Li-Cycle Holdings Corp., a leading lithium-ion battery recycler in North America, has entered into long-term commercial agreements with Glencore plc, a prominent provider of primary metals for electric vehicle (EV) batteries. This strategic partnership aims to create an integrated platform that supplies a global customer base with both primary and recycled critical battery materials.
As part of the agreement, Glencore has been designated as Li-Cycle’s preferred global lithium-ion battery recycling partner. Additionally, Glencore has made a $200 million investment in Li-Cycle by purchasing a five-year convertible note. This investment is expected to enhance Li-Cycle’s financial position, supporting the completion of its pipeline of Spoke and Hub facilities and addressing its operational needs while maintaining financial flexibility.
Kunal Sinha, Glencore’s Head of Recycling, has been appointed to Li-Cycle’s Board of Directors, bringing his extensive experience to the company. This appointment underscores the collaborative nature of the partnership and reinforces the commitment to advancing sustainable supply chains for electrification metals.
Ajay Kochhar, co-founder and CEO of Li-Cycle, expressed confidence in the partnership, highlighting the combined strengths of both companies in serving their collective customers. Glencore, recognized as a top producer of cobalt and a leading producer of class I nickel globally, complements Li-Cycle’s expertise in battery recycling through its robust battery supply customer base and innovative Spoke & Hub Technologies™. Together, they aim to accelerate the transition to a circular economy for critical materials in the lithium-ion battery supply chain.
The commercial agreements stipulate that Glencore will supply battery feedstock for Li-Cycle’s Spoke facilities and provide black mass and sulfuric acid for its Hub facilities. Additionally, Glencore will support the off-take and marketing of Li-Cycle’s battery-grade end products and certain by-products generated at the Spokes and Hubs. This collaboration is expected to enhance both companies’ capabilities in delivering integrated and sustainable solutions to the EV industry.
Glencore’s investment includes terms that allow conversion into Li-Cycle’s common shares at a price of $9.95 per share, potentially resulting in Glencore holding approximately a 10% equity stake in Li-Cycle. This investment reflects Glencore’s confidence in Li-Cycle’s growth and its strategic role in the sustainable battery materials market.
Li-Cycle plans to provide further details about the partnership during its fiscal second quarter 2022 earnings webcast and conference call scheduled for June 14, 2022.
Source: Business Wire
