Interim CEO Richard Sadowsky of Canada-based RecycLiCo, which specialises in lithium-ion battery recycling, announced it will shift focus to research into recycling critical minerals this year.
In a letter to shareholders, Sadowsky called it an “understatement” that 2024 was a challenging year for the battery recycling sector.
Issues such as a slowdown in electric vehicle (EV) demand, low commodity prices and political and geopolitical developments on recycling regulation affected performance for RecycLiCo and others, he said.
Despite having $15.5 million in cash and spending on average $50,000 a month, the company wants to maintain what it calls a “lean culture”, it said.
This includes avoiding “speculative, capital-intensive projects ‘at this time’” and re-assessing the joint venture partnership it has with a Taiwan-based company, he said.
The letter also cites the financial difficulties faced by Molicel and Northvolt as reasons to avoid taking this direction, it said.
In his note, Sadowsky said the company has a new board and management to make “course corrections” to ensure the company’s financial position and industrial relevance.
This will include being more self-reliant by having a focus on in-house research and development teams with scientists, engineers and technicians.
The company believes the future increase in demand for critical minerals and battery upcycling will require its technology. It is interested in exploring opportunities in critical minerals outside the battery industry, it said.
The company is interested in government funding and needs to have more in-house scientific and technical capabilities beforehand, it said.
Sadowsky said: “We are optimistic, but we must remain vigilant and flexible in our responses to what will be an uncertain and changing landscape.”
Photo: Interim CEO Richard Sadowsky, RecycLiCo
