How Livium Ltd Tackles Solar Waste Through Korean Partnership

How Livium Ltd Tackles Solar Waste Through Strategic Korean Partnership Livium (ASX: LIT) has announced a strategic partnership with South Korean solar recycling specialist Won Kwang S&T to address Australia's rapidly growing solar panel waste problem, positioning itself at the forefront of a burgeoning industry. Partnership Set to Capture Emerging Solar Recycling Market Livium has signed a Memorandum of Understanding (MOU) with Won Kwang S&T to collaborate on solar panel recycling in Australia, with both companies now working toward a binding joint development agreement. This strategic partnership will expand the recycling capabilities of Livium's wholly owned subsidiary Envirostream Australia into the solar panel sector. The collaboration will unfold in three phases: Initial export of collected Australian photovoltaic modules to Won Kwang S&T's South Korean facilities Partial dismantling of panels in Australia before shipping to South Korea Establishment of a joint venture to build and operate an Australian PV recycling plant using Won Kwang S&T's technology Livium will receive service fees from Won Kwang S&T based on fair market value and cost-recovery principles, to be agreed upon at each phase. Australia's Solar Waste Challenge Represents Major Opportunity Australia faces a mounting crisis in solar panel disposal, creating both an environmental challenge and a significant business opportunity. The scale of the problem is substantial: Australia is projected to generate over 90,000 tonnes of solar panel waste annually by 2035 Currently, only about 10% of decommissioned solar panels are being recycled A national product stewardship scheme is expected imminently, likely to ban panels from landfill The Australian PV recycling market is projected to grow from US$3.5 million in 2024 to US$10.8 million by 2033 Globally, the solar panel recycling market is expected to expand from US$492.8 million in 2024 to over US$2.67 billion by 2034 "This partnership with Won Kwang S&T is a step forward in our strategy to expand our recycling capabilities into adjacent clean energy waste opportunities. It allows us to leverage our existing infrastructure, customer relationships, and operational competencies to address the rapidly growing problem of solar panel waste." – Simon Linge, CEO and Managing Director, Livium What Is Photovoltaic (PV) Recycling? Photovoltaic recycling involves the recovery of valuable materials from end-of-life solar panels. These panels typically contain glass, aluminum, silicon, copper, and small amounts of silver, lead, and other metals. The recycling process generally involves: Removal of aluminum frames and junction boxes Separation of glass from the silicon cells Recovery of metals through various chemical and mechanical processes Repurposing of recovered materials in new manufacturing When properly executed, PV recycling can recover up to 95% of the materials in solar panels, significantly reducing environmental impact while recovering valuable resources. The Components of Solar Panels Solar panels are complex assemblies containing various materials that can be recovered and reused: Component Typical Percentage by Weight Recyclability Glass 70-75% High Aluminum frame 10-15% High Encapsulant (EVA) 6-8% Moderate Silicon cells 3-5% Moderate Backsheet 2-3% Low Junction box/cables 1-2% High Silver, copper, lead, tin <1% High (valuable) The high glass and aluminum content makes recycling economically viable, while the trace precious metals provide additional value recovery potential. Current Recycling Challenges PV recycling faces several technical and economic challenges: Complex lamination of materials requiring specialised separation techniques Potential hazardous materials including lead solder and small amounts of cadmium in some panel types High transportation costs due to panel bulk and weight Relatively low volumes currently available for recycling (though rapidly increasing) Limited domestic processing facilities These challenges highlight why strategic partnerships like Livium's arrangement with Won Kwang S&T are essential to developing viable recycling solutions. Livium's Strategic Approach to PV Recycling Livium's entry into solar panel recycling represents a natural extension of its existing capabilities and aligns with its June announcement to pursue adjacent circular economy opportunities. The company is well-positioned for success due to several key advantages: Established "fee-for-service" commercial model that can be applied to solar panel recycling Existing expertise in hazardous material collection and pre-processing Strong relationships with customers already seeking solutions for solar panel disposal Asset-light approach through technology partnership minimises initial investment risk This phased, low-risk entry strategy allows Livium to diversify its revenue streams while establishing itself in a rapidly growing sector of the clean energy waste market. Phased Implementation Strategy Livium's three-phase approach to entering the solar recycling market demonstrates careful planning: Phase 1: Export Model Collect end-of-life panels from Australian sources Export intact panels to Won Kwang S&T's facilities in South Korea Establish collection logistics and market demand Minimal capital investment required Phase 2: Partial Processing Establish basic dismantling capabilities in Australia Remove aluminum frames and junction boxes domestically Export partially processed panels to South Korea Begin developing local expertise and infrastructure Phase 3: Full Domestic Recycling Establish joint venture with Won Kwang S&T Build and operate Australian-based recycling facility Implement complete end-to-end recycling capability Maximise value recovery and minimise environmental impact This graduated approach allows Livium to test the market while building capabilities progressively, reducing risk while establishing a foothold in the emerging industry. Why This Partnership Matters for Australia's Clean Energy Future The Livium-Won Kwang S&T partnership addresses a critical gap in Australia's renewable energy infrastructure. While Australia has been a world leader in solar adoption, the end-of-life management of these systems has lagged behind. Key challenges in the Australian market include: Recycling costs currently six times higher than landfilling Limited onshore markets for recycled materials like glass Regulatory changes including amendments to the Basel Convention restricting solar waste export Through this partnership, how Livium Ltd tackles solar waste is positioning itself to capitalise on regulatory changes that will drive demand for domestic solar panel recycling solutions. "Partnering with Livium, a leading recycler of clean energy waste, is a logical step in our growth strategy. Australia has been identified as a key growth jurisdiction for Won Kwang S&T, and this collaboration gives us the opportunity to further test and optimise our PV recycling technology, which is essential before a broader rollout." – Sang Hun Lee, CEO & Founder, Won Kwang S&T Australia's Solar Adoption Context Australia's exceptional solar adoption creates both the problem and opportunity that Livium is addressing: One of the highest per-capita rates of rooftop solar installation globally Over 3 million solar PV installations across the country Accelerating adoption rate creating future waste streams First-generation installations now reaching end-of-life stage Limited domestic recycling infrastructure currently available This combination of factors makes Australia an ideal market for establishing early leadership in solar panel recycling. Why Investors Should Watch Livium's Solar Recycling Venture Livium's expansion into solar panel recycling represents a compelling investment case for several reasons: First-mover advantage: By establishing early capabilities in Australia's nascent solar recycling market, Livium is positioning itself as a leader in a sector poised for substantial growth. Revenue diversification: The partnership provides Livium with an additional revenue stream that complements its existing battery recycling operations. Regulatory tailwinds: Upcoming product stewardship schemes and landfill bans will create mandatory demand for solar recycling services. Scalable, phased approach: The three-phase implementation minimises initial capital requirements while providing a clear pathway to a full-scale recycling operation. Leveraging existing assets: By utilising current infrastructure and customer relationships, Livium can expand into this adjacent market efficiently. Market Growth Projections The business potential for Livium's solar recycling venture is supported by strong market growth projections: Year Australian PV Recycling Market Global PV Recycling Market 2024 US$3.5 million US$492.8 million 2028 US$6.7 million* US$1.1 billion* 2033/2034 US$10.8 million US$2.67 billion *Estimated based on growth trends As Australia's clean energy transition accelerates, how Livium Ltd tackles solar waste places it at the intersection of two critical waste streams in the renewable energy sector, potentially creating significant long-term value for shareholders. About the Partners Livium Ltd (ASX: LIT) aims to lead and enable the global transition to sustainable lithium production. The company operates Australia's market leading battery recycler, Envirostream, a revenue and profit-generating business well-positioned to capitalise on growing lithium-ion battery demand. Additionally, Livium aims to commercialise patented lithium extraction technology (LieNA®) through a 50:50 joint venture with Mineral Resources Ltd (ASX: MIN), and critical battery material lithium ferro phosphate (LFP) through wholly owned subsidiary VSPC. Won Kwang S&T Co., Ltd. is a South Korean leader in solar energy and resource-circulation innovation, specialising in the full life-cycle of photovoltaic systems from design and manufacturing through construction and post-installation management. The company holds multiple proprietary technologies and international quality and environmental certifications (including ISO 9001, ISO 14001, K-Mark and Q-Mark). Won Kwang S&T has pioneered the commercialisation of in-situ heating separation technology for end-of-life solar modules, positioning itself at the forefront of sustainable waste reuse in the clean energy sector. Ready to Capitalise on Australia's Growing Solar Recycling Market? Discover how Livium Ltd (ASX: LIT) is strategically positioning itself at the forefront of Australia's emerging solar panel recycling industry through its partnership with South Korean specialist Won Kwang S&T. Learn more about this compelling investment opportunity and how Livium is set to address a critical environmental challenge while capturing significant market growth. For comprehensive information about Livium's solar recycling venture and other clean energy initiatives, visit Livium's investor hub today.