Announcement PDF Sustainability Report 2024 Sustainability Report 2024 Contents FY2024 Highlights 2 Commitment to Sustainability 3 Message from Our Managing Director 4 Corporate Governance 5 Compliance & Ethical Standards 6 Risk Management 7 Sustainability Strategy and Goals 9 Performance Monitoring and Reporting 10 Environmental Stewardship 11 Energy Management 12 Water Management 13 Waste Management 14 Strategies to Reduce Green House Emissions 15 Stakeholder Engagement 17 Social Responsibility 18 Diversity, Equity and Inclusion 19 Health & Safety 21 Safety Training & Compliance 22 Financial Performance and Economic Impact 24 Innovation and Sustainable Growth 25 LITHIUM AUSTRALIA SUSTAINABILITY REPORT 2024 1 FY2024 Highlights 38% A$2.2m 306.29 5% increase from FY2023 53% increase from FY2023 Down 49.71 metric tonnes from FY23 Female Workforce Gross Profit 1542t 1 Outstanding environmental Batteries diverted from landfill matter 14% increase from FY2023 389MWh Electricity consumed 55.25MWh decrease from FY2023 0 increase from FY2023 First Nations Strategy Developed to support diversity and inclusion Safety Culture Improved safety systems to track and measure lead and lag indicators Increased focus on ESG Closure of majority of defined ESG Roadmap actions 2 (tCO2) Time 1 Lost Injury 0 increase from FY2023 ESG Training Literacy training completed Commercial 4 Exclusive A$6.7m Agreements Including product off-take and recycling services arrangements for our recycling division LITHIUM AUSTRALIA SUSTAINABILITY REPORT 2024 Revenue 22% increase from FY2023 Commitment to Sustainability AT LITHIUM AUSTRALIA, SUSTAINABILITY UNDERPINS EVERYTHING WE DO At Lithium Australia, sustainability is central to our technology platforms. In our sustainability performance, we focus on reducing our environmental impact, fostering social equity, and driving growth through responsible practices. Our sustainability strategy includes three main areas: Environmental Stewardship, Social Responsibility, and Governance. Environmental Stewardship - We work to lower our carbon footprint, improve energy efficiency, and reduce waste through recycling technologies and responsible sourcing. Our recycling operations and LieNA® technology are key examples of these efforts. Social Responsibility - We are committed to diversity and inclusion, supporting local communities, and engaging with stakeholders. Our First Nations Strategy promotes inclusion and provides opportunities for underrepresented groups. Governance - We maintain high standards of corporate governance, focusing on ethical business practices, and delivering on our ESG roadmap. ABOUT THIS REPORT This report provides an overview of our sustainability performance during the 2024 Financial Year. It covers our progress towards sustainability goals, key achievements, and the initiatives we have undertaken to uphold our environmental, social, and governance (ESG) commitments. The data in this report is presented accurately and transparently, reflecting our commitment to providing stakeholders with a clear view of our sustainability efforts. From advancements in battery recycling to improved safety protocols, this report highlights our ongoing commitment to making a positive impact. LOOKING AHEAD Our focus will remain on innovation, expanding our sustainability initiatives, and strengthening partnerships. Sustainability is a continuous journey, and we are committed to improving our practices and achieving new goals in and with the industry. We invite you to explore this report and learn more about our efforts to build a more sustainable future. Lithium Australia Lithium Australia Limited (‘Lithium Australia’ or ‘the Company’) aims to lead and enable the global transition to sustainable lithium production. The Company is aiming to achieve this through its three business divisions: Battery Recycling, Lithium Chemicals, and Battery Materials. Lithium Australia is well-placed, via its patented technologies and market leading battery recycling business, to capitalise on favourable market dynamics including the continued global demand growth for lithium- ion batteries and growing diversification and adoption of alternatives within global lithium supply chains. LITHIUM AUSTRALIA SUSTAINABILITY REPORT 2024 3 Message from our Managing Director & CEO As we reflect on the achievements of FY2024, Lithium Australia continues to make significant advances in our mission to lead the global transition to sustainable lithium-ion battery production. Our commitment to sustainability underpins every facet of our operations, from pioneering innovative technologies to fostering a culture of safety and inclusivity within our workforce. This year, we have not only strengthened our value proposition but also advanced our strategic goals with tangible outcomes that align with our core values. One of our most notable achievements has been in battery recycling, where we saw a 14% increase in the collection of lithium- ion batteries, totaling 1,542 tonnes. This was made possible through our exclusive recycling agreements with major OEMs, including LG Energy Solution and Hyundai Glovis, which have significantly strengthened our capacity to process large-format LIBs. These partnerships are a testament to our strategic focus on expanding our recycling capabilities and reinforcing our commitment to environmental stewardship. In addition to our environmental efforts, we have maintained a strong focus on safety − a core value that is deeply embedded in our organisation. I am proud to report that we have improved our safety culture over the past year however still recorded one lost time injury incident, reflecting the need for ongoing dedication to maintaining a safe working environment. The successful rollout of the Myosh safety management system has further enhanced our ability to manage safety risks and assist with compliance with health and safety regulations across all operations. As we look to the future, our strategic partnerships and innovations, such as the ongoing development of our LieNA® technology, position us well to continue driving sustainable growth. We remain committed to delivering against our ESG roadmap, with most tasks now complete, and to building on the solid foundation we have established this year. Together, we will continue to pursue our vision of enabling the global transition to a circular battery industry, essential for decarbonising the global economy. Finally, I want to extend my thanks to all our staff, partners, and stakeholders for their dedication and hard work. It is through your commitment and passion that we continue to achieve these milestones. Simon Linge Managing Director & CEO 4 LITHIUM AUSTRALIA SUSTAINABILITY REPORT 2024 “Sustainability is more than environment. It is that all aspects of the way we think and act in our business are sustainable, be that in our engagement with external stakeholders the relations with and between our people and of course the environment in which we operate. In short it is always about doing the right thing.” Corporate Governance GOVERNANCE STRUCTURE Lithium Australia is committed to maintaining high standards of corporate governance, ensuring accountability, transparency, and ethical conduct throughout its operations. The Company’s governance structure is designed to provide effective oversight and strategic guidance, promoting long-term sustainability and value creation. BOARD OF DIRECTORS AUDIT AND RISK COMMITTEE (ARC) The Board of Directors at Lithium Australia is responsible for setting the company’s strategic direction and vision, approving major corporate initiatives and investments, overseeing risk management and internal controls, ensuring compliance with corporate governance principles and ethical standards, and monitoring the company’s performance to ensure accountability to stakeholders. NOMINATION AND REMUNERATION COMMITTEE The Board of Directors is responsible for overseeing the implementation of corporate governance policies and ensuring compliance with legal and regulatory requirements. The Board is composed of experienced professionals with diverse backgrounds, bringing a wealth of knowledge and expertise to the company. The Board includes both executive and non-executive members, promoting a balanced approach to decision-making. The Audit and Risk Committee (ARC), a sub-committee of the Board, assists in fulfilling the Board’s oversight responsibilities. The ARC is tasked with reviewing the company’s financial statements to ensure their integrity, overseeing the risk management framework and internal control systems, monitoring compliance with regulatory requirements and corporate policies, and evaluating the effectiveness of the company’s audit processes. The Nomination and Remuneration Committee supports the Board in matters related to governance and human resources. Its responsibilities include reviewing and recommending candidates for Board and senior management positions, overseeing the company’s remuneration policies and practices, ensuring that compensation structures align with the company’s strategic objectives and performance, and promoting diversity and inclusion within the Board and management. SAFETY & SUSTAINABILITY LEADERSHIP COUNCIL (SSLC) Established in FY23, the Safety & Sustainability Leadership Council (SSLC) plays a crucial role in managing and promoting safety and sustainability within the workplace. The SSLC’s key functions include developing and implementing effective health, safety, and environmental policies and procedures, ensuring compliance with relevant regulations and standards, regularly reviewing and improving the effectiveness of safety and sustainability programs, and reporting to the Board on safety and sustainability matters. To allow increased focus, the SSLC will be split into two committees in FY25, one for safety and one for sustainability. LITHIUM AUSTRALIA SUSTAINABILITY REPORT 2024 5 Corporate Governance Compliance & Ethical Standards POLICIES, CODES OF CONDUCT, AND TRAINING PROGRAMS Lithium Australia is dedicated to upholding the highest standards of compliance and ethical behaviour across all its operations. We have an established set of policies that guide our employees, directors, and officers in their professional activities. These policies are designed to ensure ethical behaviour, promote transparency, and foster a culture of integrity. Our Code of Conduct sets clear expectations for ethical behaviour and professional conduct, covering various aspects, including respect in the workplace, integrity in business dealings, and responsibilities towards stakeholders. All employees are required to comply with the Code of Conduct with any breaches taken seriously and addressed promptly. To support the adherence to these policies, Lithium Australia has implemented training programs. These programs support the effective launch of new policies and standards and include periodic updates on key areas such as Code of Conduct, Discrimination, Harassment & Bullying, Health, Safety, Environment and Community, Modern Slavery, and Whistleblowers Protection policy. Training is recorded and seeks to ensure that all employees are aware of their responsibilities and the importance of maintaining high ethical standards in their daily work. These policies are fully communicated to all new starters as part of an integrated induction and onboarding program. COMPLIANCE WITH LAWS AND REGULATIONS Lithium Australia seeks to ensure adherence to all applicable laws and regulations at local, state and federal levels. This commitment to compliance is overseen by the Audit and Risk Committee (ARC), which ensures that our practices meet the required legal and regulatory standards. We conduct periodic internal audits and reviews to monitor compliance with relevant laws and regulations. These audits cover various aspects of the business, including financial reporting, payroll, environmental impact, health and safety, and operational practices. Any areas of non-compliance are addressed promptly, with corrective actions implemented to prevent future occurrences. In addition to internal audits, Lithium Australia engages with external auditors and regulatory bodies to ensure transparency and accountability. The Company maintains open communication with these entities, providing them with necessary information and cooperating fully during inspections and reviews. 6 LITHIUM AUSTRALIA SUSTAINABILITY REPORT 2024 Risk Management Lithium Australia is dedicated to maintaining an effective risk management framework to ensure the company’s resilience and long-term success. The Board of Directors holds ultimate responsibility for the oversight of risk management within the Company. Our risk management approach includes the following key elements: The Board ensures that risk management is integrated into the Company’s strategic planning and operational processes. This involves setting policies for risk oversight and internal compliance, ensuring they align with the Company’s objectives. A Crisis Management Plan is in place to outline the Company’s response and management structure during critical incidents. The Crisis Management Team (CMT) leads this process, ensuring a standardised and effective approach to crisis management across all Lithium Australia sites and subsidiaries. Annual critical risk reviews are conducted to assess and manage key risks, grouped into categories such as compliance, environmental, financial, health & safety, IT, market & technology, and operational risks. This process ensures that high-risk issues are addressed promptly with appropriate control measures. The risk management framework is regularly reviewed and updated to adapt to changing internal and external conditions. This ensures that Lithium Australia’s risk management practices remain current and effective. Our corporate values, developed through workshops with the Board, Executive Leadership Team and employees, underpin our approach to risk management. This fosters a culture of ethical conduct, responsibility, and proactive risk management across the company. Supply Chain Management Lithium Australia places a strong emphasis on responsible sourcing and ethical supply chain management. Our approach to procurement is guided by principles of transparency, accountability, and environmental responsibility. We work closely with our suppliers to ensure that all materials, components, and services align with our sustainability goals and ethical standards. This includes adhering to a modern slavery framework and implementing rigorous guidelines to prevent human rights violations across our supply chain. By fostering collaborative relationships with our partners, we are able to secure highquality materials that support our innovative technologies while maintaining our commitment to sustainability and ethical business practices. PROGRESS ON OUR ESG ROADMAP Governance Planet People Prosperity COMPLETE • ESG Literacy Training ESG added to Board Agenda COMPLETE • E  nvironmental Policy COMPLETE • D  iverse hiring strategy Remuneration Policy Inclusion / Diversity Policy Strategy to promote and ensure equal pay Health and Safety Policy Inductions for each operational site Modern Slavery Policy Non-discrimination and Anti-harassment Policy Training Register Recruitment, Retention and Termination Policies Employee Training Plan Diversity breakdown indicators COMPLETE • E  mployee Retention Guide Process to record new hires and turnover split by diversity indicators. • Bribery and Corruption incidents reported Risk Management Framework • Board Risk Workshop Grievance policy and reporting mechanism Ethics Training Community Engagement Policy IN PROGRESS • Diversity Register for Board/staff/ key consultants Mechanism for reporting ethical issues confidentially IN PROGRESS • TCFD implementation to be identified and reported • F  irst Nation’s Strategy IN PROGRESS • L  ocal Procurement Policy • S  upplier Code of Conduct LITHIUM AUSTRALIA SUSTAINABILITY REPORT 2024 7 Lithium Australia operates through several business units, each focusing on different aspects of the lithium-ion battery value chain. These units work together to advance the company’s mission of enabling the global transition to sustainable energy. Lithium Australia’s governance structure ensures that each business unit operates under the strategic guidance and oversight of the Board of Directors. From a governance and strategy perspective the business units— Battery Recycling, Lithium Chemicals, and Battery Materials, — coordinate to ensure alignment with the company’s strategic goals. They report to the Board via the CEO, ensuring compliance with corporate governance principles and contributing to sustainability objectives. BOARD OF DIRECTORS Lithium Australia SUB-COMMITTEE SUB-COMMITTEE Audit & Risk Remuneration & Nomination MANAGING DIRECTOR Lithium Australia 8 BATTERY RECYCLING BATTERY MATERIALS LITHIUM CHEMICALS The Battery Recycling unit, operated through the subsidiary Envirostream Australia Pty Limited (Envirostream), is Australia’s leading battery recycler. Envirostream has been operating since 2017 and has experienced year on year revenue growth resulting in profit generation in late FY24. Key activities include the collection and processing of endof- life batteries at state-of-theart recycling facilities in Victoria to recover valuable materials. Lithium- ion battery supply is secured through exclusive recycling services agreements with global manufacturers. The key material recovered is mixed metal dust (MMD or black mass), which is sold via a black mass offtake agreement with global recycling company, SungEel HiTech. The Battery Materials unit focuses on the development and production of advanced battery materials. This is undertaken through VSPC Pty Limited (VSPC), a subsidiary specialising in the production of lithium ferro phosphate (LFP) and lithium manganese ferro phosphate (LMFP) cathode powders. LFP is quickly becoming the dominant chemistry for lithiumion batteries due to cost and safety characteristics and LMFP is considered the next generation of cathode materials. VSPC operates an Electrochemistry Laboratory and Pilot Production Facility, with joint development partners being sought to facilitate the scale up of capacity and securing of binding offtake agreements before Commercial Facility development. The Lithium Chemicals unit is responsible for developing and commercialising innovative lithium extraction and refining technologies, such as LieNA®. LieNA® is a novel and proprietary process which has the potential to improve the recovery of lithium from spodumene mines by up to 50%, due to its ability to recover lithium from fine and low- grade materials. The Company has entered into a Joint Development Agreement (JDA) with Mineral Resources Limited (ASX: MIN). Under the JDA, the Company will manage piloting and a demonstration plant engineering study activities and Mineral Resources will fund these activities via a convertible note. Following successful completion of these activities, a 50:50 joint venture will be formed to allow the LieNA® technology to be commercialised through the issuance of licences. LITHIUM AUSTRALIA SUSTAINABILITY REPORT 2024 Sustainability Strategy & Goals Lithium Australia’s vision is to lead and enable the global transition to sustainable lithium-ion battery production through innovative technology platforms. Our mission is to contribute to a better world by recycling end of life batteries, advancing lithium chemicals and battery materials technologies, and promoting a circular battery industry essential for decarbonising the global economy. Sustainability Strategic Goals Alignment with Business Strategy Lithium Australia’s sustainability strategy is intricately aligned with our overall business strategy, ensuring that all operations contribute to sustainable development goals. Each business unit play a pivotal in executing this strategy. Battery Recycling: Through operation of Australia’s leading battery recycling facilities, we ensure valuable materials are recovered and reused, reducing waste and supporting a circular economy. SUSTAINABILITY INNOVATION CIRCULAR ECONOMY Achieving zero harm to people, minimising environmental impact, and driving towards a zero-carbon environment. Developing and commercialising cutting-edge lithium extraction and refining technologies Enhancing battery recycling processes to divert end-oflife batteries from landfills and repurpose materials for new battery production. Company Values SPARCS The Company’s values, represented by the acronym SPARCS—Safety, People, Active, Respect, Creative, Sustainability— drive our sustainability performance and reporting. By aligning our vision, mission, and strategic goals with these core values, Lithium Australia aims to lead the industry in sustainable practices, contributing significantly to global decarbonisation efforts and fostering long-term environmental stewardship. Lithium Chemicals: Through development of innovative lithium extraction technologies, such as LieNA® which aims to recover lithium from fine and low-grade materials, we are supporting sustainable and efficient lithium extraction. Battery Materials: Through development of advanced cathode materials like lithium ferro phosphate (LFP) and lithium manganese ferro phosphate (LMFP) we aim to assist in the sustainable energy transition. SAFETY We choose safety first, every time PEOPLE We take a people centered approach ACTIVE We act in a purposeful way that involves positive action RESPECT We respect and trust each other and all have a voice CREATIVE We use technology to develop innovative solutions to accelerate global electrification SUSTAINABLE We each play a role in making the world a better place LITHIUM AUSTRALIA SUSTAINABILITY REPORT 2024 9 Performance Monitoring and Reporting Lithium Australia is committed to aligning its sustainability performance with the United Nations Sustainable Development Goals (SDGs) and the Global Reporting Initiative (GRI) standards. This alignment ensures that the Company’s sustainability efforts contribute to global sustainability objectives and adhere to internationally recognised reporting frameworks. Reporting Processes and Frequency Lithium Australia is dedicated to transparency and accountability through regular sustainability reporting, aligned with SDGs and GRI standards. The Company’s reporting processes are designed to provide stakeholders with accurate and timely information on its sustainability performance. This annual Sustainability Report details performance across environmental, social, and governance (ESG) dimensions. By aligning with GRI standards and contributing to SDGs, the report ensures consistency and comparability with global sustainability practices. In addition to this annual Sustainability Report, Lithium Australia provides quarterly updates on specific sustainability metrics as part of its regular financial and operational reporting. These updates offer stakeholders a more frequent view of the Company’s progress and any significant developments in its sustainability initiatives. Monitoring and Measurement of Sustainability Performance Lithium Australia systematically monitors and measures its sustainability performance across various areas, including environmental impact, social responsibility, and governance practices. This approach allows the Company to identify opportunities for improvement and implement effective strategies to enhance its sustainability outcomes. 10 LITHIUM AUSTRALIA SUSTAINABILITY REPORT 2024 The reporting processes involve thorough internal reviews and validations to ensure the accuracy and reliability of the reported data. The Audit and Risk Committee (ARC) oversees the reporting processes, ensuring that all disclosures meet regulatory requirements and reflect the Company’s commitment to transparency and alignment with SDGs and GRI standards. Environmental Stewardship At Lithium Australia, our commitment to environmental sustainability isintegral to our operations and aligns with Our Purpose, Our Values, and our Code of Conduct. Guided by our comprehensive Health, Safety, Environment, and Community (HSEC) policy, we prioritise reducing ecological impact and promoting sustainable practices. We adhere to environmental laws and regulations, implement practical and effective controls to mitigate environmental risks, and aim for efficient resource use. Our commitment extends to reducing pollution and continuously improving our environmental performance. By engaging transparently with local communities and respecting their values, we aim to be responsible corporate citizens, contributing to global efforts to combat climate change and protect natural resources. In FY24, Lithium Australia made significant progress in its battery recycling efforts, collecting a total of 1,542 tonnes of batteries, of which 54% were lithium-ion batteries (LIBs). The company saw an 14% increase in LIB collection volumes compared to the previous year, driven by a focus on large format LIBs which experienced a remarkable 170% increase on the previous year. This impressive growth was driven by recycling services agreements including LG Energy Solution, Volvo Group and Hyundai Glovis. The installation of a new shredder at the Campbellfield facility increased recycling throughput by approximately 37%, and process optimisation work resulted in up to 25% greater Mixed Metal Dust (MMD) yield per tonne of lithium-ion batteries processed. These efforts underscore Lithium Australia’s commitment to environmental stewardship and sustainable development. Key elements of the environmental policy include: Sustainable Resource Use: Lithium Australia emphasises the efficient use of resources and strives to reduce waste generation through prevention, reduction, recycling, and reuse initiatives. Pollution Prevention: The Company is committed to preventing pollution by minimising emissions, discharges, and waste in its operations. This includes the safe handling and disposal of hazardous materials. What does sustainability mean to you? Andrew Napier GM Technology Development To me, sustainability means meeting current needs while enabling future generations to meet theirs. through targeted environmental, economic, and social development practices. Continuous Improvement: Regular audits and assessments are conducted to identify areas for environmental performance improvement, ensuring ongoing development and adherence to best practices. Stakeholder Engagement: The Company actively engages with stakeholders, including employees, communities, regulators, and industry partners, to foster a collective commitment to environmental stewardship. LITHIUM AUSTRALIA SUSTAINABILITY REPORT 2024 11 Energy Management Lithium Australia is committed to responsible energy consumption and management practices to minimise its environmental impact and support sustainable development. We collate energy data as part of the determination of carbon intensity and use this information to manage our energy use across all operations, ensuring efficiency and sustainability are prioritised, where practicable. Energy Consumption Data 3.2kL 0.5kL 1.6kL 389MWh 2kL 55kL Initiatives for Energy Efficiency Lithium Australia focuses on optimising its energy use to improve efficiency and reduce its environmental footprint. The Company continuously seeks ways to improve operational practices and invest in technologies that support energy efficiency. Key Initiatives: Operational Optimisation The RC Process in the Battery Materials division is continuously optimised to reduce water and energy usage, ensuring the process remains efficient and sustainable. Stakeholder Engagement Engaging with stakeholders to gather insights and feedback on energy management strategies, ensuring alignment with best practices and Energy Use and Targets for Reduction Lithium Australia tracks its energy use through regular data collection and analysis, setting targets for reduction to drive continuous improvement. The Company is committed to achieving significant reductions in energy consumption by implementing effective energy management practices and investing in energy-efficient technologies. KEY INITIATIVES Short-Term Goals: Implement immediate, practical measures to reduce energy consumption across all operations. Long-Term Goals: Invest in renewable energy sources and innovative technologies to achieve substantial reductions in overall energy use and minimise the carbon footprint. 12 LITHIUM AUSTRALIA SUSTAINABILITY REPORT 2024 Water Management Lithium Australia is committed to responsible water usage and conservation practices as part of its sustainability strategy. The Company recognises the importance of water as a critical resource and strives to minimise its consumption and manage water quality effectively. We continuously seek to optimise water usage across our operations. In the Battery Materials division, the RC Process is designed to maximise water efficiency, reducing the amount of water required for production processes. In our Battery Recycling Division, the Campbellfield facility, stormwater management systems have been installed to capture and utilise stormwater, reducing the reliance on potable water. These systems ensure that stormwater is not contaminated by recycling activities, as all processes are conducted indoors with proper containment measures. Lithium Australia ensures that wastewater produced in its operations is managed responsibly. The Campbellfield facility produced approximately 4 kL of wastewater in FY24. This wastewater is considered report