Battery recycling gains momentum on the ASX

Battery recycling used to be a side note. Not now. Electric vehicles are everywhere and the minerals inside their batteries are worth too much to waste. On the ASX, a handful of companies have moved early. They’re locking in supply, scaling up plants and testing ways to strip value from what used to be scrap.

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Beyond the minerals

As markets shift, some investors look beyond the pits and processing plants, weighing opportunities in sectors that move to different rhythms. Diversification has become part of the conversation, with interest quietly spreading into areas far removed from heavy industry. These range from established property groups expanding their portfolios to technology firms rolling out new payment platforms. Others track growth in the renewable energy supply chain, building positions in companies tied to storage and grid solutions.

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Shifts like these show how capital can flow seamlessly between unrelated industries, each offering its own form of value and growth potential. The same flexibility that drives diversification in portfolios can also fuel innovation in sectors built on entirely different foundations. In resources, that adaptability is now visible in the steady rise of companies turning waste into renewed supply.

Recycling deals shift the numbers

Lithium Australia has had a year worth talking about. Through Envirostream, it pulled in more than 1,500 tonnes of used batteries — double last year’s haul. That included over 500 tonnes of large-format lithium-ion packs. Full-year revenue from battery recycling rose to $6.7 million. Margins lifted too. Not bad for an outfit still building its reach.

It’s not just about collection trucks. The company signed a three-year contract with BYD Auto to take every end-of-life pack from its electric and hybrid cars sold in Australia. Another deal with Infinitev keeps the flow coming. More volume means more recovery, and that’s the game here.

New methods on the table

Iondrive is coming from a different angle. University research in Adelaide has given it a process that skips the heat and heavy chemicals. Instead, it uses gentler solvents to break down cells and pull out the good stuff. The idea is cleaner, cheaper, less waste. A pilot plant in Adelaide is pencilled in once funding is locked down.

The numbers ahead are big. University forecasts put Australia’s spent EV batteries at roughly 30,000 tonnes by 2030. By 2050? More than 1.5 million tonnes. That’s a lot of material sitting in sheds if the processing isn’t ready.

Scaling solutions will need to match that growth. Researchers and industry partners are already exploring modular units that can be deployed closer to collection points, cutting transport costs and speeding turnaround times. Early trials suggest these smaller setups could feed material into larger plants, creating a flexible network rather than relying on a few centralised facilities.

Canberra turns the wheel

Policy is leaning in. Federal programs are pushing hundreds of millions into mineral processing and recycling. Tax breaks are in the mix, too. The aim is simple — keep more of the battery chain at home, not on a ship to someone else’s factory.

For recyclers, that makes a difference. A steadier market, clearer rules, and government backing can open doors with lenders and partners. It also sets the tone that this isn’t just a fringe green project. It’s part ofthe national infrastructure.

Why investors care

The draw is obvious. Lithium, cobalt, nickel — the prices swing, but they don’t go away. Getting them from old batteries means less reliance on imports and less cost than opening a new mine. That’s real leverage for local manufacturers and a hedge against supply shocks.

On the ASX, the market notices the early winners. Firms that post rising revenue, sign big supply agreements and actually move product out the door are separating themselves from the noise. Execution counts here — it’s easy to announce, harder to deliver.

Not all money is going into green tech. Some investors are balancing with consumer-facing sectors such as online entertainment. Different cycles, different drivers. The mix can smooth the ride while still keeping exposure to high-growth areas.

Hurdles still ahead

Capacity isn’t evenly spread. Most of the big plants sit in a few states, so moving heavy packs from other regions eats into margins. Adding more facilities — closer to where batteries come off the road — would cut those costs.

Technology will keep shifting. Higher recovery rates and lower processing costs will decide who stays ahead. Those that can do both, at scale, while meeting buyer specs, will keep the contracts coming.

Partnerships matter too. Automakers, energy storage suppliers, electronics recyclers — having those ties locks in supply. Without them, plants risk running below capacity, and in this business, idle time is expensive.

The shift is underway

Volumes will climb as electric vehicle fleets age. Those batteries have to go somewhere. The companies that can collect them, strip them down and feed the materials back into production will be in the right place at the right time.

Battery recycling is becoming part of the bigger story about how Australia handles its resources. Less waste. More value is kept onshore. And for the ASX, another angle in the race to build industries that can last.

For now, the pace will depend on how quickly supply chains adapt. Collection networks, processing capacity and end-market demand all have to move in step. Miss one, and the rest slow down. Get them aligned, and the sector could become a cornerstone of Australia’s clean-tech economy.