RecycLiCo Battery Materials Inc. and Zenith Chemical Corporation have mutually agreed to terminate their joint venture aimed at constructing a battery recycling facility in Taiwan. The decision marks the abandonment of the planned project, following the execution of a definitive Mutual Release and Termination Agreement on April 28, 2025.
Under the terms of the agreement, RecycLiCo will transfer its entire stake of 3,000,000 common shares in RecycLiCo Zenith Battery Materials Technology Co. to Zenith for a total of USD $581,114.08. In return, Zenith will provide RecycLiCo with 4,000,000 common shares and 6,000,000 share purchase warrants that were previously issued under the joint venture agreement. RecycLiCo retains ownership of its proprietary technology as part of the settlement.
The agreement ensures the complete resolution of all rights and obligations between the two companies concerning the joint venture. Upon the closing of the agreement, pending regulatory approval from Taiwan’s Department of Investment Review, Zenith will gain full ownership of the joint venture. Zenith is also responsible for discontinuing the use of the RecycLiCo name and dissolving the joint venture entity in accordance with Taiwanese regulations.
“This decision reflects a mutual recognition by both Zenith and the Company of the evolving world economic and geopolitical environment,” said Richard Sadowsky, Interim Chief Executive Officer of RecycLiCo. “Market conditions are not what they were in 2022 when the original joint venture feasibility study was conducted. There have been changes in battery material supply streams and increased capitalization costs relative to the initial projections, which were prepared during a period of elevated lithium prices. We thank our partners at Zenith for their support and collaboration.”
“The Company remains firmly committed to its global commercialization strategy and focus on flexible, capital-efficient growth. By eliminating the capital commitments associated with the joint venture, we have significantly strengthened our cash position and extended our financial runway to nearly a decade at current spending levels. We can now direct more resources toward enhancing our scientific and technical capacity and exploiting opportunities in our core growth markets, including potential strategic investments in companies with complementary technology.“
Source: Globe Newswire
