Livium Eyes Fire-Safe Battery Bins as NSW Rules Tighten, Pending Grant Approval
Key Takeaways
- Envirostream has signed a non-binding MOU with Energy-Cycle to develop manufacturing-ready fire-protected battery collection units and storage pallets, with only IP and confidentiality terms binding.
- The project depends on Energy-Cycle winning a NSW Clean Technology Innovation Grant, with assessment expected in October to November 2026 and a January 2027 start if approved.
- Battery fires are estimated at 10,000 to 12,000 a year across Australian waste streams, costing affected businesses an average of $400,000 more annually.
- NSW's mandatory battery stewardship regime commenced on 1 October 2026 and sets design and safety requirements for collection receptacles, which the project targets directly.
- Envirostream would hold a non-exclusive, royalty-bearing licence to Energy-Cycle's core IP, with licence terms still to be negotiated after grant approval.
Livium and Energy-Cycle sign MOU to develop fire-safe battery collection infrastructure
Battery fires in bins are an estimated 10,000 to 12,000 events a year across Australia’s waste and recycling streams, and Livium is moving to tackle the problem at the point batteries enter the recycling chain. Its wholly owned subsidiary, Envirostream Australia Pty Ltd (Envirostream), has signed a non-binding Memorandum of Understanding (MOU) with Energy-Cycle Pty Ltd (Energy-Cycle) to develop enhanced fire protection for lithium-ion battery collection units and storage pallets.
The MOU is non-binding other than in relation to intellectual property and confidentiality. That means the commercial path is not locked in, but the IP and confidentiality terms are.
The Project targets manufacturing-ready prototypes of enhanced battery collection infrastructure, to maintain adherence to safety requirements, including NSW’s new mandatory battery stewardship regime. For investors, the focus is on Envirostream’s collection products, which sit at the front end of the recycling chain as regulation tightens.
Simon Linge, CEO and Managing Director
“Safe collection infrastructure is a practical requirement for the battery recycling industry as volumes grow…”
“…This is particularly relevant following the commencement of NSW’s mandatory stewardship regime, which places greater emphasis on the safety of collection infrastructure.”
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Three workstreams built on a dual-mechanism fire protection system
The Project will integrate Energy-Cycle’s dual-mechanism fire protection system into Envirostream’s collection and storage products. The system combines a gel thermal barrier with aerosol suppression.
It comprises three workstreams:
- Collection units: an enhanced collection unit design, including a redesigned dangerous goods carton, developed to a manufacturing-ready prototype
- Storage pallets: an enhanced storage pallet design, developed to a manufacturing-ready prototype
- Product family pathway: a roadmap for extending the fire protection system across Envirostream’s collection and storage range, together with a regulatory compliance strategy
Energy-Cycle will lead technical design, prototyping and testing. Envirostream will provide product specifications and access to existing products, and support design validation, field testing and pilot deployment.
Regulatory compliance documentation and PSO validation are included as project deliverables.
Why battery fires matter to the recycling industry
Lithium-ion batteries can overheat and ignite in a process known as thermal runaway, where heat inside a damaged cell triggers further heating in a self-reinforcing cycle. The announcement describes Energy-Cycle’s work as fire protection and thermal runaway mitigation for these batteries.
Batteries placed in household bins are estimated to cause fires across waste and recycling streams. The announcement cites the following figures:
- 10,000 to 12,000 fires each year across Australia’s waste and recycling streams, or around 30 a day (Australian Council of Recycling and Waste Contractors and Recyclers Association of NSW, industry research, June 2024)
- An average cost increase of $400,000 per annum for waste and recycling businesses, according to industry research
NSW’s mandatory battery stewardship regime commenced on 1 October 2026 and includes design and safety requirements for battery collection receptacles. The Project is intended to develop and validate enhanced Envirostream collection and storage products against those requirements.
What that tells you is that safer collection infrastructure speaks to two issues at once: an operational and insurance risk, and a regulatory requirement.
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What is the funding and commercialisation pathway?
Funding depends on a grant outcome, and timing is subject to the NSW grant process. The key terms are below.
| Item | Detail |
|---|---|
| Grant | NSW Clean Technology Innovation Grant, applied for by Energy-Cycle |
| Anticipated assessment | **October to November 2026**, subject to the NSW grant process |
| Expected project start | **January 2027**, if approved |
| Project duration | **15 months** |
| Licence | Non-exclusive, royalty-bearing licence to Energy-Cycle’s core IP, for use within Envirostream products and services |
Energy-Cycle is responsible for securing and managing all grant funding and co-contributions. Detailed licence terms are to be negotiated following grant approval.
There is no certainty that a definitive agreement will be reached. Investors should treat the MOU as an early-stage step rather than a committed deal.
Livium will update the market on the grant outcome and any definitive agreement in accordance with its continuous disclosure obligations.
Livium describes itself as Australia’s leading battery recycler through Envirostream, a profitable business, and is expanding into recycling of rare earth elements and solar panels, and the processing of black mass.
Ready to Learn More About Livium’s Fire-Safe Battery Collection Project?
Livium’s subsidiary Envirostream is partnering with Energy-Cycle to develop manufacturing-ready, fire-protected collection units and storage pallets, targeting an industry that sees an estimated 10,000 to 12,000 battery fires a year. With NSW’s mandatory stewardship regime now in effect, safer collection infrastructure sits at the front end of a tightening regulatory landscape.
To explore the funding pathway, workstreams and investment potential in more detail, [visit the Livium company profile on Discovery Alert]() for the full picture.