Glencore, the Swiss-British commodities trading company, and Li-Cycle, the Canadian and US based lithium-ion battery recycler, announced they will establish a commercial framework for recycled battery raw materials from Li-Cycle’s US Rochester hub.
The framework means that Li-Cycle secures a 100% off-take agreement with Glencore for the mixed hydroxide precipitate (MHP) production from the hub on market terms. The expected annual production is up to approximately 8,250 tonnes of lithium carbonate and 72,000 tonnes of MHP.
The project’s nameplate processing capacity remains at 35,000 tonnes of black mass annually. Li-Cycle already had commercial agreements regarding lithium-carbonate take-off with Glencore and Traxys North America, which now will be amended and restated.
Separately, Li-Cycle said on 7 November it secured a $475 million loan facility from the US Department of Energy. This is $100 million more than the original conditional commitment and, according to the company, “the first DOE loan to be finalised for a battery resource recovery facility and sustainable lithium-ion battery materials recycling company.” Net profit in the third quarter was $56.5 million, compared to a loss of $30.7 million in Q3 2023.
Li-Cycle has now completed its technical review of the MHP scope for the Rochester hub: Earlier this year, Li-Cycle confirmed the technical viability through an internal study and refined cost estimates.
Ajay Kochhar, Li-Cycle’s CEO and president, said: “The amendment to our commercial contracts with Glencore and Traxys and completion of the Rochester hub project’s technical review are positive steps that support our progress towards finalising definitive financing documentation for the proposed DOE Loan.”
Kunal Sinha, global head of recycling for Glencore and a member of Li-Cycle’s board of directors, said: “We are pleased to support Li-Cycle’s Rochester hub plan through an amended commercial framework that will include both lithium carbonate and MHP. Glencore is committed to creating a closed-loop battery materials supply chain and our ongoing partnership with Li-Cycle is a key part of this strategy.”
