Lithium Australia NL (ASX: LIT) has declared it is ready to join the Battery Stewardship Council's battery recycling scheme. As a result of the news, the Lithium Australia share price opened 4.17% higher at 12.5 cents. At the time of writing, however, the Lithium Australia share price has retreated back to 12 cents, flat for the day so far.
Let's take a look at the announcement released by the battery metal supplier this morning.
Battery recycling
Lithium Australia has announced its 90%-owned subsidiary, Envirostream Australia Pty Ltd, has received Dangerous Goods approval for its packages that will transport batteries for recycling. This means the company is able to participate in the Battery Stewardship Council's battery recycling scheme.
The Battery Stewardship Council has secured funding from the federal government and industry for its battery recycling scheme, which is planned to launch in January next year.
The council states the scheme will provide drop off points for customers to take used batteries to be recycled.
According to the Battery Stewardship Council, spent batteries are currently sent to landfill. There, their casing eventually corrodes which allows battery chemicals to leach into soil and waterways.
According to Lithium Australia, the World Bank's Minerals for Climate Action report predicts demand for battery minerals will increase by 500% by 2050. Thus, the recycling of batteries could be a significant, sustainable source of battery critical materials.
In anticipation of the battery recycling scheme's launch, Envirostream has created 6-kilogram and 12-kilogram storage and transportation boxes that are approved to hold both lithium-ion and alkaline batteries.
Commentary from management
Envirostream managing director Andrew Mackenzie commented on today's news released by Lithium Australia, saying:
The Scheme is vital to improving Australia's battery recycling rates, which currently sit at around 10% – a very low figure in comparison to other countries. At Envirostream, we're developing mixed-battery collection systems designed for convenience and approved for safety and the mitigation of environmental risk.
Lithium Australia share price snapshot
Lithium Australia shares are having a roaring time on the ASX of late.
Currently, the Lithium Australia share price is up by around 100% year to date. It's also up 144% over the last 12 months.
The company has a market capitalisation of around $108 million, with approximately 901 million shares outstanding.
