Glencore to make additional $75 Million Strategic Investment in Li-Cycle
DENVER, Colo., Mar 12, 2024 (247marketnews.com)- Li-Cycle Holdings Corp. (NYSE:LICY) reported, this morning, that it entered into an agreement with Glencore to issue a senior secured convertible note in an aggregate principal amount of $75 million, building on their existing long-term partnership.
LICY is trading at $0.54, up $0.14 (+34.23%), on 11.13M shares.
The agreement further demonstrates Glencore’s endorsement of Li-Cycle’s Spoke & Hub model, patented recycling technology, and development plans for the Rochester Hub, as part of Glencore’s ambition to bring more circularity to the battery materials space
Ajay Kochhar, Li-Cycle co-founder and CEO, commented: “We are pleased to secure an additional $75 million investment from Glencore, following Glencore’s June 2022 investment, to improve our liquidity position while we continue our ongoing comprehensive review process. This financing enhances Li-Cycle and Glencore’s existing long-term, strategic partnership and represents an interim step in our funding strategy to support Li-Cycle’s future plans. We also continue to work closely with the U.S. Department of Energy on the conditional commitment for a loan of up to $375 million.”
Tim Johnston, Li-Cycle co-founder and Executive Chairman, commented: “As part of our previously announced comprehensive review, Li-Cycle is continuing to review our global recycling network. We are also reviewing our go-forward strategy for the paused Rochester Hub, including analyzing potential end-product mix options and construction strategy. We believe the demand for critical battery materials continues to accelerate and Li-Cycle continues to work to position itself as a future leader in the production of critical battery materials through our sustainable, safe, and patented recycling technology.”
Kunal Sinha, Global Head of Recycling for Glencore, and Non-Executive Director of Li-Cycle’s Board of Directors, commented: “Glencore is committed to bringing scalable and sustainable circularity into the supply chain of battery materials. Our original investment in Li-Cycle, alongside key commercial agreements, formed part of this strategy. Today, we are pleased to further support Li-Cycle through this additional $75 million investment so both Li-Cycle and Glencore can continue to build the battery circularity platform of choice for our customers.”
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