Mayank Bansal, CFA
Mayank Bansal is a CFA Charterholder and heads the Equity Research team at Kapitales Research, with over 5 years of experience analysing global equity markets. He leads fundamental, data-driven research combining rigorous financial analysis with macro trends.
4 ASX Battery Recycling Stocks to Watch in 2027: Can Spent Batteries Become a Growth Story?
Highlights
Every phone, power tool and home battery wears out eventually, and the metals inside are too valuable to bury. From 1 October 2026, businesses selling or importing batteries in NSW must help pay to have them gathered up and recycled.
The catch for you is that few ASX companies recover battery materials at all. Late October 2026 quarterly reports show just four with real recovery work and dated figures, and none held more than AU$11 million in cash at 30 September. So the real question is which ones have the cash and milestones to grow with this market.
Picking ASX Battery Recycling Stocks: Three Checks That Matter
Start with black mass, the dark powder left after spent batteries are shredded, holding lithium, nickel, cobalt and graphite. Then check revenue, cash runway and whether deals are binding or just a memorandum of understanding (MoU), a non-binding agreement to negotiate.
1. Livium Ltd (ASX: LIT)
Livium, formerly Lithium Australia, owns Envirostream, a battery recycler in Derrimut, Victoria. In the September 2026 quarter, it earned AU$1.84 million in revenue, up from AU$1.47 million a year earlier, at a 52% gross margin, and collected 248 tonnes of batteries.
On 2 November 2026, Livium said it and Sumitomo Corporation were evaluating a black mass expansion at Derrimut, though nothing is binding. The trade-off is cash of AU$3.25 million at 30 September.
What to watch: a binding Sumitomo deal and higher collections under the NSW scheme.
2. Iondrive Limited (ASX: ION)
Iondrive's IONSolv process pulls metals out of black mass, magnets and other waste. Its 30 October 2026 quarterly said it will run its battery pilot at an outside facility, targeting completed pilot runs by July 2027. Cash was AU$5.1 million at 30 September, but its priority is now a US$11.9 million US rare earth magnet module, not batteries. What to watch: a signed pilot facility deal and battery results before July 2027.
3. Cobalt Blue Holdings Limited (ASX: COB)
Cobalt Blue is mainly developing the Kwinana Cobalt Refinery in Western Australia. Working with CSIRO, it separated a 70-85% graphite concentrate from black mass, which CSIRO purified to above 99.95%, its 29 October 2026 quarterly said. Cash was only AU$2.85 million at 30 September, and the refinery still needs funding. What to watch: results from testing that graphite in battery anodes, the negative side of a cell.
4. Talga Group Ltd (ASX: TLG)
Talga makes graphite anode material in Sweden. On 13 August 2025, it launched Talnode-R, an anode made from recycled battery graphite purified to 99.95%, and in the September 2026 quarter it signed an MoU with Fortum Battery Recycling. It held AU$10.8 million in cash at 30 September, but recycling is a side stream to natural graphite. What to watch: a paying Talnode-R customer or a binding Fortum agreement.
How to Track ASX Battery Recycling Stocks in 2027
Each quarter, compare recycling revenue, tonnes processed, cash at quarter end and cash spent. Livium is the only one with recycling sales, while the other three are still proving their processes.
Also follow whether other states copy the NSW scheme. More batteries flowing to recyclers could help all four, but small balance sheets make fresh capital raisings a real possibility, so treat these as names to research and watch.
Note- All data presented is based on information available at the time of writing.
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