Supports future recycling leader toward ongoing facility construction.

Almost two years after its initial $200 million investment from Glencore plc, Li-Cycle Holdings Corp. has announced a new $75 million strategic investment from the Swiss commodities trading and mining company to help the recycling company continue to position itself as a future leader in the production of 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," said Li-Cycle CEO Ajay Kochhar. "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."

Li-Cycle Holdings Corp.

Projected to commence commissioning late 2023, Li-Cycle, instead, had to pause construction of its planned recycling facility in Rochester, New York, due to escalating costs.

At the end of November 2023, Li-Cycle made the announcement that it would need to pause the construction of its planned Rochester, New York, recycling hub due to escalating costs that are ongoing in the U.S.

Taking a moment to reassess and reevaluate its predicament, Li-Cycle formed a committee from independent and unbiased members of its board, which excluded Glencore's representative, to conduct a robust process to review and evaluate potential financial and strategic alternatives.

After careful deliberation, to help offset the rising costs, Li-Cycle entered into this agreement with Glencore.

"As part of our previously announced comprehensive review, Li-Cycle is continuing to review our global recycling network," said Li-Cycle Executive Chairman Tim Johnston. "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."

As announced in 2022, Glencore designated Li-Cycle as one of its preferred recycling partners, with the companies entering 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.

The latest investment is through a senior secured convertible note for $75 million. After five years, this will convert into common shares of Li-Cycle at the initial price of 53 cents per share.

For the complete breakdown of the financial terms established between Glencore and Li-Cycle, you can read the full release here.

"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," said Global Head of Recycling at Glencore, Kunal Sinha. "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."