Li-Cycle Further Expands Commercial Footprint in EU with Additional Exclusive Recycling Partnership for its Germany Spoke

Rhea-AI Summary

Li-Cycle Holdings Corp. (NYSE: LICY) has announced an exclusive recycling partnership with a leading global electric vehicle manufacturer for its Germany Spoke facility. The agreement will provide additional feedstock from an EU-based electric vehicle production facility, expanding Li-Cycle's commercial presence in the European Union.

The partnership represents another collaboration with a major global EV OEM, validating Li-Cycle's recycling technology and service quality. The agreement aims to support the company's objective of providing a local and sustainable secondary supply of critical battery materials while contributing to the development of a profitable Spoke network.

Positive

• Secured exclusive recycling agreement with major global EV manufacturer
• Expanded commercial footprint in EU market
• Gained additional guaranteed feedstock source for Germany Spoke facility

Negative

• None.

Insights

Market Research Analyst

This exclusive recycling partnership represents a strategic milestone for Li-Cycle's European expansion, particularly significant given the EU's aggressive push toward battery supply chain independence and sustainability. The agreement with another premium automotive OEM delivers three critical advantages:

1. Secured Feedstock Supply Chain: By establishing exclusive partnerships with major EV manufacturers, Li-Cycle is effectively locking in guaranteed feedstock volumes for its Germany Spoke facility. This helps ensure operational stability and predictable capacity utilization, which is important for maintaining profitable operations in capital-intensive recycling facilities.

2. Market Position Strengthening: The partnership with another premium automotive manufacturer validates Li-Cycle's technology and service quality. This is particularly valuable in the EU market, where stringent regulations and high quality standards create significant barriers to entry for recycling operators.

3. Strategic Alignment with EU Regulations: The EU's Battery Regulation mandates specific recycling efficiency rates and local processing of battery materials. This partnership positions Li-Cycle to capitalize on these regulatory requirements, as automotive manufacturers increasingly seek compliant recycling solutions.

However, investors should note that while this partnership strengthens Li-Cycle's market position, the company still faces challenges including operational execution, scaling economics and competitive pressures in the rapidly evolving battery recycling market. The financial impact will largely depend on the actual volumes processed and the company's ability to optimize operational costs while maintaining high recovery rates.

Exclusive recycling agreement with an additional leading, global electric vehicle manufacturer provides further feedstock from another EU country for the Company’s Germany Spoke

TORONTO--(BUSINESS WIRE)-- Li-Cycle Holdings Corp. (NYSE: LICY) (“Li-Cycle” or the “Company”), a leading global lithium-ion battery resource recovery company, is pleased to announce it has partnered with an additional premium automotive original equipment manufacturer (“OEM”) to recycle lithium-ion battery materials at its Germany Spoke as it continues to broaden its commercial footprint in the EU.

This exclusive agreement channels feedstock from a facility producing electric vehicles within the EU to Li-Cycle’s Germany Spoke. This signifies yet another partnership with a prominent global electric vehicle (EV) OEM, further showcasing the Company’s valuable recycling technology and high-quality service.

“We are delighted to recycle lithium-ion batteries and manufacturing scrap sourced from across the EU as we work to expand our commercial reach and enhance value for our global EV OEM partners,” said Ajay Kochhar, Li-Cycle President and CEO. “This partnership with a leading, premium EV manufacturer will serve as a vital source of recycling feedstock for our Germany Spoke, aiding our objective of offering a local and sustainable secondary supply of critical battery materials. We are excited to maintain our commitment to delivering high-quality services and products to our global partners as we develop a financially beneficial Spoke network.”

About Li-Cycle Holdings Corp.

Li-Cycle (NYSE: LICY) is a leading global lithium-ion battery resource recovery company. Established in 2016, and with major customers and partners around the world, Li-Cycle’s mission is to recover critical battery-grade materials to create a domestic closed-loop battery supply chain for a clean energy future. The Company leverages its innovative, sustainable and patent-protected Spoke & Hub Technologies™ to recycle all different types of lithium-ion batteries. 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 future Hubs, or post-processing facilities, we plan to process black mass to produce critical battery-grade materials, including lithium carbonate, for the lithium-ion battery supply chain. 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 U.S. Private Securities Litigation Reform Act of 1995, Section 27A of the U.S. Securities Act of 1933, as amended, Section 21 of the U.S. Securities Exchange Act of 1934, as amended, and applicable Canadian securities laws. Forward-looking statements may generally be identified by the use of words such as “believe”, “may”, “will”, “continue”, “expect”, “should”, “plan”, “potential”, “future”, or other similar expressions that predict or indicate future events or trends or that are not statements of historical matters, although not all forward-looking statements contain such identifying words. Forward-looking statements in this press release include, but are not limited to, statements that the Company’s exclusive agreement with a premium automotive OEM will continue to broaden its commercial footprint in the EU, provide another important source of recycling feedstock for our Germany Spoke, support our goal of providing a local and sustainable secondary source of critical battery materials; and that Li-Cycle will develop financially beneficial Spoke network.

These statements are based on various assumptions, whether or not identified in this press release, including but not limited to assumptions regarding Li-Cycle’s ability to satisfy the drawdown conditions and access funding under a loan facility with the U.S. Department of Energy (the “DOE Loan Facility”); the timing, scope and cost of Li-Cycle’s projects, including paused projects; the processing capacity and production of Li-Cycle’s facilities; Li-Cycle’s ability to source feedstock and manage supply chain risk; Li-Cycle’s ability to increase recycling capacity and efficiency; Li-Cycle’s ability to obtain financing on acceptable terms or at all; the success of Li-Cycle’s cash preservation plan; the outcome of the go-forward strategy of Li-Cycle’s Rochester Hub; Li-Cycle’s ability to retain and hire key personnel and maintain relationships with customers, suppliers and other business partners. There can be no assurance that such estimates or assumptions will prove to be correct and, as a result, actual results or events may differ materially from expectations expressed in or implied by the forward-looking statements.

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 fund the anticipated costs of, and realize the anticipated benefits from, its Spoke optimization plan; Li-Cycle’s inability to satisfy the drawdown conditions and access funding under the DOE Loan Facility; Li-Cycle’s inability to develop the Rochester Hub as anticipated or at all, 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; risk and uncertainties related to Li-Cycle’s ability to continue as a going concern; Li-Cycle’s insurance may not cover all liabilities and damages; Li-Cycle’s reliance on a limited number of commercial partners to generate revenue; Li-Cycle’s failure to effectively remediate the material weaknesses in its internal control over financial reporting that it has identified or its failure to develop and maintain a proper and effective internal control over financial reporting; and risks of litigation or regulatory proceedings that could materially and adversely impact Li-Cycle’s financial results. These and other risks and uncertainties related to Li-Cycle’s business are described in greater detail in the sections titled “Item 1A. Risk Factors” and “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operation—Key Factors Affecting Li-Cycle’s Performance” in its Annual Report on Form 10-K and the sections titled “Part II. Other Information—Item 1A. Risk Factors” and “Part I. Financial Information—Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operation—Key Factors Affecting Li-Cycle’s Performance” in its Quarterly Reports on Form 10-Q, in each case filed with the SEC and the Ontario Securities Commission in Canada. Because of these risks, uncertainties and assumptions, readers should not place undue reliance on these forward-looking statements. Actual results could differ materially from those contained in any forward-looking statement.

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/20250203263560/en/

Investor Relations & Media

Louie Diaz

Sheldon D'souza

Investor Relations: investors@li-cycle.com

Media: media@li-cycle.com

Source: Li-Cycle Holdings Corp.

FAQ

What is the new partnership announced by Li-Cycle (LICY) for its Germany Spoke facility?

Li-Cycle announced an exclusive recycling agreement with a leading global electric vehicle manufacturer to process lithium-ion battery materials at its Germany Spoke facility.

How will the new partnership benefit Li-Cycle's (LICY) Germany operations?

The partnership will provide additional feedstock from an EU-based EV production facility, supporting Li-Cycle's objective of offering local and sustainable secondary supply of critical battery materials.

What is the strategic importance of Li-Cycle's (LICY) new EU recycling agreement?

The agreement expands Li-Cycle's commercial footprint in the EU, validates their recycling technology, and contributes to developing a profitable Spoke network while securing a guaranteed feedstock source.

How many major EV manufacturers does Li-Cycle (LICY) now partner with in Europe?

While the exact number isn't specified in the press release, this agreement represents an additional partnership with a global EV OEM, indicating multiple partnerships in Europe.