Li-Cycle, VinES announce strategic, long-term battery recycling agreement

Lithium-ion battery recycler Li-Cycle Holdings Corp., Toronto, and Vietnam-based VinES Energy Solutions have signed an agreement for a long-term recycling partnership. Starting in 2024, Li-Cycle will become VinES’ strategic and preferred recycling partner for VinES’ Vietnamese-sourced battery materials.

In a news release, Li-Cycle says, consistent with its strategy to grow its recycling capacity in conjunction with customer demand, the agreement further contemplates the possible construction of a dedicated Spoke located close to VinES manufacturing site. The company adds that the potential Spoke has the opportunity to benefit from the growing local demand for lithium-ion battery recycling solutions, driven by strong economic growth and an increasing manufacturing presence in Vietnam.

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An investment decision regarding the potential Spoke facility is expected to be made in 2025. In the meantime, Li-Cycle says it will facilitate the processing of VinES’ material utilizing Li-Cycle’s North American Spoke network.

“By recycling battery production scrap and used batteries into the global mobility and energy storage industries, we can achieve a sustainable supply chain while reducing environmental impacts,” VinES CEO Pham Thuy Linh says. “We believe in the strategic collaboration will strongly accelerate both companies’ missions of creating a sustainable future for all.”

Tim Johnston, co-founder and executive chair of Li-Cycle, says the company is pleased to advance its collaboration with VinES and become a strategic and long-term recycling partner for all VinES batteries and battery materials generated in Vietnam.

“This agreement supports our shared goals of creating a sustainable and closed-loop battery supply chain,” Johnston adds. “It also advances Li-Cycle’s position as the industry’s preferred global recycling partner as we continue to strengthen our commercial relationships and scale our innovative and environmentally friendly battery recycling technologies around the world.”

To build on a partnership first announced in 2022, the companies will also continue to explore global recycling solutions for VinFast, a global electric vehicle (EV) manufacturer in Vietnam and Southeast Asia.

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VinES and VinFast are part of Vingroup, a private conglomerate based in Vietnam that focuses on electrified transportation. VinFast has expanded its business to the North American and European markets with the aim to become one of the leading global EV manufacturers.

VinES is a company that specializes in the research, development and manufacturing of advanced batteries for mobility and energy storage applications. The company says it has recently commissioned a lithium-ion battery cell manufacturing facility in Hai Phong, Vietnam, and expects to further expand its production capacity in the country.

Li-Cycle opened an office in Singapore in December 2022 to support its connectivity to the Asia market and its efforts to continue building and expanding its commercial relationships with manufacturers based in Asia.

“Our office in Singapore represents an important connection point to Asia, and we are excited to continue expanding Li-Cycle’s global footprint,” says Dawei Li, Li-Cycle’s regional president, APAC region. “We look forward to supporting VinES’ recycling needs and strengthening our commercial relationships in this important market.”