Updated to include 2023 results
Troubled battery recycling firm Li-Cycle announced its partner, Swiss commodities company Glencore had made a $75 million strategic investment. The cash is a stop gap that keeps the Canadian company going while it seeks longer term funding.
Li-Cycle continues to seek a $375 million loan from the US Department of Energy.
In its 2023 results, the company recorded a rise in revenue of 34% to $23.6 million and cost of sales of $81.8 million compared to $55.2 million a year before.
Net loss for the year was some $138.0 million, including $22.1 million of fair value gains on financial instruments. This compare to a $70.8 million loss in 2022. At the end of the year, the company had cash and cash equivalents of $70.6 million, after spending $334.9 million on equipment and construction at its Rochester Hub and Germany spoke.
In return for the $75 million senior convertible note, Li-Cycle said it agreed to give Glencore a security interest in substantially all of its assets. Investment bank Moelis & Company has reviewed the company’s position, and this led to the $75 million move by Glencore.
Ajay Kochhar, Li-Cycle’s co-founder and CEO, said: “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.”
Li-Cycle said Glencore has designated it a preferred recycling partner and the two have entered into a commercial partnership to supply primary and recycled battery materials. Glencore has already put $200 million into Li-Cycle, in June 2022.
Li-Cycle paused the construction of its major processing hub in Rochester, New York, in October, partially due to spiralling costs. That led to a sharp drop in net profits in the third quarter of 2023.
In December, the company was served written notice by the New York Stock Exchange that it breached Section 802.01C of the NYSE’s continued listing standards. The average closing price of Li-Cycle’s shares was less than $1.00 over a consecutive 30 trading-day period. On Friday morning in New York, it was trading at $0.79.
