The natural commodities firm Glencore made an offer to acquire the Canada-based lithium battery recycler Li-Cycle, as part of a deal to settle operational and financial issues it has.
It said it wanted to start discussions with Li-Cycle and its stakeholders as soon as possible in a letter to the board chair which is dated 14th March.
The battery recycler, which has a market cap of $10.45 million according to London stock exchange group data, is in debt to Glencore convertible to around 84 million shares in the company according to Reuters.
Li-Cycle, based in Toronto, also had amended its limited duration shareholder rights plan in 2024, to exempt Glencore Canada. This allowed Glencore to acquire more than 20% of the company.
It said that its board has formed a special committee to go over Glencore’s letter and its proposed acquisition, and will act in the best interest of the company.
Li-Cycle spokesperson Louie Diaz, who declined further comment, said: “There can be no assurance that any particular transaction will be proposed, recommended or consummated.”
The company said it will update the market as appropriate or required.
The recycler produces black mass in its facilities in Arizona, Alabama and Ontario.
It has plans to develop a facility in Rochester to break down black mass into lithium and other metals. This would be the only facility of its kind in the US.
In November 2024, Li-Cycle was handed a lifeline through a $475 million loan by the US Department of Energy. The company had been having cost overruns and technical issues.
A spokesperson from Glencore told BEST it had no further comment about the deal other than what was already reported.
