Lithium Australia (ASX:LIT) has announced it will acquire a significant equity position in recycling company Envirostream as part of a technical partnership which will develop methods to retrieve critical metals from spent batteries within Australia.

Right now, Australia lags behind the rest of the world in battery recycling, in that only 3 per cent – predominantly lithium-ion batteries (LIBs) – are returned for reprocessing. Recycling such materials onshore could augment the federal government’s Critical Minerals Strategy, formally launched in March 2019. That strategy, while strongly focused on raw materials and supply chains, acknowledges the impact of innovation in processing to recover not only primary metals but also a range of by-products. 

Battery recycling relies on innovations of this type for sustainable and ethical supply of materials back into the battery-production cycle. The environmental benefits are also enormous because, aside from housing critical elements in high concentrations, batteries contain other toxic materials that should never be relegated to landfill. 

Lithium Australia aspires to 'close the loop' on the energy-metal cycle in an ethical and sustainable manner. 

Based in Campbellfield Victoria, Envirostream Australia was created in 2017 by Victorian company PF Metals to develop innovative, on-shore processing solutions for energy storage batteries.

Lithium Australia recognises Envirostream as the national leader in the primary reprocessing of LIBs. At present, it operates the only facility in Australia for shredding such batteries, producing a powder containing critical metals that is then exported for refining. Meanwhile, Lithium Australia is developing a way to process powders of this type, in order to extract the chemicals (nickel, cobalt, manganese and lithium compounds) required to regenerate battery cathodes, with simultaneous recovery of graphite from the battery anodes. 

Combining the key competencies of Lithium Australia and Envirostream will allow the latter to expand its operations, thereby ensuring that critical metals recovered from recycled batteries remain under Australian control to the point of sale. Moreover, it's anticipated that this joint venture will create new jobs, including employment opportunities in the battery industry not previously available within Australia. 

Envirostream will use the funds provided by Lithium Australia to expand its battery-shredding facilities. Meanwhile, Lithium Australia will continue its research into the chemical processing of alkaline batteries and LIBs. 

Lithium Australia Managing Director, Adrian Griffin said the sustainable and ethical supply of critical materials is a global challenge. “Maximizing the recycling of ALL battery metals, something rarely done effectively, is a target we have achieved in university-controlled testing. We have not limited ourselves to lithium ion batteries, but have included alkaline batteries with the aim of eliminating all such spent items from landfill. We are cognizant of the environmental implications of burying such “waste” and encourage all users of these products to join with us and recycle for the future benefit of the environment. And we have a message for OEMS as well – we have a plan, we have the ability and we have the solution to your long-awaited battery stewardship requirements.” 

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