In simple terms, libido is another word used to describe life force, or orgone energy. You can think of it like mana.
Orgone energy is a hypothetical universal life force originally proposed in the 1930s by Wilhelm Reich. -source
To answer your second question (paraphrasing from the source article):
Libido generates orgone energy, so:
No libido -> no ...
The fact is, we don't have a clue from the series. Our best guess is the Livlaster.
Reason 1 - They were confirmed to be living things with a will, but we never really "met" them. We met the machines, but not them, which is odd.
Reason 2 - Her color style is the same as Daichi's Livlaster, so there is reasonable evidence to make the connection.
Reason 3 - ...
Tanegashima island is prominently featured, most probably due to the fact that:
The headquarters of JAXA, the Japan Aerospace Exploration Agency, the Tanegashima Space Center spaceport is located at the southeastern end of the island.
About Tanegashima Space Center:
The Tanegashima Space Center (種子島宇宙センター Tanegashima Uchū Sentā) (TNSC) is a Japanese ...
After doing a bit of research, it seems that they both did survive. In the same regard as to when Daichi fired the Boostedmagnum at the debris, supposedly killing Teppei, Daichi's Livlaster pulled the two into the same place, that Teppei was taken that let him survive the blast. It isn't very well explained, but I believe that the little girl with blue hair ...