Li-Cycle announces $75 Million strategic investment from Glencore

Li-Cycle Holdings Corp., a leading global lithiumion battery resource recovery company, is pleased to announce that it has entered into an agreement (the “Note Purchase Agreement”) to issue a senior secured convertible note in an aggregate principal amount of $75 million (the “Note”) to an affiliate of Glencore plc, a leading producer, recycler, and marketer of nickel and cobalt for the production of lithiumion batteries.

Ajay Kochhar, Li-Cycle co-founder and CEO, commented: “We are pleased to secure an additional $75 million investment from Glencore, following Glencore’s June 2022 investment, to improve our liquidity position while we continue our ongoing comprehensive review process. This financing enhances Li-Cycle and Glencore’s existing long-term, strategic partnership and represents an interim step in our funding strategy to support Li-Cycle’s future plans. We also continue to work closely with the U.S. Department of Energy on the conditional commitment for a loan of up to $375 million.”

Tim Johnston, Li-Cycle co-founder and Executive Chairman, commented: “As part of our previously announced comprehensive review, Li-Cycle is continuing to review our global recycling network. We are also reviewing our go-forward strategy for the paused Rochester Hub, including analyzing potential end-product mix options and construction strategy. We believe the demand for critical battery materials continues to accelerate and Li-Cycle continues to work to position itself as a future leader in the production of critical battery materials through our sustainable, safe, and patented recycling technology.”

Kunal Sinha, Global Head of Recycling for Glencore, and Non-Executive Director of Li-Cycle’s Board of Directors, commented: “Glencore is committed to bringing scalable and sustainable circularity into the supply chain of battery materials. Our original investment in Li-Cycle, alongside key commercial agreements, formed part of this strategy. Today, we are pleased to further support Li-Cycle through this additional $75 million investment so both Li-Cycle and Glencore can continue to build the battery circularity platform of choice for our customers.”

Following the announcement by the Company in October 2023 in respect of the Rochester Hub, the Company formed a Special Committee (the “SC”) composed solely of independent and disinterested members of the Board (and which excluded Glencore’s Board representative). The SC engaged Moelis & Company LLC, a leading global investment bank (“Moelis”), as its financial advisor and placement agent. The SC, with the assistance of Moelis, conducted a robust process to review and evaluate potential financial and strategic alternatives available to the Company. After a careful review and assessment of the alternatives identified by the SC through this process, the Company entered into the agreement with Glencore.

Li-Cycle management expects to provide its full-year 2023 financial and operating results on or before March 15, 2024 as part of the filing of its Annual Report on Form 10-K for the year ended December 31, 2023.