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 announce the start of commercial operations at its first Spoke recycling facility in Europe, located in Magdeburg, Germany.
The Germany Spoke’s first main processing line has now commenced operations, with the second main line expected to start later in 2023. Each main line has the capacity to process up to 10,000 tonnes of lithium-ion battery material per year. With an additional 10,000 tonnes of ancillary capacity planned, the facility is expected to have a total capacity of 30,000 tonnes per year, making the Germany Spoke the largest Spoke in Li-Cycle’s current portfolio and one of the largest facilities of its kind on the continent.
The Germany Spoke utilizes Li-Cycle’s patented and environmentally friendly ‘Generation 3’ Spoke technology to directly process all forms of lithium-ion battery waste, including full electric vehicle (EV) battery packs, without the need for discharging, dismantling or thermal processing. As Li-Cycle’s first Spoke facility outside North America, the startup of the Germany Spoke reinforces Li-Cycle’s ability to deploy its proprietary modular technology and business model anywhere in the world, growing in lockstep with customer demand. Germany represents the largest market for both battery manufacturing scrap and the expected supply of end-of-life lithium-ion batteries in Europe.
“We are thrilled to announce that Li-Cycle has started operations in Europe with the opening of our largest Spoke to date,” said Tim Johnston, co-founder and Executive Chair of Li-Cycle. “This is a great milestone for Li-Cycle as we continue to strengthen our position as a leading global battery recycling and resource recovery company. The new Spoke facility in Germany will serve as an anchor point for Li-Cycle’s expansion in Europe and support our growing customer base, including global battery manufacturers and automakers, in the largest battery market on the continent. We are excited to continue expanding our footprint around the world to build local and sustainable closed-loop battery supply chains to support the clean energy transition.”
Li-Cycle’s Germany Spoke leverages existing infrastructure with access to clean renewable energy and key transportation outlets. The Spoke is strategically located near key manufacturing centers to support the accelerating demand from Li-Cycle’s growing European customer base. The Germany Spoke has created approximately 50 new jobs, is more than 20,000 square metres (approximately 200,000 square feet) in size, and has approximately 10,000 square metres (approximately 100,000 square feet) in warehousing capacity.
Across its five Spokes in North America and Europe, Li-Cycle is expected to have a total input processing capacity of up to 81,000 tonnes of lithium-ion battery material per year. The network of five operating Spokes, which are located in Kingston, Ontario; Rochester, New York; Gilbert, Arizona; Tuscaloosa, Alabama; and now Magdeburg, Germany, ensures that the Company has an established footprint in key strategic regions to maintain its significant first-mover advantage on both continents.
Li-Cycle has additional European Spokes planned in France and Norway, with future planned capacity across its global Spoke network of more than 100,000 tonnes of lithium-ion battery material per year. Li-Cycle’s Spokes produce an intermediate product called “black mass,” which includes a variety of valuable battery materials such as lithium, nickel and cobalt.
Li-Cycle plans to process the black mass it produces from its Spoke network at its future Hub facilities. The Company’s first commercial Hub facility is under construction in Rochester, New York, and is expected to commence commissioning later this year and process up to 35,000 tonnes of black mass per year.
Li-Cycle has also announced plans to develop a second commercial Hub in Europe. Li-Cycle and Glencore anticipate forming a 50/50 joint venture that would repurpose part of the existing Glencore metallurgical complex in Portovesme, Italy to create this new Hub (the “Portovesme Hub”). A definitive feasibility study for the project is currently underway. The Portovesme Hub would be a landmark project for Europe’s battery recycling industry and is expected to be the largest source of recycled battery-grade lithium, as well as recycled nickel and cobalt, on the European continent. Once operational, the Portovesme Hub is expected to have a processing capacity of 50,000-70,000 tonnes of black mass per year.
About Li-Cycle Holdings Corp.
Li-Cycle (NYSE: LICY) is a leading global lithium-ion battery resource recovery company and North America’s largest pure-play lithium-ion battery recycler, with a rapidly growing presence across Europe. The Company leverages its innovative, sustainable and patented Spoke & Hub Technologies™ to provide a safe, scalable, customer-centric solution to recycle all different types of lithium-ion batteries. Established in 2016, and with major customers and partners around the world, Li-Cycle recovers critical battery-grade materials to create a domestic closed-loop battery supply chain for a clean energy future. 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”, “anticipate”, “intend”, “expect”, “should”, “would”, “could”, “plan”, “potential”, “future”, “target” 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 about: the expectation that the Germany Spoke will sustainably process up to 30,000 tonnes of lithium-ion battery material per year; the expected total global Li-Cycle processing capacity of more than 80,000 tonnes per year; the expected start of the second main line of the Germany Spoke later in 2023; the expectation that the Germany Spoke will serve as an anchor point for Li-Cycle’s expansion in Europe and that it will support Li-Cycle’s growing customer base, including global battery manufacturers and automakers, in the largest battery market in Europe; the expectation that Li-Cycle will continue expanding its footprint around the world to build local and sustainable closed-loop battery supply chains to support the clean energy transition; the planned addition of Spokes in France and Norway; Li-Cycle’s future planned capacity across its global Spoke network of more than 100,000 tonnes of lithium-ion battery material per year; Li-Cycle’s plans to process the black mass it produces from its Spoke network at its future Hub facilities; the expectation that the Rochester Hub will commence commissioning later this year and process up to 35,000 tonnes of black mass per year; the anticipated joint venture between Li-Cycle and Glencore to create a commercial Hub in Portovesme, Italy; the expectation that the Portovesme Hub would be a landmark project for Europe’s battery recycling industry and the largest source of recycled battery-grade lithium, as well as recycled nickel and cobalt, on the European continent; and the expectation that, once operational, the Portovesme Hub would have processing capacity of 50,000-70,000 tonnes of black mass per year. These statements are based on various assumptions, whether or not identified in this communication, including but not limited to assumptions regarding the timing, scope and cost of Li-Cycle’s 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; Li-Cycle’s ability to retain and hire key personnel and maintain relationships with customers, suppliers and other business partners; general economic conditions; currency exchange and interest rates; compensation costs; and inflation. 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 economically and efficiently source, recover and recycle lithium-ion batteries and lithium-ion battery manufacturing scrap, as well as third party black mass, and to meet the market demand for an environmentally sound, closed-loop solution for manufacturing waste and end-of-life lithium-ion batteries; Li-Cycle’s inability to successfully implement its global growth strategy, on a timely basis or at all; Li-Cycle’s inability to manage future global growth effectively; Li-Cycle’s inability to develop the Rochester Hub, 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; Li-Cycle’s failure to materially increase recycling capacity and efficiency; Li-Cycle may engage in strategic transactions, including acquisitions, that could disrupt its business, cause dilution to its shareholders, reduce its financial resources, result in incurrence of debt, or prove not to be successful; one or more of Li-Cycle’s current or future facilities becoming inoperative, capacity constrained or if its operations are disrupted; additional funds required to meet Li-Cycle’s capital requirements in the future not being available to Li-Cycle on acceptable terms or at all when it needs them; Li-Cycle expects to continue to incur significant expenses and may not achieve or sustain profitability; problems with the handling of lithium-ion battery cells that result in less usage of lithium-ion batteries or affect Li-Cycle’s operations; Li-Cycle’s inability to maintain and increase feedstock supply commitments as well as securing new customers and off-take agreements; a decline in the adoption rate of EVs, or a decline in the support by governments for “green” energy technologies; decreases in benchmark prices for the metals contained in Li-Cycle’s products; changes in the volume or composition of feedstock materials processed at Li-Cycle’s facilities; the development of an alternative chemical make-up of lithium-ion batteries or battery alternatives; Li-Cycle’s revenues for the Rochester Hub are derived significantly from a single customer; Li-Cycle’s insurance may not cover all liabilities and damages; Li-Cycle’s heavy reliance on the experience and expertise of its management; Li-Cycle’s reliance on third-party consultants for its regulatory compliance; Li-Cycle’s inability to complete its recycling processes as quickly as customers may require; Li-Cycle’s inability to compete successfully; increases in income tax rates, changes in income tax laws or disagreements with tax authorities; significant variance in Li-Cycle’s operating and financial results from period to period due to fluctuations in its operating costs and other factors; fluctuations in foreign currency exchange rates which could result in declines in reported sales and net earnings; unfavorable economic conditions, such as consequences of the global COVID-19 pandemic; natural disasters, unusually adverse weather, epidemic or pandemic outbreaks, cyber incidents, boycotts and geo-political events; failure to protect or enforce Li-Cycle’s intellectual property; Li-Cycle may be subject to intellectual property rights claims by third parties; Li-Cycle’s failure to effectively remediate the material weaknesses in its internal control over financial reporting that it has identified or if it fails to develop and maintain a proper and effective internal control over financial reporting. These and other risks and uncertainties related to Li-Cycle’s business are described in greater detail in the section entitled “Risk Factors” and “Key Factors Affecting Li-Cycle’s Performance” in its Annual Report on Form 20-F filed with the U.S. Securities and Exchange Commission 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.
