Exclusive battery recycling agreement signed with BYD Auto

• Lithium Australia signs 3-year exclusive agreement with global EV leader BYD Auto
• Agreement to significantly increase Lithium Australia's large-format lithium-ion battery collection volumes
• Lithium Australia's recycling operations continue to achieve operating cash profits into FY25

Lithium Australia Limited (ASX:LIT) has announced that its wholly owned subsidiary, Envirostream Australia Pty Ltd, has signed an exclusive 3-year recycling agreement with BYD Auto Industry Company Limited, the automotive subsidiary of BYD Company Limited. BYD Auto is a global leader in New Energy vehicles, having delivered a record ~3 million New Energy vehicles globally in 2023 and holds around 14% of Australia's EV market share after entering the market in 2022. Under the agreement, Lithium Australia will receive a service fee for the collection of BYD Auto's end-of-life lithium iron-phosphate (LFP) batteries. This agreement aligns with Lithium Australia's strategic plan to increase processing capacity of LFP batteries, as securing future LFP battery collections volumes will scale the company's LFP processing throughput. The agreement is not expected to materially change Lithium Australia's current average revenue unit rates and average cost of sales unit rates, and the additional collection volumes are expected to generate further operating cash profits. Lithium Australia remains focused on signing exclusive contracts with leading original equipment manufacturers and battery manufacturers, which represents a core component of the company's growth strategy.

Lithium Australia's recycling operations continue to achieve operating cash profits into FY25 following the maiden operating cash profit in Q4 FY24.

Lithium Australia looks forward to leveraging this momentum to win additional market leading clients and further accelerate the company's shift towards higher-margin large-format lithium-ion battery collections.