Recycler Li-Cycle Holdings has formed a strategic partnership with materials firm Glencore to deliver primary and recycled lithium-ion battery metals.
The firms have implemented a global feedstock supply agreement under which Glencore will supply all types of manufacturing scrap and end-of-life lithium-ion batteries to Li-Cycle.
Upon completion of the commercial agreements, Glencore will make a $200 million investment in Li-Cycle and has had Kunal Sinha, Glencore’s head of recycling, nominated to the Canadian firm’s board of directors.
The $200 million investment will provide Li-Cycle with capital to complete its Rochester Hub in New York, US, and the five Spokes in development, and their operating needs for the next two years.
Li-Cycle and Glencore have also entered into a non-binding Term Sheet for global, long-term strategic contracts, which would complement Li-Cycle’s existing off-take and marketing agreements, including:
- Supply of black mass to Li-Cycle’s Hubs
- Off-take of black mass from Li-Cycle’s Spokes
- Off-take of battery-grade end products produced by Li-Cycle’s Hubs
- Off-take of by-products from Li-Cycle’s Spokes and Hubs, and
- Supply of sulfuric acid, one of the key input reagents for Li-Cycle’s Hubs
Glencore’s financial investment is subject to customary closing conditions and the execution of the commercial agreements described above.
The commercial agreements are expected to be finalised and the financial investment is expected to close in Li-Cycle’s third fiscal quarter 2022.
Investment in battery recycling
Once completed, the Glencore investment— together with the previously announced investments by LG Chem and LG Energy Solution and the investment made by an affiliate of Koch Strategic Platforms— will bring Li-Cycle’s total capital to $350 million since its August 2021 NYSE listing.
Last month, LG Chem and LG Energy Solution recognised Li-Cycle as their preferred lithium-ion battery recycling partner in North America.
The three companies entered into the collaboration in order to be supportive of growing global market demand for lithium-ion batteries and critical materials.