Li-Cycle, a leading global company in lithium-ion battery resource recovery, is excited to announce the resumption of its collaboration with Glencore International AG, a wholly-owned subsidiary of Glencore plc, one of the world’s leading producers, recyclers, and marketers of nickel and cobalt for lithium-ion batteries. Together, the companies will assess the technical and economic feasibility of establishing a new recycling hub in Portovesme, Italy. This collaboration includes a comprehensive concept and pre-feasibility study, which will be led and funded by Glencore, with Li-Cycle providing critical technical expertise and support.
The proposed project will make use of the infrastructure and equipment at Glencore’s existing Portovesme metallurgical complex located in Sardinia, Italy. Li-Cycle will integrate its patented Spoke & Hub Technologies™ to process black mass—an important byproduct of battery recycling—into vital battery materials, including lithium, nickel, and cobalt. These materials will be sourced from Glencore’s commercial network and Li-Cycle’s existing Spoke recycling facility in Magdeburg, Germany. The collaboration is intended to ensure the efficient recovery of these critical materials, essential for the production of lithium-ion batteries.
Once fully operational, the Portovesme Hub is expected to provide a significant boost to the European battery supply chain by creating a sustainable post-processing recycling capacity. This initiative is in alignment with the European Union’s goals for a localized and circular economy in battery manufacturing. The facility will help meet the EU’s minimum recycled content requirements for new batteries and its target of recycling at least 15% of strategic raw materials by 2030.
Ajay Kochhar, Li-Cycle’s President and CEO, expressed enthusiasm for the continued collaboration, stating, “We are pleased to continue our assessment and study of the Portovesme Hub project with Glencore. We believe this project holds substantial promise in addressing the current lack of post-processing recycling capacity in Europe. This will be crucial for creating a sustainable and localized closed-loop battery supply chain while offering a secondary source of essential battery materials.”
The Portovesme Hub would be a key element in addressing the growing demand for responsibly sourced battery materials in Europe. The project aims to provide a sustainable solution to the European market’s increasing need for raw materials used in lithium-ion batteries, with a focus on ensuring these materials are sourced through environmentally responsible recycling practices.
Li-Cycle’s collaboration with Glencore is particularly timely, as the company continues to work on securing the full funding package necessary to restart construction of its flagship Rochester Hub project. The Rochester Hub, which is located in the United States, is a key component of Li-Cycle’s broader vision for expanding its recycling network and establishing more localized battery recycling capacity.
In connection with these efforts, Li-Cycle recently reached a major milestone with the announcement of a $475-million loan facility from the U.S. Department of Energy (DOE). This loan facility is expected to provide a crucial financial foundation for the Rochester Hub project, and Li-Cycle is actively focused on securing the additional funding needed to meet the remaining conditions for the first advance under the DOE Loan Facility. The company is also concentrating on optimizing its Spoke business by enhancing its core Generation 3 Spoke recycling facilities, ensuring that its operations continue to meet the growing demand for battery materials.
Li-Cycle’s collaboration with Glencore is also intertwined with the financial structure of the company. Following the recent closing of the DOE Loan Facility, a modification of the first tranche of unsecured convertible notes issued to Glencore in May 2022 will take effect. This modification, scheduled for December 9, 2024, will result in several changes to the terms of the notes, including adjustments to the maturity date, interest rate, and conversion price. As a result, Glencore’s beneficial ownership in Li-Cycle is expected to increase to approximately 66% on a pro forma, fully-diluted basis. Li-Cycle will provide definitive details on these changes in an upcoming Current Report on Form 8-K.
Overall, the continued partnership between Li-Cycle and Glencore reflects both companies’ commitment to advancing sustainable solutions for the global battery supply chain. By focusing on responsible recycling practices and the circular economy, the two companies aim to play a leading role in the transition to a more sustainable energy future.
