Li-Cycle Receives $375 Million from the U.S. DOE for New York Recycling Plant
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Supports Li-Cycle’s Rochester Hub, which is expected to be the first source of recycled battery-grade lithium in North America
First support from DOE ATVM Program for a resource recovery facility and sustainable pure-play lithium-ion battery materials recycling company
Validates Li-Cycle’s sustainable Spoke & Hub Technologies and industry-leading position as a U.S. domestic supplier of recycled battery-grade materials to accelerate the electrification transition
Strengthens robust balance sheet and enhances financial flexibility for future network expansion
Special event (livestream) today at 11 a.m. ET at Li-Cycle’s Rochester Hub facility, with U.S. Senate Majority Leader Charles E. Schumer, Congressman Joseph Morelle, and state officials
Li-Cycle Holdings Corp., an industry leader in lithium-ion battery resource recovery and the leading lithium-ion battery recycler in North America, is pleased to announce that Li-Cycle and the U.S. Department of Energy Loan Programs Office, through its Advanced Technology Vehicles Manufacturing program, have entered into a conditional commitment for a $375 million loan.
The conditional commitment follows extensive DOE technical, market, financial and legal due diligence and marks another significant milestone endorsing Li-Cycle’s development of the first commercial hydrometallurgical resource recovery facility in North America, located near Rochester, New York. This is the first conditional commitment from the DOE ATVM program for a sustainable pure-play battery materials recycling company and the program’s main support for the lithium-ion battery recycling industry.
The Rochester Hub is expected to become a significant domestic source of battery-grade materials, including lithium, nickel and cobalt, and will be the first-of-its-kind commercial facility in North America. Receiving the conditional commitment is a significant step in the lending process and reflects the DOE’s intent to finance the project; however, the Loan remains subject to documentation of long-form agreements and certain conditions will have to be satisfied prior to closing, which is currently expected to occur in calendar Q2 2023. The Loan will have a term of up to 12 years from financial close, and interest on the Loan will be the 10-year U.S. Treasury Rates from the date of each advance for the Loan.
“We are delighted to receive the first conditional commitment from the DOE LPO for a resource recovery facility, as it further supports our efforts to create a sustainable domestic supply chain of battery-grade materials in the U.S. and to grow American jobs,” said Ajay Kochhar, Li-Cycle Co-Founder, President and Chief Executive Officer. “The Rochester Hub is a cornerstone asset for Li-Cycle and its stakeholders and will be an important contributor to the clean energy economy. As a sustainable pure-play battery material recycling company, we expect the Rochester Hub will position Li-Cycle as a leading domestic producer of recycled battery-grade materials for accelerating electrification demand to address climate change and secure energy independence.”
“We would like to thank the DOE LPO team for their time, support and partnership during this process, and we look forward to our collective efforts to complete the final agreements,” commented Debbie Simpson, Li-Cycle Chief Financial Officer. “This strategic financing achieves our commitment to execute on additional funding opportunities with debt that best optimizes our capital structure. The possibility of this substantial amount of government funding at favorable terms enhances our already robust balance sheet and provides flexibility for continued expansion and future growth plans.”
“$375 million will now supercharge Li-Cycle here in Rochester, with 270 good-paying jobs, to become one of America’s largest suppliers of recycled materials for batteries. Last year, I stood alongside Li-Cycle’s powerhouse workforce and promised I would push to deliver federal funding to spark more growth, and now thanks to the investments I secured in the Inflation Reduction Act, Rochester will help power America’s drive to lead in battery technology,” said Senator Charles Schumer. “This DOE investment in Li-Cycle will reduce our reliance on China and strengthen America’s battery supply chain. And once the facility is at full steam, it is projected to be the biggest source of lithium carbonate in the United States. That means the heart of hundreds of thousands of electric vehicles, which will soon dominate our roads, will be made with battery components from right here in Rochester.”
“I am thrilled the Department of Energy has recognized the enormous potential of Li-Cycle’s Rochester Hub and is choosing to invest not just in them, but in the future of our clean energy economy,” said Congressman Joseph Morelle. “Li-Cycle is leading the way in cutting-edge technology that is strengthening our domestic supply chains while creating a more sustainable planet for all of us. I look forward to my continued work with Li-Cycle, Senator Schumer, and all of our partners to support their growth and expansion for years to come.”