Capturing a Slice of the $7.3 Billion Global REE Market
Livium Ltd (ASX: LIT) has announced a strategic expansion into the rare earth elements (REE) recycling market, securing exclusive global rights to innovative microwave extraction technology developed with the University of Melbourne. This move positions the company to capitalise on growing demand for REE materials outside China's dominant processing ecosystem.
The company, already established as Australia's leading lithium-ion battery recycler through its Envirostream subsidiary, is executing a strategy to apply its waste collection and processing expertise to high-value adjacent markets. With global REE markets projected to reach $7.3 billion by 2026, Livium is targeting a critical opportunity in the clean energy materials supply chain.
"Our strategy leverages our established collection and pre-processing capabilities to expand into complementary recycling streams with significant commercial potential," said Livium in its announcement.
Revolutionary Microwave Technology Delivers 85% Energy Reduction
The cornerstone of Livium's REE strategy is a term sheet signed with the University of Melbourne (UoM) to access an exclusive global 20-year license for microwave-assisted leaching technology specifically designed for REE recovery.
This technology delivers impressive performance metrics:
- >95% recovery rate for Neodymium (Nd)
- >80% recovery for Praseodymium (Pr) (improvable to >90% with oxidants)
- 85% reduction in energy consumption compared to conventional "Hot Block" digestion processes
The selective leaching approach offers multiple advantages over traditional methods:
| Advantage | Benefit |
|---|---|
| Energy Efficiency | 85% reduction relative to conventional processes |
| Higher Yields | Improved metal concentrate production |
| Cost Reduction | Decreased usage of acids and reagents |
| Sustainability | Reduced wastewater generation |
| Processing Efficiency | Easier separation of solid and liquid materials |
The technology, currently at Technology Readiness Level 3 (TRL3), will be scaled up approximately 100x to reach TRL 5-6 through the partnership. Notably, the technology also shows potential for platinum group metals (PGM) applications, with recovery rates of 91±13% for Platinum, 97±13% for Palladium, and 68±13% for Rhodium (improvable to >80%).
Expanding Beyond Battery Recycling
Livium's core recycling business continues to show steady growth, with FY25 revenue of $6.9 million (up 3% from FY24) and gross profit of $4.2 million (up 91% from FY24). The company processed 667 tonnes of large lithium-ion batteries in FY25, representing 30% growth year-over-year.
The expansion into REE recycling leverages several key strengths:
- Existing customer relationships seeking broader waste management solutions
- Established logistics and compliance infrastructure for hazardous materials
- Proven "Fee for Service" commercial model
- Limited capital requirements through asset-light market entry approach
Understanding Rare Earth Elements: Critical Materials for the Energy Transition
Rare earth elements (REEs) are a group of 17 metallic elements crucial for many high-tech applications, particularly in renewable energy technologies and electric vehicles. Despite their name, most REEs are relatively abundant in the Earth's crust, but economically viable concentrations are less common.
The most valuable REEs are those used in permanent magnets, including neodymium, praseodymium, dysprosium, and terbium. These "magnetic REEs" represent just 30% of overall REE volume but capture more than 80% of the market value.
Currently, China dominates global REE processing, handling approximately 90% of worldwide supply. This concentration has created supply chain vulnerabilities, with Chinese customs officials increasingly scrutinising and restricting orders from overseas customers, making recycling and alternative processing options strategically important.
Three-Stage Commercialisation Pathway
Livium has outlined a clear development path for its REE recycling technology:
- Stage 1 (TRL 2-3): UoM will prepare small-scale test results and secure an AEA Ignite grant for Stage 2
- Stage 2 (TRL 3-4): Design and build a Prototype Scale Microwave Reactor with UoM overseeing REE product test results
- Stage 3 (TRL 5-9): Livium commercialisation through initial pilot plant leading to first commercial sales
The company is positioned to either sell collected REE materials to offshore customers, develop local technology partnerships, or secure exclusive technology rights to process materials in Australia.
Investment Case: Undervalued Compared to REE Peers
At its current market capitalisation of $20.4 million, Livium appears significantly undervalued compared to other companies in the REE space:
| Company | Ticker | Market Cap (A$M) | Share Price (A$) | Focus |
|---|---|---|---|---|
| Livium | ASX: LIT | $20 | $0.012 | Integrated collection, separation, and processing |
| Metallium Limited | ASX: MTM | $547 | $0.084 | Integrated NdPr mining and planned refinery |
| Energy Transition Minerals | ASX: ETM | $130 | $0.066 | Lithium mining, REE extraction, processing |
| Locksley Resources | ASX: LKY | $62.9 | $0.237 | Antimony and REE extraction, processing |
| Iondrive Limited | ASX: ION | $49.8 | $0.042 | Recovery of metals from batteries and e-waste |
| MP Materials | NYSE: MP | $17,024 | $96.13 | REE mining + manufacturing facility |
| Mkango Resources | TSXV: MKA | $259 | $41.05 | Recycling rare earth magnets, alloys and oxides |
As the only ASX-listed company with operational recycling facilities targeting REEs, Livium offers a unique investment proposition in the Australian market.
Why Investors Should Watch Livium
Livium represents a compelling investment case for several reasons:
- First-mover advantage: Established recycling infrastructure positions it to quickly capture market share in emerging REE recycling
- Exclusive technology access: 20-year license for breakthrough microwave technology with significant efficiency improvements
- Diversified revenue streams: Building on existing battery recycling success to expand into adjacent high-value markets
- Geopolitical tailwinds: Addressing critical supply chain vulnerabilities in the REE market currently dominated by China
- Valuation discount: Significantly undervalued compared to REE sector peers despite operational assets and proven revenue model
With a strong balance sheet showing $3.8 million in cash as of June 2025 and improving profitability in its core Envirostream business, Livium Ltd rare earth recycling appears well-positioned to execute its REE strategy while maintaining financial stability.
As geopolitical tensions continue to impact global REE supply chains and demand for sustainable sourcing increases, Livium's recycling-based approach offers both environmental benefits and strategic supply chain security for critical clean energy materials.
Ready to Tap Into the REE Recycling Opportunity?
Discover how Livium Ltd is strategically positioning itself in the $7.3 billion global rare earth elements market with its exclusive microwave extraction technology. To learn more about this compelling investment opportunity in critical materials recycling and how Livium's innovative approach compares to its higher-valued peers, visit Livium's Investor Hub today.
