Glencore invests a further $75 million in Li-Cycle

13 March 2024 11:28

Zurich CCGreater Zurich

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Baar/Toronto - Glencore is providing Canadian battery recycler Li-Cycle with additional liquidity amounting to $75 million. Li-Cycle, the preferred recycling partner of the Zug-based commodity trader and mining company, also received $200 million from Glencore for a convertible bond in 2022.

The commodity trader and mining company Glencore, which is based in Baar, is once again lending a helping hand to its preferred circularity partner, Li-Cycle. The Swiss producer, recycler and marketer of nickel and cobalt for the manufacture of lithium ion batteries invested $200 million in Canadian company Li-Cycle back in June 2022. According to a press release, Glencore has now acquired an additional senior secured convertible note in an aggregate principal amount of $75 million.

Glencore is Li-Cycle’s partner for battery materials that are used in Li-Cycle’s decentralized Spoke facilities and a future supplier of black mass and key reagents for Li-Cycle’s future Hub facilities. Li-Cycle is based in Toronto in the Canadian province of Ontario. Glencore complements Li-Cycle’s existing partners through the offtake and marketing of Li-Cycle’s end products and certain by-products that are set to be produced in some of the company's Hub and Spoke facilities. The terms Hub and Spoke are used to describe a logistical network.

Ajay Kochhar, co-founder and CEO of Li-Cycle, which is currently undergoing a comprehensive financial and strategic review process, emphasizes that this additional investment of $75 million from Glencore will “improve our liquidity position”. His company is continuing to “work closely with the U.S. Department of Energy on the conditional commitment for a loan of up to $375 million.”

Kunal Sinha, Global Head of Recycling at Glencore and Non-Executive Director of Li-Cycle’s Board of Directors, stresses his company’s commitment “to bringing scalable and sustainable circularity into the supply chain of battery materials.” Both investments are part of this strategy, “so both Li-Cycle and Glencore can continue to build the battery circularity platform of choice for our customers.” ce/mm


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