Glencore in $75m ‘liquidity’ boost for Li-Cycle

Glencore in $75m ‘liquidity’ boost for Li-Cycle

Glencore in $75m ‘liquidity’ boost for Li-Cycle 1002 635 Energy Storage Journal

March 13, 2024: Troubled lithium recycling tech developer Li-Cycle said on March 12 an extra $75 million investment from mining group Glencore would boost its liquidity.

Pressure has been mounting on Li-Cycle after it suspended construction of its Rochester lithium battery recycling hub in New York last October.

The suspension came after Li-Cycle said the estimated cost could double to up to $1 billion.

Li-Cycle has since formed a special committee “composed solely of independent and disinterested members” of its board to work with investment bank,  Moelis & Company, on a review of the Rochester project and “to evaluate potential financial and strategic alternatives”, co-founder and CEO Ajay Kochhar revealed on March 12.

Glencore originally invested $200 million in Li-Cycle in 2022.

Kochhar said the latest Glencore investment represented an interim step in Li-Cycle’s funding strategy. “We also continue to work closely with the US Department of Energy (DOE) on the conditional commitment for a loan of up to $375 million.”

Key Republican members of the House of Representatives have called on the DOE’s Loan Programs Office to give details of the proposed loan — saying they were concerned about the government making possible “reckless investments”.

Separately, at least two law firms have announced the filing of class action lawsuits against Li-Cycle, relating to statements made by the firm about Rochester’s costs.

Meanwhile, Li-Cycle is expected to issue full year results on or before March 15.