Li-Cycle receives $75 million investment from Glencore

March 13, 2024

Li-Cycle Holdings Corp. a global lithium-ion battery resource recovery company announced that it has entered into a $75 million senior note financing agreement with an affiliate of Glencore plc.

This follows a $200 million investment made by Glencore in 2022. Glencore said last year that it was planning to develop a recycling hub in Europe with Li-Cycle to produce materials, including lithium carbonate, to respond to a global shortage of key raw materials for a fast growing production of electric cars.

Glencore had previously designated Li-Cycle as one of its preferred recycling partners, and Li-Cycle and Glencore entered into a strategic commercial partnership aimed to create an integrated platform to supply a global customer base with both primary and recycled critical battery materials.

“We are pleased to secure an additional $75 million investment from Glencore, following Glencore’s June 2022 investment, to improve our liquidity position while we continue our ongoing comprehensive review process. This financing enhances Li-Cycle and Glencore’s existing long-term, strategic partnership and represents an interim step in our funding strategy to support Li-Cycle’s future plans,” Ajay Kochhar, Li-Cycle co-founder and CEO, said. “We also continue to work closely with the U.S. Department of Energy on the conditional commitment for a loan of up to $375 million.”

Tim Johnston, Li-Cycle co-founder and Executive Chairman, commented: “As part of our previously announced comprehensive review, Li-Cycle is continuing to review our global recycling network. We are also reviewing our go-forward strategy for the paused Rochester Hub, including analyzing potential end-product mix options and construction strategy. We believe the demand for critical battery materials continues to accelerate and Li-Cycle continues to work to position itself as a future leader in the production of critical battery materials through our sustainable, safe, and patented recycling technology.”

Kunal Sinha, Global Head of Recycling for Glencore, and Non-Executive Director of Li-Cycle’s Board of Directors, commented: “Glencore is committed to bringing scalable and sustainable circularity into the supply chain of battery materials. Our original investment in Li-Cycle, alongside key commercial agreements, formed part of this strategy. Today, we are pleased to further support Li-Cycle through this additional $75 million investment so both Li-Cycle and Glencore can continue to build the battery circularity platform of choice for our customers.”

Glencore is a battery feedstock partner for Li-Cycle’s Spoke facilities, as well as a future supplier of both black mass and key reagents for Li-Cycle’s future Hub facilities. Glencore complements Li-Cycle’s existing partners through off-take and marketing of Li-Cycle’s end products and certain by-products produced and expected to be produced at certain of the company’s Spokes and Hubs.

Following the announcement by the company in October 2023 in respect of the Rochester Hub, the company formed a special committee (SC) composed solely of independent and disinterested members of the Board (and which excluded Glencore’s Board representative). The SC engaged Moelis & Company LLC, a leading global investment bank (Moelis), as its financial advisor and placement agent. The SC, with the assistance of Moelis, conducted a robust process to review and evaluate potential financial and strategic alternatives available to the company. After a careful review and assessment of the alternatives identified by the SC through this process, the company entered into the agreement with Glencore.



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