Circular Economy: Li-Cycle secures an additional $75 million from Glencore

Li-Cycle Holdings Corp. (LiCycle), a leading lithium-ion battery resource recovery company on Tuesday (March 12) announced that it has secured $75 million from Glencore plc (Glencore) a multinational commodity trading and mining company.

The latest Note Purchase Agreement will enable Li-Cycle to improve its liquidity position as the company continues its comprehensive review process. Li-cycle is currently reviewing its global recycling network and the company's go-forward strategy for the paused Rochester Hub, including analyzing potential end-product mix options and construction strategy.

"This financing enhances Li-Cycle and Glencore's existing long-term, strategic partnership and represents an interim step in our funding strategy to support Li-Cycle's future. We also continue to work closely with the U.S. Department of Energy on the conditional commitment for a loan of up to $375 million," said Ajay Kochhar, Co-founder, and CEO of Li-Cycle.

The latest agreement between Li-Cycle and Glencore builds upon an existing long-term partnership. Glencore has previously designated Li-Cycle as one of its preferred recycling partners, and the two companies entered a strategic commercial partnership aimed at creating an integrated platform to supply a global customer base with both primary and recycled critical battery materials.

As part of the partnership, Glencore previously made a $200 million investment in Li-Cycle in June 2022 through the purchase of a convertible note.

"Glencore is committed to bringing scalable and sustainable circularity into the supply chain of battery materials. Our original investment in Li-Cycle, alongside key commercial agreements, formed part of this strategy," said Kunal Sinha, Global Head of Recycling for Glencore, and Non-Executive Director of Li-Cycle's Board of Directors.

"Today, we are pleased to further support Li-Cycle through this additional $75 million investment so both Li-Cycle and Glencore can continue to build the battery circularity platform of choice for our customers."

Glencore is a battery feedstock partner for Li-Cycle's Spoke facilities, as well as a future supplier of both black mass and key reagents for Li-Cycle's future Hub facilities. Glencore complements the Company's existing partners through off-take and marketing of Li-Cycle's end products and certain by-products produced and expected to be produced at certain of the Company's Spokes and Hubs.