Li-Cycle Holdings Corp., a leading global lithium-ion battery resource recovery company, announced that it has resumed collaboration with Glencore International AG, a wholly-owned subsidiary of Glencore plc. The companies will jointly assess the technical and economic viability of developing a new Hub facility in Portovesme, Italy, including conducting a concept and pre-feasibility study. Glencore is expected to lead and fund the study, with Li-Cycle providing technical expertise and support.
The proposed Portovesme Hub aims to utilize infrastructure and equipment at Glencore’s existing metallurgical complex in Sardinia, Italy. By leveraging Li-Cycle’s patented Spoke & Hub Technologies™, the facility would produce critical battery materials such as lithium, nickel, and cobalt from recycled battery content. Black mass processed at the Hub would be supplied from Glencore’s commercial network and Li-Cycle’s Spoke recycling facility near Magdeburg, Germany.
Once operational, the Portovesme Hub is expected to support the European battery supply chain by providing sustainable post-processing recycling capacity. The project aligns with the European Union’s goals under the Battery Regulation and Critical Raw Materials Act, aiming to meet minimum recycled content requirements for new batteries and achieve at least 15% recycling of strategic raw materials by 2030.
“We are pleased to continue our assessment and study of the Portovesme Hub project with Glencore,” said Ajay Kochhar, Li-Cycle’s President and CEO. “We believe the project has significant potential and can address the lack of post-processing recycling capacity in Europe needed for a localized closed-loop battery supply chain and provide a sustainable secondary source of critical battery materials. Separately, we remain focused on securing a full funding package needed to restart construction at our flagship Rochester Hub project and enable the first advance under the finalized DOE loan facility.”
Following the recently announced $475 million loan facility with the U.S. Department of Energy (DOE Loan Facility), Li-Cycle remains focused on securing the complete funding package required to restart construction at its flagship Rochester Hub project. The funding will also enable the first advance under the finalized DOE Loan Facility. Additionally, Li-Cycle continues to strengthen its Spoke business through optimization initiatives and improvements at its core Generation 3 Spoke recycling facilities.
The closing of the DOE Loan Facility triggers an automatic modification of the first tranche of unsecured convertible notes issued by Li-Cycle to Glencore on May 31, 2022, as amended on March 25, 2024. Effective December 9, 2024, the modification will adjust the maturity date, interest rate, and conversion price of the First A&R Glencore Convertible Note, introducing mandatory redemption provisions and security interests. This adjustment is expected to increase Glencore’s beneficial ownership in Li-Cycle on a pro forma, fully-diluted basis to approximately 66%.
Definitive information regarding the modification will be included in a Current Report on Form 8-K to be filed after the completion of the modification.
About Li-Cycle Holdings Corp.: Li-Cycle (NYSE: LICY) is a leading global lithium-ion battery resource recovery company established in 2016. With major customers and partners worldwide, Li-Cycle’s mission is to recover critical battery-grade materials to create a domestic closed-loop battery supply chain for a clean energy future. The company leverages its innovative, sustainable, and patented Spoke & Hub Technologies™ to recycle various types of lithium-ion batteries. At its Spokes, Li-Cycle processes battery manufacturing scrap and end-of-life batteries to produce black mass, a powder-like substance containing valuable metals like lithium, nickel, and cobalt. At its future Hubs, Li-Cycle plans to process black mass to produce critical battery-grade materials, including lithium carbonate, for the lithium-ion battery supply chain.
Source: Li-Cycle
