Lithium Australia announced that its wholly owned subsidiary, Envirostream Australia, has signed an exclusive agreement with the Volvo Group Australia’s Buses division that will focus on recycling end-of-life batteries from the latter’s fleet of electric and hybrid buses.
Volvo, a global leader in bus manufacturing, has recently delivered its electric bus models to various Australian customers, including the Public Transport Authority in Western Australia and Transdev in Queensland.
This new agreement, spanning an initial three-year term, designates Lithium Australia as the exclusive recycler for Volvo’s bus batteries in Australia.
The agreement validates our strategy to target large-scale OEMs and ESS manufacturers to grow our share of the high margin, large-format battery collection volumes,” said Simon Linge, CEO and managing director of Lithium Australia.
He continued, “We are very excited by the exclusive recycling agreement signed with Volvo, a leading manufacturer of electric buses in Australia.”
The demand for recycling large-format lithium-ion batteries is anticipated to surge as the adoption of electric vehicles and energy storage systems accelerates.
Lithium Australia is strategically positioning itself to capitalise on this growth by partnering with top-tier manufacturers in these sectors.
Linge noted, “Increasing our capability and growing volumes are strong drivers for the Company reaching cashflow breakeven within the recycling business, which we aim to achieve in the near term.”