Lithium Australia Limited

Release Highlights:

◼ Lithium Australia has signed a 3-year Mixed Metal Dust (MMD) off-take agreement with South Korean battery recycler SungEel HiTech, committing SungEel to purchase a minimum of 60% of Lithium Australia’s annual MMD production, subject to quality requirements being met.

◼ This agreement validates the high quality of Lithium Australia’s MMD and supports the company’s growth strategy, highlighting the strong market demand and anticipated increase in future production volumes.

◼ Following the off-take agreement, discussions have commenced on a joint development agreement aimed at upgrading recycling equipment and expanding processing capacity, with the JDA subject to negotiation and relevant approvals.

Release Highlights:

• Lithium Australia’s subsidiary, Envirostream Australia, has entered into an exclusive 3-year agreement with Volvo Group Australia to recycle end-of-life lithium-ion batteries from Volvo’s electric and hybrid bus fleet, further supporting Volvo’s commitment to sustainable public transport.
• This collaboration is expected to substantially increase the collection volumes of large format lithium-ion batteries, which offer higher margin opportunities and are critical to Lithium Australia’s strategic growth objectives.
• By forming partnerships with prominent original equipment manufacturers (OEMs) and energy storage system (ESS) manufacturers, Lithium Australia aims to capitalize on the increasing demand for battery recycling and achieve cashflow breakeven in its recycling business in the near future.

Report Highlights:

• Lithium Australia advises that its subsidiary Envirostream has received an additional writ regarding a statement of claim valued at AUD 4.1 million, related to a fire incident at their Campbellfield, Victoria location on January 19th, 2019.
• Envirostream’s insurance company has settled approximately AUD 1.7 million in litigated claims related to the fire. As of December 31st, 2023, remaining claims were estimated at AUD 3.3 million.
• The new writ is expected to result in an additional provision in the company’s financial statements, though future claims are anticipated to be settled by Envirostream’s insurance company. Full details will be disclosed in the financial report for the year ending June 30th, 2024.

Report Highlights:

• During Q3 FY24, Lithium Australia collected 344 tons of batteries, including 177 tons of lithium-ion batteries (LIBs), which represents an 18% increase from the prior corresponding period. Additionally, the company sold 170 ton =s of Mixed Metal Dust (MMD) year-to-date in FY24, marking a 181% increase from the previous year.
• Lithium Australia has signed exclusive recycling agreements with LG Energy Solution and Hyundai Glovis, reinforcing its focus on the collection of large-format LIBs.
• Significant progress was made under the joint development agreement with Mineral Resources Ltd (MinRes), with piloting and an engineering study underway. As of March 31st, 2024, Lithium Australia had a strong cash and listed investments position of AUD 7.1 million, with an additional approximately AUD 1.3 million received from MinRes after the quarter ended.

Release Highlights:

• Lithium Australia is pleased to announce that Centrex’s subsidiary Agriflex has entered into a Non-Binding Memorandum of Understanding (MOU) with Lithium Australia to explore growth opportunities in the LFP battery market.
• The MOU outlines plan for Lithium Australia to build a demonstration plant in Queensland with a capacity of 250tpa of LFP or LMFP, requiring 200-300tpa of phosphoric acid from Agriflex. If successful, this will lead to a commercial plant with a capacity of approximately 25,000tpa of LFP or LMFP.
• Agriflex aims to leverage Ardmore’s high-grade, low-impurity phosphate resource to produce phosphoric acid for Lithium Australia’s LFP and LMFP production, with both parties working towards a conditional binding offtake agreement.

Release Highlights:

• Lithium Australia is pleased to announce the successful draws down of an additional ~A$1.3m of the A$4.5m convertible note issued by MinRes. The third drawdown will fund the demonstration plant engineering study and ongoing piloting activities, which commenced in March 2024.
• Pending successful completion of piloting activities and the engineering study, MinRes and Lithium Australia will form a 50:50 joint venture.
• Lithium Australia looks forward to continuing its relationship with MinRes and aims to deliver positive results from piloting activities and the engineering study later this year.

Release Highlights:

• Envirostream has signed a new exclusive agreement with Hyundai Glovis to provide battery recycling services for Hyundai Glovis batteries in Australia. The agreement has an initial 3-year term, and the Company expects it to increase large-format lithium-ion battery collection volumes.
• Hyundai Glovis is a world leading logistics provider which operates a distribution network and is part of the Hyundai Motor Group.
• Envirostream remains focused on executing the strategy of signing recycling agreements with leading EV and ESS1 manufacturers to secure future lithium-ion battery supply.

Release Highlights:

• Lithium Australia is pleased to announce that piloting has begun for its LieNA® technology under the Joint Development Agreement (JDA) with Mineral Resources Ltd. (MinRes). This follows the successful commissioning of equipment and the receipt of raw material samples from MinRes.
• Objective and scale-up: The piloting aims to demonstrate the LieNA® technology on a larger scale, building on previous successful laboratory-scale tests. The results will support an engineering study for a demonstration plant, which MinRes has the option to independently fund, develop, and operate.
• Future joint venture: Upon successful completion of the piloting and engineering study, Lithium Australia and MinRes will establish a 50:50 joint venture to commercialize the LieNA® technology through a licensing model.

Presentation Highlights:

• Lithium Australia Ltd (ASX:LIT)) is pleased to announce it will host an investor webinar on Friday, 22 March 2024, supported by Proactive Investors.
• CEO and Managing Director, Simon Linge extends an invitation to all Lithium Australia shareholders and new interested investors.
• During the 20-minute presentation, Mr Linge will provide an overview of the Company, which is aiming to lead and enable the global transition to sustainable lithium production.

Release Highlights:

• Lithium Australia is pleased to announce that is subsidiary Envirostream has signed an exclusive three-year agreement, aiming to provide battery recycling services for all LG Energy Solution’s recalled lithium-ion batteries collected in Australia.
• The agreement is expected to boost LIB collection volumes from LG Energy Solution by 140% compared to Envirostream’s total LIB collection volumes in FY23.
• The new agreement features improved commercial terms from the previous one, aligning with Envirostream’s strategy to enhance operational outcomes and service standards, while continuing to target agreements with leading EV and ESS manufacturers.