Li-Cycle pauses Rochester Hub construction

Li-Cycle Holdings Corp., a Toronto-based lithium-ion battery (LIB) recycler, is pausing construction on its Rochester Hub project, pending completion of a comprehensive review of the go-forward strategy for the project.

With engineering and procurement for the facility largely complete, Li-Cycle says its focus currently is on on-site construction activities, and it recently has experienced escalating construction costs. Accordingly, the company expects the aggregate cost for the current scope of the project to exceed its previously disclosed guidance.

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“In light of these developments, the board of directors has decided to pause construction work on the Rochester Hub, pending a review of the project, including an evaluation of the go-forward phasing of its scope and budget, including construction strategy,” the company says in a news release.

Li-Cycle adds that it will continue to work closely with the U.S. Department of Energy (DOE) with respect to the previously announced $375 million loan commitment through the Advanced Technology Vehicles Manufacturing (ATVM) program for the project, in conjunction with the project review. The company was awarded the conditional loan in February of this year to help finance the construction of the facility that is expected to support the battery needs of approximately 203,000 electric vehicles (EVs) annually.

Initially, the company said it expected the $485 million facility, which sits on a 41-acre parcel near Rochester’s Eastman Business Park, to come online by the end of this year. When fully operational, it is expected to create about 270 jobs.

In addition to the DOE loan, Li-Cycle is eligible to receive up to $13.5 million in state funds through New York’s performance-based Excelsior Jobs Tax Credit Program once it starts meeting employment commitments outlined by Empire State Development.

“Li-Cycle is committed to continuing to support and serve its customers and strategic partners, to lead the global supply of recycled critical battery materials for a clean energy future,” the company says.

Li-Cycle expects to release its third quarter financial results Nov. 13, which will include additional updates on the company’s near-term plans and the project review process.

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The company says the Rochester Hub will use a hydrometallurgical process to recover battery-grade lithium carbonate, cobalt sulfate, nickel sulfate and other critical materials from manufacturing scrap and end-of-life batteries. The project already has secured several supply agreements for recycled LIB feedstock across the U.S. and Canada.

As part of Li-Cycle’s “Spoke & Hub Technologies” model, materials will be aggregated and processed into black mass at four current operational sites throughout North America, then shipped to the Rochester Hub for additional processing.