Lithium Australia Signs Exclusive Recycling Agreement with BYD

Lithium Australia (ASX:LIT) has entered into a significant battery recycling agreement with BYD Auto Industry Company. This three-year deal focuses on the recycling of electric and hybrid vehicles’ end-of-life batteries in Australia.

BYD Auto, a subsidiary of BYD Company and a major player in new energy vehicles, holds 14% of Australia’s EV market share. The collaboration allows Lithium Australia to handle end-of-life lithium-iron-phosphate (LFP) batteries, aligning with the company’s growth strategy in battery processing.

CEO Highlights Strategic Growth

CEO Simon Linge of Lithium Australia states that this agreement will increase the volume of large-format lithium-ion batteries (LIBs) collected, focusing on higher-margin opportunities.

This announcement was followed by a 10% increase in Lithium Australia’s share price, reflecting market confidence in its strategic direction.

BYD’s Commitment to Sustainability

BYD Auto General Manager Liu Xueliang emphasized that this partnership underscores BYD’s dedication to reducing carbon emissions through innovation.

Future Outlook and Technology

While the agreement is not expected to alter average revenue rates significantly, it promises additional operating cash profits for Lithium Australia. Customary termination rights are in place to protect against insolvency or breaches.

BYD vehicles feature the Blade Battery, which prioritizes safety and performance while using LFP cathode material.

Company Mission of Sustainability

Lithium Australia remains focused on sustainable lithium production, operating a leading battery recycling facility and utilizing patented lithium extraction technology.

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