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May 6, 2022

Glencore to invest $200m in Canadian battery recycler Li-Cycle

The two firms will also collaborate to advance circularity in battery raw material supply chains.

Miner and commodity trader Glencore has made a $200m investment in Canada-based lithium-ion battery recycler Li-Cycle

The investment by the mining firm will be made by subscribing to convertible debt in Li-Cycle.

Furthermore, Glencore will collaborate with the battery recycler to advance circularity in battery supply chains for the electric vehicle (EV) industry.

Li-Cycle will become a preferred partner for Glencore in the lithium-ion battery recycling sector.

The former is focused on the secondary supply of critical battery metals by using its Spoke and Hub technologies, which are designed to provide an end-of-life solution for lithium-ion batteries.

The two firms also signed a global feedstock supply agreement, whereby the mining company will supply all forms of manufacturing scrap and end-of-life lithium-ion batteries to Li-Cycle.

Upon closing of the subscription, Glencore will be responsible for procuring feedstock for Li-Cycle’s Spoke facilities, as well as black mass for the Hub facilities.

Li-Cycle co-founder and CEO Ajay Kochhar said: “We are thrilled to have Glencore as a long-term strategic investor and global commercial partner. Bringing our complementary capabilities together will accelerate the path to a circular economy for critical materials in the lithium-ion battery supply chain.

“These agreements further secure and diversify our lithium-ion battery supply and feedstock sources, competitively positioning our network expansion in North America and Europe.”

The agreements also cover by-products offtake from Li-Cycle’s facilities while Glencore will supply the battery recycler’s sulfuric acid needs for its Hub facilities.

Glencore recycling head Kunal Sinha said: “Our bold aim is to help support the creation of a genuinely circular economy that supplies recycled materials and minerals back into the battery supply chain.

“We are united in our ambition to further the energy and mobility transition. Glencore’s industry-leading Net Zero total emissions reduction strategy is supported by key investments such as this, which is also expected to complement our existing investments and relationships with key partners in the battery and EV space.”

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