Li-Cycle Partners with High-Performance, Luxury Electric Vehicle (EV) Manufacturer for Exclusive Recycling Agreement in Germany

Rhea-AI Summary

Li-Cycle Holdings Corp. (NYSE: LICY) has secured an exclusive recycling agreement with a luxury electric vehicle manufacturer in Germany. The partnership focuses on recycling lithium-ion battery manufacturing scrap at Li-Cycle's Germany Spoke facility, with feedstock sourced within Germany.

Throughout 2024, Li-Cycle has provided recycling services to approximately 13 EV OEMs and 15 battery cell and material producers. The company's largest feedstock source during 2024 was a U.S.-headquartered, vertically integrated EV and battery manufacturer with significant global market share.

Positive

• Secured exclusive recycling agreement with luxury EV manufacturer in Germany
• Established relationships with 13 EV OEMs and 15 battery producers in 2024
• Partnership with major U.S. EV manufacturer as largest feedstock source

Negative

• None.

Insights

Battery Industry Analyst

This exclusive recycling agreement marks a pivotal development for Li-Cycle's European strategy and operational sustainability. The partnership with a luxury German OEM provides three important advantages:

1. Steady Feedstock Supply: Manufacturing scrap offers a more predictable, higher-quality feedstock stream compared to end-of-life batteries, potentially improving operational efficiency and reducing processing costs. The regular supply from a premium manufacturer suggests substantial volume potential, though specific quantities remain undisclosed.

2. Market Position Strengthening: The agreement adds to Li-Cycle's impressive partner portfolio, which already includes about 13 EV OEMs and 15 battery producers. This high-profile addition in Germany - Europe's largest automotive market - could catalyze further partnerships in the region.

3. Financial Implications: The focus on 'financially accretive' Spoke operations suggests this agreement aligns with Li-Cycle's path to profitability. Manufacturing scrap typically requires less preprocessing than end-of-life batteries, potentially offering better margins.

However, key considerations include the recent operational challenges and financial pressures facing Li-Cycle, including the paused construction of their Rochester Hub. While this agreement demonstrates continued commercial progress, investors should monitor the execution and actual revenue impact, particularly given the company's need to demonstrate sustainable operations.

Agreement focuses on the supply of lithium-ion battery manufacturing scrap to Li-Cycle’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 partner with a major auto original equipment manufacturer (“OEM”) to recycle lithium-ion battery manufacturing scrap at its Germany Spoke.

This exclusive agreement is with a high-performance, luxury vehicle OEM and is focused on supplying Li-Cycle’s Germany Spoke with feedstock originating from within Germany.

“We are excited to continue strengthening our partnerships with leading global EV OEMs,” said Ajay Kochhar, Li-Cycle President and CEO. “This exclusive recycling agreement secures a further quality supply of recycling feedstock for our Germany Spoke. This is also indicative of our position as a preferred recycling partner who can process lithium-ion battery materials sustainably and efficiently. As we advance our work on establishing a financially accretive Spoke business, we will continue to provide top-tier service and support for our key partners and customers.”

Throughout 2024, Li-Cycle supported approximately 13 prominent EV OEMs and approximately 15 key battery cell and material producers with the Company’s sustainable recycling services. During 2024, the largest source of the Company’s global battery feedstock was a U.S.-headquartered, vertically integrated EV and battery manufacturer with substantial global EV market share.

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 high-performance, luxury OEM will secure a quality supply of recycling feedstock for our Germany Spoke; that Li-Cycle will process lithium-ion battery materials sustainably and efficiently and provide top-tier service and support for our key partners and customers; and that Li-Cycle will establish a financially accretive Spoke business.

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/20250130122277/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 recycling agreement between Li-Cycle (LICY) and the German luxury EV manufacturer?

Li-Cycle has secured an exclusive agreement to recycle lithium-ion battery manufacturing scrap from a luxury EV manufacturer at its Germany Spoke facility, with feedstock sourced within Germany.

How many EV manufacturers did Li-Cycle (LICY) partner with in 2024?

In 2024, Li-Cycle provided recycling services to approximately 13 EV OEMs and 15 key battery cell and material producers.

Who is Li-Cycle's (LICY) largest battery feedstock source in 2024?

Li-Cycle's largest feedstock source in 2024 was a U.S.-headquartered, vertically integrated EV and battery manufacturer with substantial global market share.

What is the purpose of Li-Cycle's (LICY) Germany Spoke facility?

Li-Cycle's Germany Spoke facility processes lithium-ion battery manufacturing scrap through sustainable recycling services for various automotive and battery manufacturing partners.