Li-Cycle weighs acquisition by Glencore

Market: Battery materials, Metals
01/04/25

Canadian battery recycler Li-Cycle said it is considering a sale to mining and trading firm Glencore as it continues to face the risk it will run out of cash.

Li-Cycle is evaluating a 14 March letter from Glencore expressing an interest in acquiring the company, Li-Cycle said Monday. Glencore has previously invested in Li-Cycle.

"Without additional financing in the near term, we will not have adequate liquidity during the 12 months following December 31, 2024, casting substantial doubt about our ability to continue as a going concern," Li-Cycle said Monday in its annual report.

The company has issued similar warnings since 2023.

The New York Stock Exchange earlier this year suspended trading of the company's common shares and initiated the process of de-listing them.

Li-Cycle in October 2023 paused construction of its first commercial-scale hub in Rochester, New York. Development of its New York spoke and Norway spoke has also been paused. The company operates a spoke-and-hub network, in which batteries are shredded at spoke facilities before being further processed and recycled at a hub.

The pause in Rochester hub construction will prevent Li-Cycle from drawing down a loan of as much as $475mn from the Department of Energy, as completing the project is a requirement for advancing the loan.

Li-Cycle reported a net loss of $137.7mn in 2024, little changed from 2023, as revenue rose to $28mn from $18.3mn. Cash and cash equivalents decreased by $48.4mn to end 2024 at $31.9mn.

By Carol Luk

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