Lithium-ion battery recycler Li-Cycle Holdings Corp. will increase the capacity of the facility its developed in New York, US by more than 40%.
The Canadian firm will increase the input processing capacity of the ‘Hub’ facility from 25,000 tonnes to 35,000 tonnes of “black mass” annually (equivalent to around 90,000 tonnes of lithium-ion battery equivalent feed annually).
The Hub will turn black mass into battery grade materials to be returned to the lithium-ion battery supply chain .
The company estimates the Hub will require a total capital investment of around $485 million (+/-15%), which may be funded from existing balance sheet cash.
The Hub will be fully integrated with Li-Cycle’s existing network of facilities across North America that turns end-of-life batteries and battery manufacturing scrap into “black mass” containing nickel, cobalt and lithium.
Li-Cycle’s Spoke facilities will be the primary suppliers of feedstock for the Hub.
Once the Hub is fully operational, Li-Cycle expects to become one of the biggest US-based suppliers of battery grade advanced materials.
Based on independent industry forecasts (including from Benchmark Mineral Intelligence) and the firm’s internal analysis, Li-Cycle estimates there could be nearly 250,000 tonnes of lithium-ion batteries available for recycling from manufacturing scrap in North America alone by 2025.
Multi-Year Strategic Collaboration with LG
Li-Cycle, LG Chem, and LG Energy Solution have entered into a ten-year manufacturing scrap supply and nickel sulphate off-take agreement non-binding letter of intent.
The firms intend to cooperate on recycling nickel-bearing lithium-ion battery scrap and certain other lithium-ion battery materials to create a closed-loop ecosystem.
Beginning in 2023, Li-Cycle will supply LGES and LGC with 20,000 tonnes of nickel contained in nickel sulphate from its Rochester Hub facility in New York.
LGC and LGES together will make a $50 million equity investment in Li-Cycle at a price of $11.32/per common share, upon completion of the commercial agreements by March 13, 2022.