Li-Cycle and Glencore Accelerate Operational Plans for European Recycling Hub
- Phase 1 expected to start operations in the first half of 2024, accelerating the recovery of lithium carbonate and strengthening Li-Cycle’s first-mover advantage in Europe.
- Phase 2 facility to have 50,000 to 70,000 tonnes of black mass processing capacity and produce up to 16,500 tonnes of lithium carbonate.
- None.
Two-phase approach to the Portovesme Hub project in
Phase 1 designed to process up to 11,000 tonnes of black mass annually, in advance of the full-scale Phase 2 project, planned for 50,000 to 70,000 tonnes of expected annual processing capacity
The capital efficient project further strengthens Li-Cycle’s first mover advantage in
Portovesme Hub will support EU target of recycling at least
Phase 1 is designed to process up to 11,000 tonnes of black mass annually and, subject to receipt of all final regulatory approvals and definitive agreements, is expected to start operations in the first half of 2024, accelerating the recovery of lithium carbonate and strengthening Li-Cycle’s first-mover advantage in
The previously announced Portovesme Hub project plan (now “Phase 2”) remains the same. The Company expects the Phase 2 facility to have 50,000 to 70,000 tonnes of black mass processing capacity, and to produce up to 16,500 tonnes of lithium carbonate, as well as up to 18,000 tonnes of contained nickel and 2,250 tonnes of contained cobalt per year. Phase 2 is expected to be the final long-term plan and capacity for the facility. The Portovesme Hub is being designed to be able to process all forms of lithium-ion based black mass, including lithium iron phosphate (LFP) materials.
“We are excited to accelerate our plans with Glencore to establish clean, post-processing refining capacity for recycled lithium-ion batteries in Europe,” said Tim Johnston, Li-Cycle’s Executive Chair and co-founder. “Phase 1 of the Portovesme Hub is expected to come online at unprecedented speed and to expedite the pathway to create the largest source of sustainable recycled battery-grade products on the continent to support a circular lithium-ion battery supply chain. Li-Cycle continues to strengthen its first mover advantage in
“The development of the Hub with Li-Cycle at Glencore’s Portovesme site is progressing well, underpinned by strong endorsement from multiple internal and external stakeholders,” said Kunal Sinha, Global Head of Recycling for Glencore. “The project, combined with our existing footprint in the primary supply, as well as recycling of battery metals, is a core tenet of our ambition to become the circularity partner of choice with Li-Cycle for the European battery and EV industry. Specifically, this multi-phase approach to the development of the Hub allows us to start to close the loop for battery materials in
The black mass processed at Phase 1 and Phase 2 is expected to be supplied from Li-Cycle’s European Spoke recycling network and Glencore’s commercial network. This strategic collaboration aims to support the creation of a local, closed-loop battery supply chain. Notably, Li-Cycle has recently commenced operations at its first European Spoke in
Phase 1 and Phase 2 will utilize existing infrastructure and equipment at Glencore’s existing Portovesme metallurgical complex and leverage Li-Cycle’s innovative hydrometallurgical process to produce critical battery materials, including nickel, cobalt and lithium, from recycled battery content. By leveraging the existing Portovesme facility, development plans are expected to be expedited with lower capital costs.
Li-Cycle and Glencore anticipate forming a 50/50 joint venture for the Portovesme Hub, which also contemplates competitive long-term financing from Glencore to fund Li-Cycle’s share of the capital investment. For Phase 1, Li-Cycle will provide technical expertise and oversight, with Portovesme and other technical and operational experts from the wider Glencore group directing the build and operation. The Definitive Feasibility Study for Phase 2 is progressing well and is scheduled to be completed by mid-2024. Subject to a final investment decision and receipt of all necessary regulatory approvals, the full-scale Phase 2 Portovesme Hub is expected to advance to construction and begin commissioning in late 2026 to early 2027.
About Li-Cycle Holdings Corp.
Li-Cycle (NYSE: LICY) is a leading global lithium-ion battery resource recovery company and North America’s largest pure-play lithium-ion battery recycler, with a rapidly growing presence across
Our Spoke & Hub Technologies™ are based on a hydrometallurgical process that provides an environmentally friendly and cost-effective alternative to pyrometallurgical processing and traditional mining methods. At our Spokes, or pre-processing facilities, we recycle battery manufacturing scrap and end-of-life batteries to produce black mass, a powder-like substance which contains a number of valuable metals, including lithium, nickel, and cobalt. At our Hubs, or post-processing facilities, we will process black mass to produce critical battery-grade materials, including lithium carbonate, nickel sulphate, and cobalt sulphate. For more information, visit https://li-cycle.com/
Forward-Looking Statements
Certain statements contained in this press release may be considered “forward-looking statements” within the meaning of the
These forward-looking statements are provided for the purpose of assisting readers in understanding certain key elements of Li-Cycle’s current objectives, goals, targets, strategic priorities, expectations and plans, and in obtaining a better understanding of Li-Cycle’s business and anticipated operating environment. Readers are cautioned that such information may not be appropriate for other purposes and is not intended to serve as, and must not be relied on, by any investor as a guarantee, an assurance, a prediction or a definitive statement of fact or probability.
Forward-looking statements involve inherent risks and uncertainties, most of which are difficult to predict and many of which are beyond the control of Li-Cycle, and are not guarantees of future performance. Li-Cycle believes that these risks and uncertainties include, but are not limited to, the following: Li-Cycle’s inability to economically and efficiently source, recover and recycle lithium-ion batteries and lithium-ion battery manufacturing scrap, as well as third party black mass, and to meet the market demand for an environmentally sound, closed-loop solution for manufacturing waste and end-of-life lithium-ion batteries; Li-Cycle’s inability to successfully implement its global growth strategy, on a timely basis or at all; Li-Cycle’s inability to manage future global growth effectively; Li-Cycle’s inability to develop the Rochester Hub, and other future projects including its Spoke network expansion projects in a timely manner or on budget or that those projects will not meet expectations with respect to their productivity or the specifications of their end products; Li-Cycle’s failure to materially increase recycling capacity and efficiency; Li-Cycle may engage in strategic transactions, including acquisitions, that could disrupt its business, cause dilution to its shareholders, reduce its financial resources, result in incurrence of debt, or prove not to be successful; one or more of Li-Cycle’s current or future facilities becoming inoperative, capacity constrained or if its operations are disrupted; additional funds required to meet Li-Cycle’s capital requirements in the future not being available to Li-Cycle on acceptable terms or at all when it needs them; Li-Cycle expects to continue to incur significant expenses and may not achieve or sustain profitability; problems with the handling of lithium-ion battery cells that result in less usage of lithium-ion batteries or affect Li-Cycle’s operations; Li-Cycle’s inability to maintain and increase feedstock supply commitments as well as securing new customers and off-take agreements; a decline in the adoption rate of EVs, or a decline in the support by governments for “green” energy technologies; decreases in benchmark prices for the metals contained in Li-Cycle’s products; changes in the volume or composition of feedstock materials processed at Li-Cycle’s facilities; the development of an alternative chemical make-up of lithium-ion batteries or battery alternatives; Li-Cycle’s revenues for the Rochester Hub are derived significantly from a single customer; Li-Cycle’s insurance may not cover all liabilities and damages; Li-Cycle’s heavy reliance on the experience and expertise of its management; Li-Cycle’s reliance on third-party consultants for its regulatory compliance; Li-Cycle’s inability to complete its recycling processes as quickly as customers may require; Li-Cycle’s inability to compete successfully; increases in income tax rates, changes in income tax laws or disagreements with tax authorities; significant variance in Li-Cycle’s operating and financial results from period to period due to fluctuations in its operating costs and other factors; fluctuations in foreign currency exchange rates which could result in declines in reported sales and net earnings; unfavorable economic conditions, such as consequences of the global COVID-19 pandemic; natural disasters, unusually adverse weather, epidemic or pandemic outbreaks, cyber incidents, boycotts and geo-political events; failure to protect or enforce Li-Cycle’s intellectual property; Li-Cycle may be subject to intellectual property rights claims by third parties; Li-Cycle’s failure to effectively remediate the material weaknesses in its internal control over financial reporting that it has identified or if it fails to develop and maintain a proper and effective internal control over financial reporting. These and other risks and uncertainties related to Li-Cycle’s business are described in greater detail in the section entitled “Risk Factors” and “Key Factors Affecting Li-Cycle’s Performance” in its Annual Report on Form 20-F filed with the
Li-Cycle assumes no obligation to update or revise any forward-looking statements, except as required by applicable laws. These forward-looking statements should not be relied upon as representing Li-Cycle’s assessments as of any date subsequent to the date of this press release.
View source version on businesswire.com: https://www.businesswire.com/news/home/20230918660608/en/
Investor Relations
Nahla A. Azmy
Sheldon D’souza
investors@li-cycle.com
Media
Louie Diaz
media@li-cycle.com
Source: Li-Cycle Holdings Corp.