Lithium Australia signs exclusive 3-year recycling agreement with BYD Auto

Lithium Australia Ltd (ASX:LIT) is pleased to announce the signing of an exclusive 3-year recycling agreement with BYD Auto Industry Company Limited, the automotive subsidiary of BYD Company Limited. This agreement, through its subsidiary Envirostream Australia Pty Ltd, aims to provide battery recycling services for all end-of-life batteries of BYD Auto's New Energy vehicles in Australia. BYD Auto is a global leader in New Energy vehicles, holding approximately 14% of Australia's EV market share and delivering a record ~3 million New Energy vehicles globally in 2023.

Executive commentary on the exclusive recycling agreement

We are excited to announce the signing of an exclusive recycling agreement with BYD, the global leader in New Energy vehicles. This milestone achievement is expected to significantly increase our future collection volumes of large-format lithium-ion batteries (LIBs), further accelerating the Company's shift in battery collections mix to be primarily focused on the higher margin large-format LIBs. The signing of this milestone agreement, alongside the various other exclusive recycling agreements announced in recent times, are evidence of our successful execution of the Company's recycling growth strategy. We look forward to working alongside BYD and look to leverage this momentum to drive further collections growth in FY25. - Simon Linge, CEO and Managing Director

Summary of the exclusive agreement and outlook

Lithium Australia (ASX:LIT) has successfully secured an exclusive 3-year recycling agreement with BYD Auto, a global leader in New Energy vehicles, to provide battery recycling services for all end-of-life batteries of BYD Auto's New Energy vehicles in Australia. This strategic move aligns with Lithium Australia's plan to increase processing capacity of LFP batteries and secure future LFP battery collection volumes, aiming to scale the Company's LFP processing throughput. The agreement is expected to generate further operating cash profits and represents a core component of the Company's growth strategy. With a focus on signing exclusive contracts with leading OEMs and battery manufacturers, Lithium Australia aims to leverage this momentum to win additional market leading clients in the future.