New battery recycling agreement with LG Energy Solution

This announcement is significant for the recycling division for the following reasons:

• Lithium ion Battery (LIB) Volumes: Significant increase in volumes with expected tonnes (~770) equivalent to 140% of all LIBs collected in FY2023 and ~400% increase in large format batteries against the same period.

• Commercial value: The new Agreement is on more favourable terms to prior agreements based on an updated service rate card which is being applied for new contracts of this type

• Cashflow potential: A significant contract with LG Energy Solution underpins the shift towards cash generation for recycling. Cash Gross Profits have been achieved for a while but we are now driving to cover management and overhead costs for the division

• Quality: LG Energy Solution are a significant player in the global lithium-ion battery industry and this Agreement demonstrates their confidence in Lithium Australia to deliver safe services

• Growth: The contract is on an exclusive basis meaning that volumes can be relied up. These exclusive relationships are being sought to underpin future capacity expansion.