Li-Cycle Receives Conditional Commitment for $375 Million Loan from the U.S. Department of Energy ATVM Program
-Helps Li-Cycle’s Rochester Hub, which is anticipated to be the primary supply of recycled battery-grade lithium in North America -First help from the DOE ATVM Program for a useful resource restoration facility and sustainable pure-play lithium-ion battery supplies recycling firm
Li-Cycle Holdings Corp. (NYSE: LICY) (“Li-Cycle” or the “Firm”), a pacesetter within the lithium-ion battery useful resource restoration trade and the main lithium-ion battery recycler in North America, is happy to announce that Li-Cycle and the US Division of Power (“DOE”) Mortgage Packages Workplace (“LPO”), by means of the Superior Know-how Automobiles Manufacturing (“ATVM”) program, have entered right into a conditional dedication for $375 million mortgage (the “Mortgage”).
The conditional dedication follows intensive DOE technical, market, monetary and authorized due diligence and marks one other vital milestone endorsing Li-Cycle’s improvement of the primary industrial hydrometallurgical useful resource restoration facility in North America, which positioned close to Rochester, New York (the “Rochester Hub”) . That is the primary conditional dedication from the DOE ATVM program for a sustainable pure-play battery supplies recycling firm and this system’s main help for the battery recycling trade in lithium-ion.
The Rochester Hub is anticipated to be a significant home supply of battery-grade supplies, together with lithium, nickel and cobalt, and would be the first industrial facility in North America. Acceptance of the conditional dedication is a key step within the lending course of and signifies DOE’s intent to finance the venture; nevertheless, the Mortgage stays topic to the documentation of long-form agreements and sure situations should be happy previous to closing, which is at the moment anticipated to happen in calendar Q2 2023. The Mortgage has a time period of in 12 years from monetary closing, and the curiosity on the Mortgage is the 10-year US Treasury Charges from the date of every advance for the Mortgage.
“We’re happy to obtain the primary conditional dedication from the DOE LPO for a useful resource restoration facility, because it additional helps our efforts to create a sustainable home provide chain of battery-grade supplies in US and to enhance American jobs,” stated Ajay Kochhar, Li-Cycle Co-Founder, President and Chief Government Officer. “The Rochester Hub is a foundational asset for Li-Cycle and its stakeholders and will likely be an essential contributor to the clear vitality financial system. main home producer of recycled battery-grade supplies for accelerating demand of electrification to deal with local weather change and guarantee vitality independence.”
“We want to thank the DOE LPO crew for his or her time, help and cooperation throughout this course of, and we look ahead to our joint efforts to finish the ultimate agreements,” commented Debbie Simpson, Li-Cycle Chief Monetary Officer. “This strategic financing meets our dedication to implement extra debt financing alternatives that finest optimize our capital construction. The potential of this massive quantity of presidency funding on favorable phrases enhances our already sturdy stability sheet and offers flexibility for continued growth and future development plans.”
“In the present day’s $375 million will supercharge Li-Cycle right here in Rochester, with 270 well-paying jobs, to turn into considered one of America’s largest suppliers of recycled supplies for batteries. supply of federal funding to stimulate additional improvement, and now due to the investments I secured within the Inflation Discount Act, Rochester will assist drive America’s energy to steer battery know-how,” stated Senator Charles Schumer. “This DOE funding in Li-Cycle will cut back our dependence on China and strengthen America’s battery provide chain. And as soon as the ability is at full steam, it’s anticipated to be the biggest supply of lithium carbonate in the USA. Which means the center of a whole bunch of hundreds of electrical automobiles, which can quickly dominate our roads, will likely be made with battery elements from proper right here in Rochester.
“I’m happy that the Division of Power has acknowledged the nice potential of Li-Cycle’s Rochester Hub and is selecting to take a position not solely in them, however in the way forward for our clear vitality financial system,” stated Congressman Joseph Morelle. “Li-Cycle is main the best way in cutting-edge know-how that strengthens our home provide chain whereas making a extra sustainable planet for all of us. I look ahead to my continued work with Li-Cycle, Senator Schumer, and all of our companions to help their development and growth within the coming years.”
Livestream hyperlink for right now’s Particular Occasion at 11 am ET
A livestream hyperlink for the particular occasion at Li-Cycle’s Rochester Hub facility is on the market on YouTube right here and out there on LinkedIn right here. Temporary statements will likely be made by US Senate Majority Chief Charles E. Schumer, Congressman Joseph Morelle, state officers, and members of Li-Cycle management, together with co-founder and CEO of Li-Cycle, Ajay Kochhar.
US Spoke & Hub Community
Li-Cycle’s Spoke & Hub enterprise mannequin is concentrated on a brand new vertically-integrated two-step lithium-ion battery recycling and useful resource restoration course of. It helps the institution of native provide chains for battery-grade supplies to facilitate the transition to scrub vitality. The Firm continues to scale its Spoke & Hub community to attain as much as an total 95% recycling effectivity price. Li-Cycle’s Spoke & Hub Applied sciences™ allow the return of battery supplies again into the home provide chain for reuse by battery producers and electrical automobile and vitality producers for a round financial system.
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Spokes makes use of the Firm’s patented and environmentally pleasant know-how to recycle end-of-life battery supplies and manufacturing scrap, together with direct processing of whole electrical automobile and battery packs in vitality storage by means of a shredding course of with none unloading or dismantling.
Presently, Li-Cycle has 4 operational Spokes in North America with a complete processing capability of greater than 50,000 tons of lithium-ion battery materials per 12 months. Spokes produces an intermediate product referred to as black mass, which comprises extra important metals and is distributed to the Rochester Hub for additional processing into battery-grade supplies.
Rochester Hub
The Rochester Hub is anticipated to be the primary industrial hydrometallurgical useful resource restoration facility in North America. The hydrometallurgical course of on the Rochester Hub produces no wastewater discharges, minimal strong waste streams and comparatively low air emissions.
The Rochester Hub is designed to have a processing capability of as much as 35,000 tons of black mass per 12 months, which is equal to roughly 90,000 tons of lithium-ion battery materials or 18 gigawatt-hours (GWh) of batteries in lithium-ion. As soon as totally operational, the Rochester Hub is anticipated to offer annual manufacturing of as much as 8,500 tonnes of lithium carbonate, 48,000 tonnes of nickel sulfate, and seven,500 tonnes of cobalt sulphate.
The Rochester Hub facility and its warehouse are strategically positioned on greater than 65 acres of land within the Eastman Enterprise Park in Rochester, New York, to make the most of current infrastructure for energy and transportation, in addition to a proficient native workforce. . The Rochester Hub is anticipated to create roughly 270 new everlasting jobs and greater than 1,000 jobs throughout building.
Li-Cycle continues to fulfill improvement milestones on the Rochester Hub and is anticipated to start commissioning in late calendar 2023. Throughout 2022, Li-Cycle acquired key environmental permits for the Rochester Hub, in addition to superior detailed engineering and building with main organizations together with Hatch Ltd., a world engineering agency, and MasTec Inc., a North American-based building firm.
Rochester Hub video
Li-Cycle just lately posted a brand new video in regards to the improvement of the Rochester Hub, out there right here.
Transaction Advisors
Centerview Companions is serving as monetary advisor to Li-Cycle, and Freshfields Bruckhaus Deringer US LLP is serving as authorized advisor in New York to Li-Cycle.
About Li-Cycle Holdings Corp.
Li-Cycle (NYSE: LICY) is on a mission to leverage its new Spoke & Hub Applied sciences™ to offer a customer-centric, end-of-life answer for lithium-ion batteries, whereas creates a secondary provide of battery-grade supplies. . Lithium-ion rechargeable batteries are more and more powering our world in automotive, vitality storage, client electronics, and different industrial and family purposes. The world wants improved know-how and provide chain improvements to higher handle battery manufacturing waste and end-of-life batteries, and to fulfill the quickly rising demand for important and scarce of battery-grade uncooked supplies by means of a closed-loop answer. For extra info, go to https://li-cycle.com/.
