Livium Ltd Locks in Sigenergy Battery Recycling Partnership Across Australia

Livium Locks In Australia's Number One Residential Battery Brand as Envirostream Secures Sigenergy Partnership

The Livium Ltd Sigenergy battery recycling partnership in Australia marks a significant commercial development for the ASX-listed company. Livium Ltd (ASX: LIT) has announced that its wholly owned subsidiary, Envirostream Australia Pty Ltd, has executed a Battery Services Agreement with Sigenergy Australia Pty Ltd, the Australian arm of global energy technology company Sigenergy Technology Co., Ltd. The Agreement establishes Envirostream as a preferred recycling partner to the current market leader in Australia's residential battery storage sector, adding to Livium's strategy of building a scalable, compliant downstream battery recycling business.

Who is Sigenergy, and Why Does This Deal Matter?

According to publicly reported SunWiz data cited in the announcement, Sigenergy has held the position of Australia's number one residential battery manufacturer by blended capacity for ten consecutive months, from March 2025 through to January 2026. The company operates across home, business, and utility applications, combining solar, battery storage, EV charging, and AI-driven energy management into integrated systems. Its flagship SigenStor product bundles battery, inverter, EV charging, and energy control into a single home energy storage platform.

Sigenergy also holds the top market position in Ireland and South Africa, according to the company's disclosures, making it a globally significant operator. Its selection of Envirostream as a preferred Australian recycling partner represents an endorsement of Envirostream's service capabilities and compliance standards.

"Executing this Agreement with Sigenergy demonstrates the continued delivery of our growth strategy to expand Envirostream's presence across renewable and green energy infrastructure. Sigenergy is the current market leader in Australia's residential energy storage sector, a position supported by strong uptake under the Federal Government's Cheaper Home Batteries Program. This Agreement shows Sigenergy is taking end-of-life battery management and product stewardship seriously, and positions Envirostream as a preferred recycling partner as installed volumes increase."

— Simon Linge, Managing Director and CEO, Livium Ltd

What the Agreement Actually Covers

The Battery Services Agreement establishes a structured commercial framework between Envirostream and Sigenergy, covering a range of battery lifecycle management services.

Services covered under the Agreement include:

• Battery collection and logistics
• Inspection, sorting, and dismantling
• Discharging and recycling
• Safe disposal where required
• Documentation, including material disposal certificates
• Summary reporting

Key commercial and structural terms:

While the Agreement does not include minimum volume commitments or exclusivity, it does establish Envirostream as a preferred recycling partner, with priority consideration for service opportunities in Australia.

The rolling 12-month forecasting arrangement provides Envirostream with forward visibility to support operational planning, and pricing and scope for future work will be determined on a case-by-case basis through individual purchase orders.

Understanding Product Stewardship — and Why It's Becoming a Commercial Consideration

What Is Product Stewardship?

Product stewardship refers to the responsibility manufacturers and brands hold for the environmental impact of their products across the full lifecycle, including what happens when those products reach end-of-life. In the battery industry, this means ensuring used batteries are collected, handled safely, and either recycled or disposed of in a compliant manner rather than sent to landfill.

Why Does It Matter for Investors?

As Australia's installed base of residential battery systems grows, driven by government incentive programmes, falling costs, and rising energy prices, the volume of batteries eventually reaching end-of-life is expected to grow in parallel. Companies that manufacture or sell battery systems face increasing regulatory and reputational considerations around demonstrating credible end-of-life pathways for their products.

By partnering with Envirostream, Sigenergy is formalising its product stewardship approach with a specialist recycler. For Envirostream, being embedded in that value chain could translate into recurring service opportunities as Sigenergy's installed base matures over time.

Glossary of relevant terms:

• End-of-life battery management: The collection, processing, and recycling of batteries that have reached the end of their usable life
• Black mass: The processed battery material, containing lithium, cobalt, nickel, and manganese, recovered during battery recycling; a key intermediate product in the battery supply chain
• Circular battery supply chain: A closed-loop system in which battery materials are recovered and reintroduced into new battery production, reducing reliance on newly mined material
• Material disposal certificate: Documentation confirming compliant and traceable disposal or recycling of battery materials

The Market Backdrop: A Growing Pool of End-of-Life Batteries

The residential battery storage market in Australia has expanded in recent years, supported by the Federal Government's Cheaper Home Batteries Program. Since its introduction in July 2025, the programme has funded a discount of approximately 30% on the upfront cost of eligible small-scale battery systems, delivered via the Small-scale Renewable Energy Scheme.

In December 2025, the Australian Government announced an expansion of the programme's estimated funding.

As the installed residential battery base scales toward that target, the corresponding volume of batteries eventually requiring end-of-life management is also expected to grow. Sigenergy, as the current market leader, is well placed to contribute to those volumes, and consequently, the Agreement positions Envirostream to participate in that pipeline as it develops.

Livium's Broader Strategy: Building Out a Circular Battery Supply Chain

The Livium Ltd Sigenergy battery recycling partnership in Australia forms part of a broader strategy by Livium to build Envirostream into a scalable and commercially embedded battery recycling business.

Key strategic pillars reinforced by this Agreement:

1. Partnering with category leaders – Sigenergy's market leadership in residential storage provides a commercial anchor for Envirostream's service pipeline
2. Expanding across clean energy verticals – The Agreement extends Envirostream's footprint into residential distributed energy, complementing existing commercial and industrial battery recycling activities
3. Positioning in the circular supply chain – Envirostream's role as a downstream recycler connects battery manufacturers to compliant material recovery pathways
4. Expanding adjacent opportunities – Beyond battery recycling, Livium is developing capabilities in rare earth element recycling, solar panel recycling, and black mass processing

What Comes Next: Forward Outlook and Upcoming Developments

With the Agreement now executed, near-term focus shifts to operationalising the relationship and scaling service delivery as Sigenergy's installed base grows.

Key near-term milestones and considerations to monitor:

• Commencement of service delivery under agreed purchase orders
• Volume ramp as Sigenergy's residential installations mature toward end-of-life
• Potential exercise of the optional one-year extension at the end of the initial term
• Broader pipeline development, with pricing and scope for additional opportunities determined on a case-by-case basis
• Progress on Livium's adjacent expansion into rare earth recycling, solar panel recycling, and black mass processing

Investment Thesis: Why This Agreement Reinforces the Livium Story

The Livium Ltd Sigenergy battery recycling partnership in Australia adds a meaningful layer to the Livium investment case across several dimensions.

1. Market Access Through Category Leaders

By securing preferred partner status with Australia's number one residential battery brand, Envirostream gains forward access to a growing pipeline of end-of-life batteries without needing to compete for every individual opportunity.

2. Revenue Pipeline Aligned to a Structural Growth Market

Australia's residential battery storage market is expanding. As the installed base grows, so too does the future volume of batteries requiring recycling, creating a growing addressable market for Envirostream's services over time.

3. Validation of Service Capability and Compliance Standards

Sigenergy's selection of Envirostream as its preferred recycling partner in Australia serves as external validation of Envirostream's operational capabilities and compliance framework.

4. Platform for Deeper Commercial Relationships

The Agreement's framework for future opportunities, combined with the rolling forecasting arrangement, provides a foundation for an evolving commercial relationship rather than a single transactional engagement.

5. Differentiated Downstream Positioning

Livium occupies a relatively distinct position as a listed, specialist battery recycler in Australia — an asset class that could grow in relevance as battery volumes scale and attention on end-of-life management increases.

Why Investors Should Keep Watching Livium

Livium's business model is aligned to the build-out of distributed battery storage across residential, commercial, and industrial settings in Australia. Every battery installed today represents a potential future recycling opportunity, and furthermore, Envirostream is positioning itself as a partner of choice for companies driving that installation growth.

The Livium Ltd Sigenergy battery recycling partnership in Australia is the latest example of Livium converting that structural opportunity into a tangible commercial relationship. With Australia's number one residential battery brand now anchored in its customer base, and a pipeline of adjacent opportunities in rare earth recycling, solar panels, and black mass processing, Livium is building a multi-dimensional recycling platform at a point in the market cycle where volume growth remains in its early stages.

Key Takeaway

Livium has secured a preferred recycling partnership with Australia's leading residential battery brand, Sigenergy, reinforcing Envirostream's role as a downstream partner for the clean energy sector. With Australia targeting more than two million residential battery installations by 2030 and an expanded federal funding programme supporting adoption, the pipeline of future recycling volumes is expected to grow over time. Investors should monitor Envirostream's service ramp under this Agreement and Livium's continued progress in building out its downstream battery recycling capabilities.

Want to Learn More About Livium's Battery Recycling Strategy?

Livium Ltd (ASX: LIT) is building a commercially embedded battery recycling business at the heart of Australia's clean energy transition, with Envirostream now positioned as a preferred recycling partner for the country's number one residential battery brand. To explore Livium's full project pipeline, growth strategy, and latest company updates, visit the Livium investor hub and find out why this ASX-listed recycler is worth watching as Australia's installed battery base continues to scale.