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Highlights

  • Livium signed a Term Sheet with the University of Melbourne for exclusive rights to microwave technology in REE extraction.

  • Laboratory results show >95% recovery for Nd and >80% for Pr, with significantly lower energy consumption.

  • The collaboration includes funding of up to AUD 250,000 and targets the design of Australia’s first REE microwave prototype.

Livium Ltd (ASX:LIT) saw its share price increase 20.8% to AUD 0.015 on 9 September following the announcement of a Term Sheet with the University of Melbourne (UoM). The agreement provides Livium with exclusive global rights to use microwave technology for Rare Earth Elements (REE) extraction, a development aimed at expanding the company’s recycling service offering.

Innovative Microwave Technology

The University of Melbourne’s microwave technology is designed to improve REE extraction processes. Unlike traditional methods such as acid leaching and solvent extraction, microwave heating enhances chemical reactions, alters mineral morphology, and selectively recovers key elements, including neodymium (Nd) and praseodymium (Pr).

Laboratory testwork demonstrated recovery rates of more than 95% for Nd and over 80% for Pr, with the potential to exceed 90% using an oxidant. The approach also reduces energy consumption by an estimated 85% compared to “Hot Block” digestion and lowers usage of acids and reagents while producing less wastewater.

In addition to REE, the microwave method has shown recovery potential for platinum group metals (PGMs) such as platinum (Pt), palladium (Pd), and rhodium (Rh). Studies indicate recovery rates of 91% ±13 for Pt, 97% ±13 for Pd, and 68% ±13 for Rh, with ongoing research targeting further improvements for Rh.

Strategic Expansion into REE Recycling

Livium’s strategic focus includes expanding its recycling capabilities into adjacent areas within the circular economy. Rare Earth Elements have been identified as a medium-term opportunity due to rising global demand, particularly in clean energy applications such as electric vehicle propulsion motors and wind turbine generators.

With existing exposure to the REE end-of-life supply chain, including connections to clean energy and e-mobility clients, Livium intends to leverage its current infrastructure and processes. The UoM partnership strengthens this expansion by securing exclusive rights to a low-cost, innovative technology platform.

The global REE market is forecast to grow to USD 7.3 billion (AUD 11.2 billion) by 2026, while recycling remains largely untapped, with less than 1% of REE currently recycled worldwide.

Key Terms and Next Steps

Livium will fund the University of Melbourne’s REE extraction research with an initial investment of approximately AUD 65,000, with potential to rise to around AUD 250,000 based on the achievement of project milestones. These milestones include securing grant support for a prototype microwave reactor and delivering REE product test results from that reactor.

A grant application has already been submitted under Australia’s Economic Accelerator Ignite program to support the research. The collaboration is expected to produce Australia’s first prototype in REE extraction using microwave technology.

The parties are working towards executing a binding IP licensing agreement that will grant Livium exclusive rights to commercialise the technology worldwide for 20 years.