The two firms have also forged a partnership with an objective to advance circularity in battery raw material supply chains
Li-Cycle, a Canada-based lithium-ion battery recycler, has secured an investment of $200m from natural resource firm Glencore.
The investment by Glencore is expected to improve Li-Cycle’s balance sheet.
The two firms have also entered into a partnership with an aim to advance circularity in battery raw material supply chains.
Li-Cycle will become Glencore’s preferred partner in the lithium-ion battery recycling sector. The former is focused on the secondary supply of critical battery metals by utilitising its Spoke and Hub technologies.
Currently, the Canadian company is completing its Rochester Hub in the US to recover non-renewable battery metals from black mass concentrate. The company is also developing five Spokes for processing battery manufacturing scrap and battery materials.
The parties have signed a global feedstock supply agreement under which the Switzerland-based natural resource company will supply all forms of manufacturing scrap and end-of-life lithium-ion batteries to Li-Cycle.
Glencore’s investment in the lithium-ion battery recycler will be made by subscribing to convertible debt in Li-Cycle.
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.”
Upon closing of the subscription, Glencore will procure feedstock for Li-Cycle’s Spoke facilities and black mass for the latter’s Hub facilities.
The agreements between the firms include offtake of black mass from Li-Cycle’s Spoke facilities and offtake of battery usable end products produced by the Canadian firm.
Besides, the agreements cover offtake of by-products from Li-Cycle’s facilities and Glencore supplying 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.”