring responsible end-of-life processing will grow substantially
• Producers of high-quality, traceable black mass — like Envirostream — occupy a strategically important position in the supply chain between battery collection and downstream refining
• Traceability and compliance standards are increasingly demanded by manufacturers and regulators, raising the bar for entry and rewarding established, certified operators

Glossary of Key Terms

Black Mass — The powdered material recovered from shredded lithium-ion batteries, rich in critical minerals including lithium, cobalt, nickel, and manganese.

MOU (Memorandum of Understanding) — A non-binding agreement between parties that outlines the intent to work towards a formal commercial arrangement.

Off-take Agreement — A binding contract in which a buyer agrees to purchase a specified quantity of a producer's output, providing revenue certainty.

Circular Supply Chain — A system designed to recover and reuse materials from end-of-life products, reducing waste and reliance on virgin resource extraction.

Envirostream — Livium's wholly owned subsidiary and Australia's leading lithium-ion battery recycler.

Building on a Commercial Foundation That Is Already in Place

The Sumitomo MOU does not arrive in isolation. Livium enters this partnership with an existing commercial base that provides meaningful near-term revenue visibility.

The binding agreement with SungEel HiTech provides contracted volume certainty for Livium's black mass output through to June 2027, underpinning near-term commercial operations. In addition, the involvement of Sumitomo as a potential partner works to diversify Livium's counterparty base and extend its commercial reach into new global markets.

Together, these arrangements reflect a deliberate strategy: secure near-term offtake certainty whilst building the longer-term commercial relationships needed to scale.

The Broader Strategic Vision — A Circular Battery Ecosystem Across Oceania

"Discussions under the MOU extend beyond a traditional black mass supply arrangement and are focused on the potential development of a broader battery collection, reuse, and recycling ecosystem across Oceania."
— Simon Linge, CEO and Managing Director, Livium Ltd

This statement from CEO Simon Linge captures the full ambition embedded in the Livium Sumitomo black mass partnership in battery recycling. Rather than treating this as a point-in-time sales arrangement, both parties appear to be exploring what a fully integrated regional ecosystem could look like — from the moment a battery reaches end-of-life through to the recovery of critical minerals for re-entry into new battery production.

The strategic logic is straightforward

1. EV adoption is accelerating — as more electric vehicles enter service, the future volume of end-of-life batteries requiring responsible processing will grow significantly
2. Infrastructure is needed — responsible battery collection, processing, and critical mineral recovery infrastructure across Oceania does not yet exist at meaningful scale
3. Envirostream is positioned early — as Australia's leading lithium-ion battery recycler with established operations, compliance frameworks, and quality black mass output, Livium is well placed to anchor this emerging ecosystem
4. Sumitomo brings global reach — with established downstream customer relationships and a global supply chain network, Sumitomo offers the kind of market access that can transform a domestic operation into a globally connected one

Operating Standards That Meet Global Expectations

A recurring theme in Livium's commercial positioning is the emphasis on quality, traceability, and compliance. CEO Simon Linge specifically highlighted that Livium's operating model is built around five core principles:

• Traceability — the ability to track battery materials through the supply chain
• Auditability — transparent processes that can be independently verified
• Capability — technical and operational competency to produce high-quality black mass
• Compliance — meeting regulatory and industry standards
• Risk management — safe, accountable practices that protect all stakeholders

These standards are increasingly relevant to global manufacturers and downstream customers operating under tightening ESG frameworks and regulatory expectations. However, it is worth noting that the ability to demonstrate traceability and compliance is becoming a competitive advantage, not simply a hygiene factor.

Next Steps and Upcoming Catalysts

The MOU establishes a formal framework for both parties to progress discussions. The immediate focus is on moving from a non-binding arrangement towards definitive agreements.

Investors should watch for announcements regarding the progression of definitive agreements with Sumitomo and any updates to the broader commercial strategy, including offtake diversification and scale-up of black mass production capacity.

Why Investors Should Keep Livium on Their Radar

The Livium Sumitomo black mass partnership in battery recycling captures several themes that resonate strongly with investors focused on the energy transition and critical minerals sectors:

• Global validation — the engagement of a Fortune Global 500 counterparty with deep battery materials expertise signals external recognition of Livium's position and capabilities
• Diversifying commercial base — adding Sumitomo alongside the existing SungEel HiTech off-take agreement reduces counterparty concentration and broadens Livium's market access
• Strategic scope — the discussions span the full battery lifecycle across Oceania, giving Livium potential exposure to a much larger commercial opportunity than black mass sales alone
• First-mover positioning — as Australia's leading lithium-ion battery recycler, Livium is building a head start in infrastructure, relationships, and operational know-how at a time when end-of-life battery volumes are set to grow considerably
• Expansion into adjacencies — beyond battery recycling, Livium is also expanding into solar panel recycling and rare earth element recovery, broadening the commercial platform further

Key Takeaway

"Livium Ltd has positioned itself as a foundational player in Australia's emerging circular battery economy, with an operating model built on quality, compliance, and traceability. The MOU with Sumitomo Corporation — one of the world's most globally connected trading companies — opens potential access to downstream battery materials markets and signals the kind of international credibility that supports a much larger long-term commercial ambition. With definitive agreements under negotiation and a contracted off-take already in place, investors should watch Livium closely as it works to scale production and expand its role across the Oceania battery materials supply chain."

Want to Know More About Livium's Battery Recycling Strategy?

Livium Ltd (ASX: LIT) is building a foundational position in Australia's circular battery economy — backed by contracted off-take, a Fortune Global 500 partnership, and a vision to anchor the Oceania battery materials supply chain. To learn more about Livium's projects, commercial strategy, and investment case, visit the company's investor hub at investorhub.liviumcorp.com.