The Lithium Australia NL [ASX:LIT] was issued an operating licence permitting LIT subsidiary Envirostream Australia to continue battery recycling activities.
Lithium Australia has a 90% ownership interest in Envirostream Australia — an onshore, mixed-battery, recycling company.
The news received a mild reception, with the Lithium Australia NL [ASX:LIT] share price is currently up 2%.
Source: Tradingview.com
Like other ASX lithium stocks, LIT shares surged in early 2021. However, after hitting a 52-week peak of 21 cents at the start of the year, LIT’s share price have pulled back.
Still, the stock is up 125% over the last 12 months.
Envirostream secures 99-year operating licence
EPA Victoria has issued LIT subsidiary Envirostream an operating licence providing the environmental and legal framework for the company to continue its battery recycling activities at Campbellfield, Victoria.
Under the licence, Envirostream can process more than 500 tonnes of specified electronic waste annually.
LIT said Envirostream is unique in Australia in its ability to collect, sort, shred, and separate all components of end-of-life batteries.
Envirostream is also the country’s only mixed battery recycler, aiming to create a circular battery economy.
Lithium Australia’s Managing Director Adrian Griffin commented:
‘EPA licensing of our Victorian battery recycling facility for the next 99 years ensures that environmental safeguards are in place for the ever-increasing battery utilization required to decarbonize the economy.
‘Australia has an environmental duty of care to establish compliant recycling facilities that can safely process the expected increase in volume of end-of-life batteries, providing sustainable materials for this critically important manufacturing sector and reducing environmental pollution — the legacy of what has until now been a poorly managed industry.’
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LIT share price outlook
Today’s announcement comes after LIT’s subsidiary — VSPC — progressed in its plans to establish a strategic position in the market for cobalt- and nickel-free lithium-ion batteries.
VSPC has patented several processes for producing high-performance lithium iron phosphate (LFP) cathode powder.
Today’s battery recycling licence highlights Lithium Australia’s push to be involved across as much of the lithium supply chain as possible.
Lithium stocks hold much potential as the world seeks to reduce its carbon footprint, with electric vehicles set to play a major role.
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Regards,
Kiryll Prakapenka,
For Money Morning
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