Materials recovery company Lithium Australia has announced its subsidiary recycling company Envirostream Australia has entered into an agreement with the buses arm of Volvo Group Australia to recycle end-of-life batteries from its fleet of electric and hybrid buses.
The recycling agreement is for an initial 3–year term, during which Lithium Australia will be the exclusive provider of battery recycling services to Volvo.
Lithium Australia CEO Simon Linge says the exclusive agreement aligns with their growth strategy.
“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,” Linge says.
“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.”
With a recent focus on electrifying its fleets, Volvo has been building vehicles and systems for long-term sustainable public transport, delivering its electric bus model to WA Public Transport Authority, QLD based Transdev and more.
As the adoption of EV’s and ESS continues to grow, the supply of available large format batteries for recycling is expected to accelerate.
Partnering with top tier EV and ESS manufacturers is a core part of Lithium Australia’s national growth strategy, with the company looking forward to leveraging this momentum to win new market leading clients.