Glencore invests $200M in Li-Cycle

Toronto-based Li-Cycle Holdings Corp., a lithium-ion battery recycler in North America, has established long-term commercial agreements with Glencore, a Switzerland-based provider of primary metals for the production of electric vehicle (EV) batteries. Glencore also has completed its previously announced $200 million investment in Li-Cycle through the purchase of a five-year convertible note. The note has a five-year term and is convertible into common shares of the company at a conversion price of $9.95 per common share. In addition, Glencore has entered into an amended and restated standstill agreement, and Li-Cycle has granted certain registration rights to Glencore.

The companies had announced this partnership in early May. With commercial agreements in place, Li-Cycle says Glencore will become “an important partner to source battery feedstock for Li-Cycle’s Spoke facilities as well as both black mass and sulfuric acid for Li-Cycle’s Hub facilities.” Glencore also will help to market Li-Cycle’s battery-grade end products and certain byproducts produced at Li-Cycle’s Spoke and Hub facilities.

Li-Cycle reports that partnering with Glencore “will help to accelerate the path to a circular economy for critical materials in the lithium-ion battery supply chain.”

“We’re pleased to launch our strategic partnership with Glencore, enabling us to pursue our shared vision to enable sustainable, localized supply chains for electrification metals,” says Ajay Kochhar, Li-Cycle co-founder and chief executive officer. “I am confident that we can better serve our collective customers by leveraging our complementary capabilities and delivering an integrated approach by combining primary and recycled metal supply.”

He continues, “Further, Glencore’s investment bolsters Li-Cycle’s already strong balance sheet, further enhancing our ability to complete our current pipeline of spoke and hub facilities and meet our operating needs while maintaining financial flexibility.”

Li-Cycle says it also has appointed Kunal Sinha, Glencore’s head of recycling, to Li-Cycle’s board of directors. Sinha has been with Glencore since 2012. Prior to his current role, he was CEO of Glencore’s North American Sulfuric Acid business. Before joining Glencore, he worked for six years in management consulting at ZS Associates.

“We are pleased to work with Li-Cycle as a key strategic partner in closing the loop for battery metals, at scale, in localized supply chains, with a sustainable footprint that effectively combines primary as well as recycled raw materials,” Sinha says.