Livium (ASX:LIT) is evaluating a black mass processing expansion at Derrimut with Sumitomo Corporation (TYO:8053) after progressing beyond a May memorandum of understanding (MoU).
Sumitomo and Livium’s wholly owned subsidiary Envirostream Australia are assessing processing technologies, equipment suppliers, investment economics, and environmental approvals. The work follows the non-binding MoU announced on 18 May 2026.
The proposed supply chain involves battery collection in Australia, black mass production by Envirostream at Derrimut in Victoria, and potential refining in Japan.
Sumitomo has begun information gathering and onboarding for a potential black mass purchase arrangement. However, no binding purchase agreement or investment commitment exists.
Sumitomo Metal Mining is a potential downstream refiner under separate arrangements with Sumitomo Corporation. Livium has no agreement with it.
Any expansion remains subject to technical and economic assessments, regulatory approvals, funding, and definitive agreements.
The work is separate from Envirostream’s binding black mass offtake with SungEel HiTech (KOSDAQ:365340), which provides contracted volume through June 2027.
Livium points to Australia’s vehicle market for context, noting five Japanese brands accounted for about 36% of new vehicles sold in 2025.
Hybrid sales rose 15.3% to 199,133 units, alongside 103,270 battery-electric and 53,484 plug-in hybrid vehicles. Livium cautions these figures do not indicate how many batteries will become available for recycling.
The arrangements remain at an assessment stage, with no volumes, pricing, or investment figures agreed.
Managing Director Simon Linge says the discussions have advanced faster than the initial MoU anticipated.
“The progress made since May is encouraging and highlights the potential for Envirostream to play an important role in international circular battery supply chains,” Linge says.
Livium is an Australian battery materials company advancing lithium chemicals and LFP/LMFP cathode powder production in Victoria.
Write to JC Villarba at Mining.com.au
Images: Livium
