Livium (ASX:LIT) is shifting its strategic focus to partnering initiatives after conducting a review exploring options to reduce costs, which includes job cuts.
The company says the focus on strategic partnering requires a different resourcing structure within the company.
Livium, which has a market capitalisation of $21.44 million, says it has decided to restructure the organisation which has resulted in the targeted reduction of 25% of roles across the company.
The company estimates that severance payments and other associated costs of this organisational review will be absorbed, and the benefit of reduced personnel costs will be seen by the end of this financial year.
Other cost reduction activities are also being implemented, including the use of third-party support. Total estimated annual cost savings from the restructure are expected to be $1.5 million.
CEO Simon Linge says the company has advanced its strategy to inflection points, with the next phases of growth for each division requiring strategic partners.
“Whilst organisational changes may impact our ability to react to opportunities, right sizing the organisation assists in resetting the company’s cost base to become sustainable over this critical period,” Linge says.
Livium’s battery recycling division — which is the largest recycler of lithium-ion batteries in Australia — draws on the company’s technical expertise to provide value-added services and has strong commercial relationships.
The company notes a strategic focus is being placed on battery recycling, through Envirostream, due to the potential of increased recycling volumes over the coming years.
During 2024, Envirostream collected 736,000 tonnes of large format batteries and it is estimated that there are five times these volumes available today.
Livium says the near-term outlook for Envirostream is positive as it enables increases of volumes collected and processed, and provides an opportunity to expand the company’s service offerings in line with market requirements.
To accommodate expectations of market growth, the company plans to explore deploying growth capital to improve operating efficiencies and expand capacity.
Livium has appointed advisors to coordinate discussions around partnership and growth funding opportunities, which include strategic partners and other financiers.
Write to Aaliyah Rogan at Mining.com.au
Images: Livium
