Li-Cycle Holdings Corp., a global leader in lithium-ion battery resource recovery, is advancing its collaboration with Glencore International AG, a key producer and marketer of nickel and cobalt. This partnership focuses on assessing the feasibility of developing a new Hub facility in Portovesme, Italy. This initiative, which includes a concept and pre-feasibility study, underscores the companies’ commitment to advancing sustainable battery recycling solutions. The study will be spearheaded and funded by Glencore, with technical contributions from Li-Cycle.
The proposed Portovesme Hub project intends to utilize Glencore’s existing metallurgical complex infrastructure in Sardinia, leveraging Li-Cycle’s proprietary Spoke & Hub Technologies™. This innovative approach would enable the production of critical battery materials, such as lithium, nickel, and cobalt, from recycled battery content. The black mass, a material rich in these essential elements, would be sourced through Glencore’s commercial network and Li-Cycle’s Spoke recycling facility in Magdeburg, Germany.
Strategic Importance of the Portovesme Hub
The Portovesme Hub is expected to significantly contribute to the European battery supply chain by providing sustainable post-processing recycling capacity. This project aligns with the European Union’s goals to establish a closed-loop battery supply chain and achieve at least 15% recycled content in strategic raw materials for new batteries by 2030. Ajay Kochhar, President and CEO of Li-Cycle, highlighted the project’s potential to fill the gap in Europe’s post-processing recycling capacity, promoting a localized and sustainable supply chain for critical battery materials.
Funding and Development Updates
In tandem with this collaboration, Li-Cycle is also focusing on its flagship Rochester Hub project in the United States. Following the U.S. Department of Energy’s $475-million loan facility approval, Li-Cycle aims to secure full funding to resume construction at this facility. Once operational, the Rochester Hub will play a vital role in converting black mass into battery-grade materials, further enhancing Li-Cycle’s position as a leader in the global battery recycling industry.
The DOE loan facility also impacts Li-Cycle’s financial arrangements with Glencore. Modifications to the terms of a convertible note issued to Glencore are set to take effect in December 2024, adjusting the note’s maturity date, interest rate, and conversion price. This will potentially increase Glencore’s ownership in Li-Cycle to approximately 66% on a fully diluted basis, reflecting the strengthened partnership between the two companies.
Strengthening the Spoke Business
Li-Cycle continues to enhance its Spoke recycling facilities, optimizing its processes to efficiently convert battery manufacturing scrap and end-of-life batteries into black mass. These facilities form the foundation of Li-Cycle’s recycling operations, supporting its innovative Spoke & Hub Technologies™ model.
About Li-Cycle Holdings Corp.
Li-Cycle is dedicated to creating a clean energy future through sustainable lithium-ion battery recycling. Founded in 2016, the company has established a global footprint with its innovative Spoke & Hub Technologies™, which enable efficient recovery of valuable battery materials. Li-Cycle serves a diverse range of customers, contributing to the development of a domestic closed-loop supply chain for lithium-ion batteries.
About Glencore International AG
Glencore is a global leader in the production, recycling, and marketing of commodities, including nickel and cobalt, which are essential for lithium-ion batteries. Its collaboration with Li-Cycle reinforces its commitment to sustainability and innovation in the battery materials sector.
By combining their expertise, Li-Cycle and Glencore aim to drive progress in battery recycling, ensuring the sustainable use of resources and contributing to a greener future.
