Quarterly Activities Report September 2024

• Recycling operations generated revenue of ~A$2.5m and gross profit of ~A$1.7m, representing a record 70% gross profit margin
• Collected ~377 tonnes of batteries, including a record 300 tonnes of large-format lithium-ion batteries, a 313% increase vs. Q1 FY24
• Completed pilot plant operations for disruptive lithium processing technology LieNA®, with final product analysis and refining underway

Lithium Australia Ltd (ASX:LIT) has released its quarterly business update and Appendix 4C for the period ended 30 September 2024 (Q1 FY25). The company's battery recycling subsidiary, Envirostream Australia, delivered a record performance, generating revenue of ~A$2.5m and gross profit of ~A$1.7m, representing a record gross profit margin of 70%. This was driven by a shift in the recycling mix, with large-format lithium-ion batteries (LIBs) making up a record 80% of total battery collections during the quarter, up from 73% in Q1 FY24. Envirostream collected a total of 377 tonnes of batteries, including a record 300 tonnes of large-format LIBs, a 313% increase compared to the prior corresponding period. The company attributed this growth to the signing of exclusive recycling agreements with leading OEMs, including BYD Auto, as well as the addition of an extra operational shift at its recycling facility. On the technology development front, Lithium Australia announced that the pilot plant operations for its disruptive lithium processing technology, LieNA®, are now complete, with the final product analysis and refining phase currently underway. The engineering study and layout development for the LieNA® demonstration plant are also largely complete, with the company and its joint development partner, Mineral Resources Limited, expected to form a 50:50 joint venture to commercialize the technology. Lithium Australia also continued to progress discussions with potential partners for the development of a 5,000tpa international lithium ferro phosphate (LFP) facility, as well as a 250tpa Australian scale-up facility. The company's cash and listed investments position stood at A$6.6m at the end of the quarter, bolstered by a successful capital raising and the sale of non-core assets.

Lithium Australia expects to see a significant increase in large-format LIB collection volumes as a result of the exclusive recycling agreement signed with BYD Auto during the quarter.

Lithium Australia is focused on large-format LIB collections to drive attractive unit economics and generate greater volumes of mixed metal dust and scrap metals to enhance downstream revenues. The company is also nearing completion on key activities related to the commercialization of its LieNA® lithium processing technology and continues to progress discussions on the development of LFP production facilities.