• Li-Cycle closes a $475 million loan from the U.S. Department of Energy (DOE) to support its Rochester Hub project, just ahead of Donald Trump’s return to the presidency, raising concerns about future climate finance.
• This loan is the first DOE facility for a battery recycling company and underscores Li-Cycle’s pivotal role in North America’s sustainable battery supply chain.
• The Rochester Hub is expected to produce 8,250 tonnes of lithium carbonate and 72,000 tonnes of mixed hydroxide precipitate annually, reinforcing U.S. energy independence and job creation.

Li-Cycle Holdings Corp. has secured a major $475 million loan from the U.S. Department of Energy (DOE) to fund the development of its Rochester Hub project in upstate New York. The announcement comes at a critical juncture as Donald Trump prepares to step into office, amid widespread speculation about potential rollbacks on climate initiatives like the Inflation Reduction Act (IRA).

Ajay Kochhar, Li-Cycle President and CEO, emphasized the strategic importance of this funding: “Throughout 2024, one of Li-Cycle’s primary objectives has been to finalize negotiations with the DOE in order to enter into definitive documentation to obtain a DOE loan. Today, we are excited to announce our achievement of this significant milestone, which we believe represents a strong vote of confidence in Li-Cycle’s patented and environmentally friendly recycling technology and business model.”

Key Deal Details:

• The $475 million facility includes $445 million in principal and up to $30 million in capitalized interest, marking a $100 million increase over the initial announcement.
• It’s the first DOE loan for a lithium-ion battery recycling project, showcasing confidence in Li-Cycle’s Spoke & Hub Technologies™.

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Significance for the U.S. Supply Chain:

The Rochester Hub is set to be the first commercial hydrometallurgical facility in North America, recycling critical battery materials. With full operation, it will produce up to 8,250 tonnes of lithium carbonate and 72,000 tonnes of mixed hydroxide precipitate annually. This supports President Biden’s vision for a sustainable domestic EV supply chain, a vision now facing uncertainty as Trump takes office.

Kochhar added, “Securing the DOE Loan Facility through our close collaboration with the DOE is a critical step toward our goal of restarting construction at the Rochester Hub project. We believe that the DOE Loan Facility offers attractive terms relative to other third-party financing alternatives available to us.”

The Rochester Hub project, costing approximately $960 million through mechanical completion, is expected to create 825 construction jobs at peak and over 200 permanent positions.

This landmark agreement underscores the urgency of advancing climate finance initiatives before potential policy shifts that could affect future green investments.

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