Glencore and Li-Cycle announce innovative partnership to advance circularity in battery raw material supply chains
5 May 2022
Glencore is pleased to announce the establishment of a strategic partnership with Li-Cycle Holdings Corp. (NYSE: LICY), a leading lithium-ion battery recycler in North America. Glencore will subscribe for convertible debt in Li-Cycle and Li-Cycle will become a preferred partner for Glencore in the lithium-ion battery recycling sector.
The key commercial arrangements underpinning this strategic partnership will be entered into in connection with the closing of the subscription and will include:
- procuring feedstock for Li-Cycle Spoke facilities and black mass for Li-Cycle’s Hub facilities;
- offtake of black mass from Li-Cycle’s Spoke facilities;
- offtake of battery usable end products produced by Li-Cycle;
- offtake of by-products from Li-Cycle’s facilities; and
- supplying Li-Cycle’s sulfuric acid requirements for its Hub facilities.
Glencore has been working on establishing regional platforms across the world to localise battery raw material supply chains within key regions in a scalable and sustainable manner, enabling a set of key partners to connect to these platforms and sees Li-Cycle as a key strategic partner in this effort.
With the addition of this strategic partnership with Li-Cycle, Glencore will seek to combine primary and recycled battery raw materials to produce battery grade end products. This will enable auto manufacturers to meet their EV ambitions while also being able to meet key regulatory directives related to battery raw materials. This will be facilitated through the localisation of supply chains and increasing recycled content in battery raw materials over time.
In Europe, Glencore will work to assess the feasibility of utilising our existing asset footprint with a view towards re-purposing some of our assets. This will reduce the lead time for achieving industrial scale production of battery grade end products.
Glencore will also explore, together with other appropriate supply chain partners, the production of precursor cathode active material (pCAM) in Europe and potentially North America.
Kunal Sinha, Head of Recycling at Glencore, said: “We are excited to announce this new strategic partnership with Li-Cycle. We both believe that battery recycling will form a key part of the energy transition. 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.”
Subject to the satisfaction of customary conditions precedent and entry into the key commercial agreements described above, which is expected in the second quarter of 2022, Glencore will subscribe for $200 million of convertible debt in Li-Cycle. If Glencore elects to convert during the conversion option period, Glencore would hold an approximate 10% equity stake in Li-Cycle.
Upon closing, Glencore will have the right to nominate one board member to the Li-Cycle board. Kunal Sinha will be nominated by Glencore.
For further information please contact:
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m: +41 79 737 56 42
t: +41 41 709 24 62
m: +41 79 904 33 20
Glencore LEI: 2138002658CPO9NBH955
Notes for Editors
Glencore is one of the world’s largest global diversified natural resource companies and a major producer and marketer of more than 60 responsibly - sourced commodities that advance everyday life. Through a network of assets, customers and suppliers that spans the globe, we produce, process, recycle, source, market and distribute the commodities that enable decarbonisation while meeting the energy needs of today.
Glencore companies employ around 135,000 people, including contractors. With a strong footprint in over 35 countries in both established and emerging regions for natural resources, our marketing and industrial activities are supported by a global network of more than 40 offices.
Glencore's customers are industrial consumers, such as those in the automotive, steel, power generation, battery manufacturing and oil sectors. We also provide financing, logistics and other services to producers and consumers of commodities.
Glencore is proud to be a member of the Voluntary Principles on Security and Human Rights and the International Council on Mining and Metals. We are an active participant in the Extractive Industries Transparency Initiative.
Glencore recognises our responsibility to contribute to the global effort to achieve the goals of the Paris Agreement. Our ambition is to be a net zero total emissions company by 2050. In August 2021, we increased our medium-term emission reduction target to a 50% reduction by 2035 on 2019 levels and introduced a new short-term target of a 15% reduction by 2026 on 2019 levels.
About Li-Cycle Holdings Corp.
Li-Cycle (NYSE: LICY) is on a mission to leverage its innovative Spoke & Hub Technologies™ to provide a customer-centric, end-of-life solution for lithium-ion batteries, while creating a secondary supply of critical battery materials. Lithium-ion rechargeable batteries are increasingly powering our world in automotive, energy storage, consumer electronics, and other industrial and household applications. The world needs improved technology and supply chain innovations to better manage battery manufacturing waste and end-of-life batteries and to meet the rapidly growing demand for critical and scarce battery-grade raw materials through a closed-loop solution. For more information, visit .
The companies in which Glencore plc directly and indirectly has an interest are separate and distinct legal entities. In this document, “Glencore”, “Glencore group” and “Group” are used for convenience only where references are made to Glencore plc and its subsidiaries in general. These collective expressions are used for ease of reference only and do not imply any other relationship between the companies. Likewise, the words “we”, “us” and “our” are also used to refer collectively to members of the Group or to those who work for them. These expressions are also used where no useful purpose is served by identifying the particular company or companies.