Company secures 100% off-take agreement with
Glencore for the mixed hydroxide precipitate (“MHP”) production
from the Rochester Hub on market terms
Li-Cycle completes Rochester Hub technical
review under the proposed MHP scope and expects annual production
of up to approximately 8,250 tonnes of lithium carbonate and 72,000
tonnes of MHP at the project
Amended commercial agreements support progress
toward the finalization of the definitive financing documentation
required for the U.S. Department of Energy (“DOE”) loan
Li-Cycle Holdings Corp. (NYSE: LICY) (“Li-Cycle” or the
“Company”), a leading global lithium-ion battery resource recovery
company, is pleased to announce that it has entered into an
agreement with Glencore Ltd. (“Glencore”) covering the off-take of
100% of the MHP to be produced at its Rochester Hub.
By amending and restating certain of its existing commercial
agreements with Glencore and Traxys North America LLC (“Traxys”),
the Company has established the commercial framework for the
proposed MHP scope for the Rochester Hub project. Glencore and
Traxys’ existing off-take rights covering lithium carbonate
production from the Rochester Hub are not affected by these
amendments.
Under the amended and restated commercial agreements, Glencore
has agreed to purchase all of the Company’s MHP production at the
Rochester Hub on agreed commercial terms based on market prices for
the nickel and cobalt contained within the MHP. The parties have
also agreed to extend the scope of the existing off-take agreements
to cover material produced for Li-Cycle under tolling agreements
with third parties. Traxys will also receive certain payments
related to the MHP production for the duration of their off-take
agreement, which has been adjusted to take into account the
proposed MHP scope for the Rochester Hub. The payment terms and
working capital facilities under both the Traxys and Glencore
commercial agreements have also been adjusted to align with the
requirements of the proposed loan to Li-Cycle under the DOE’s
Advanced Technology Vehicles Manufacturing program (“DOE
Loan”).
The revised Glencore commercial agreements were completed in
parallel with the ongoing effort to finalize the DOE Loan.
Rochester Hub Technical Review
The Company has completed its technical review of the MHP scope
for the Rochester Hub. Earlier this year, Li-Cycle confirmed the
technical viability of the MHP scope through an internal study,
advanced the go-forward execution plan for the Rochester Hub, and
refined cost estimates with the local market to evaluate the
project’s total cost estimate.
Li-Cycle expects to produce up to approximately 8,250 tonnes of
battery-grade lithium carbonate and up to approximately 72,000
tonnes of MHP annually at the Rochester Hub under the MHP scope.
The project’s nameplate processing capacity remains at 35,000
tonnes of black mass annually.
The proposed MHP scope is part of the changes to the Rochester
Hub’s development strategy to potentially reduce the construction
scope. The MHP process that is expected to be deployed at the
project was proven in Li-Cycle’s large-scale pilot program, which
was completed in 2019-2020, and is included in Li-Cycle’s patented
technology portfolio.
Ajay Kochhar, Li-Cycle’s President and CEO, commented:
“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 finalizing
definitive financing documentation for the proposed DOE Loan.
Establishing a commercial framework for MHP alongside our existing
lithium carbonate off-take agreements provides Li-Cycle with a
strong market foundation for the Rochester Hub project.
“We are also pleased to see continued support from Glencore, a
key strategic partner and investor. We believe that Glencore’s
support indicates its confidence in our technology and our overall
Spoke & Hub business model. We also believe our Spoke & Hub
Technologies™ will continue to support a sustainable closed-loop
battery supply chain and provide value for our customers and
stakeholders.”
Kunal Sinha, Global Head of Recycling for Glencore and a
member of Li-Cycle’s Board of Directors, commented: “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.”
Additional information regarding this announcement may be found
in a Current Report Form 8-K filed with the U.S. Securities and
Exchange Commission.
About Li-Cycle Holdings Corp.
Li-Cycle (NYSE: LICY) is a leading global lithium-ion battery
resource recovery company. Established in 2016, and with major
customers and partners around the world, Li-Cycle’s mission is to
recover critical battery-grade materials to create a domestic
closed-loop battery supply chain for a clean energy future. The
Company leverages its innovative, sustainable and patent-protected
Spoke & Hub Technologies™ to recycle all different types of
lithium-ion batteries. At our Spokes, or pre-processing facilities,
we recycle battery manufacturing scrap and end-of-life batteries to
produce black mass, a powder-like substance which contains a number
of valuable metals, including lithium, nickel and cobalt. At our
future Hubs, or post-processing facilities, we plan to process
black mass to produce critical battery-grade materials, including
lithium carbonate, for the lithium-ion battery supply chain. For
more information, visit https://li-cycle.com/.
Forward-Looking Statements
Certain statements contained in this press release may be
considered “forward-looking statements” within the meaning of the
U.S. Private Securities Litigation Reform Act of 1995, Section 27A
of the U.S. Securities Act of 1933, as amended, Section 21 of the
U.S. Securities Exchange Act of 1934, as amended, and applicable
Canadian securities laws. Forward-looking statements may generally
be identified by the use of words such as “believe”, “may”, “will”,
“continue”, “expect”, “should”, “plan”, “potential”, “future”, or
other similar expressions that predict or indicate future events or
trends or that are not statements of historical matters, although
not all forward-looking statements contain such identifying words.
Forward-looking statements in this press release include but are
not limited to statements about: the Company’s expectation that it
will execute the proposed DOE Loan; the expected production volumes
and processing capacity at the Rochester Hub for lithium carbonate
and MHP; and the expectation that the Company’s Spoke & Hub
Technologies™ will continue to support a sustainable closed-loop
battery supply chain and provide value for the Company’s customers
and stakeholders.
These statements are based on various assumptions, whether or
not identified in this press release, including but not limited to
assumptions regarding Li-Cycle’s ability to finalize the terms of,
and execute, the proposed DOE Loan; the timing, scope and cost of
Li-Cycle’s projects, including paused projects; the processing
capacity and production of Li-Cycle’s facilities; Li-Cycle’s
ability to source feedstock and manage supply chain risk;
Li-Cycle’s ability to increase recycling capacity and efficiency;
Li-Cycle’s ability to obtain financing on acceptable terms or at
all; the success of Li-Cycle’s cash preservation plan; the outcome
of the go-forward strategy of the Rochester Hub; Li-Cycle’s ability
to retain and hire key personnel and maintain relationships with
customers, suppliers and other business partners. There can be no
assurance that such estimates or assumptions will prove to be
correct and, as a result, actual results or events may differ
materially from expectations expressed in or implied by the
forward-looking statements.
These forward-looking statements are provided for the purpose of
assisting readers in understanding certain key elements of
Li-Cycle’s current objectives, goals, targets, strategic
priorities, expectations and plans, and in obtaining a better
understanding of Li-Cycle’s business and anticipated operating
environment. Readers are cautioned that such information may not be
appropriate for other purposes and is not intended to serve as, and
must not be relied on, by any investor as a guarantee, an
assurance, a prediction or a definitive statement of fact or
probability.
Forward-looking statements involve inherent risks and
uncertainties, most of which are difficult to predict and many of
which are beyond the control of Li-Cycle and are not guarantees of
future performance. Li-Cycle believes that these risks and
uncertainties include, but are not limited to, the following:
Li-Cycle’s inability to close the proposed DOE Loan and, if closed,
to satisfy the drawdown conditions and access funding under the
loan; Li-Cycle’s inability to develop the Rochester Hub as
anticipated or at all, and other future projects including its
Spoke network expansion projects in a timely manner or on budget or
that those projects will not meet expectations with respect to
their productivity or the specifications of their end products;
risk and uncertainties related to Li-Cycle’s ability to continue as
a going concern; Li-Cycle’s insurance may not cover all liabilities
and damages; Li-Cycle’s reliance on a limited number of commercial
partners to generate revenue; Li-Cycle’s failure to effectively
remediate the material weaknesses in its internal control over
financial reporting that it has identified or its failure to
develop and maintain a proper and effective internal control over
financial reporting; risks of litigation or regulatory proceedings
that could materially and adversely impact Li-Cycle’s financial
results; expectations related to the outcome of future litigation;
general economic conditions; currency exchange and interest rates;
compensation; and inflation. These and other risks and
uncertainties related to Li-Cycle’s business are described in
greater detail in the sections titled “Item 1A. Risk Factors” and
“Item 7. Management’s Discussion and Analysis of Financial
Condition and Results of Operation—Key Factors Affecting Li-Cycle’s
Performance” in its Annual Report on Form 10-K and the sections
titled “Part II. Other Information—Item 1A. Risk Factors” and “Part
I. Financial Information—Item 2. Management’s Discussion and
Analysis of Financial Condition and Results of Operation—Key
Factors Affecting Li-Cycle’s Performance” in its Quarterly Reports
on Form 10-Q, in each case filed with the U.S. Securities and
Exchange Commission and the Ontario Securities Commission in
Canada. Because of these risks, uncertainties and assumptions,
readers should not place undue reliance on these forward-looking
statements. Actual results could differ materially from those
contained in any forward-looking statement.
Li-Cycle assumes no obligation to update or revise any
forward-looking statements, except as required by applicable laws.
These forward-looking statements should not be relied upon as
representing Li-Cycle’s assessments as of any date subsequent to
the date of this press release.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20241031827195/en/
Investor Relations & Media Louie Diaz Sheldon D'souza
Investor Relations: investors@li-cycle.com Media:
media@li-cycle.com
Li Cycle (NYSE:LICY)
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