Executive Viability Abstract
This feasibility study evaluates the establishment of a state-of-the-art Lithium-ion Battery (LiB) recycling facility in Australia. Leveraging the transition to a circular economy, the project focuses on 'urban mining' to extract high-purity battery-grade chemicals from spent EV and BESS units. The analysis indicates strong economic viability driven by sovereign security initiatives, strict environmental regulations, and the increasing volume of end-of-life batteries within the Australian market.
Return on Investment
24.5%
Payback Span
4.8 years
Net Present Value
$124,500,000 AUD
IRR Index
21.2%
## Market Analysis
Australia currently produces nearly 50% of the world's lithium but lacks downstream processing and recycling infrastructure. By 2030, an estimated 100,000 tonnes of LiBs will reach end-of-life annually. The market is transitioning from a linear 'dispose' model to a circular 'recovery' model, supported by the Battery Stewardship Council and federal export bans on hazardous waste. Demand for recycled cobalt, nickel, and lithium is projected to grow at a CAGR of 18.4% through 2032.
## Technical Feasibility
The proposed facility utilizes a two-stage process: 1) Mechanical crushing and sorting to produce 'Black Mass', and 2) Hydrometallurgical refining to produce battery-grade Lithium Carbonate and Nickel/Cobalt Sulfates. This method achieves recovery rates >95% for high-value metals with a lower carbon footprint compared to pyrometallurgical methods.
## Financial Projections
Total CAPEX is estimated at $75M AUD, covering land acquisition, specialized processing equipment, and environmental compliance systems. Revenue is generated via gate fees from waste providers and the sale of recovered metals. Projected annual revenue at full capacity is $38.5M AUD.
## Risk Assessment
Key risks include fluctuations in global metal commodity prices and the stability of feedstock supply chains. Mitigation strategies include long-term take-or-pay agreements with EV manufacturers and modular facility design to allow for technological shifts in battery chemistry (e.g., LFP vs NCM).