Original press release developed via Business Wire
TORONTO, Ontario (May 24, 2023) – Li-Cycle Holdings Corp.
(NYSE: LICY) (“Li-Cycle” or the “Company”), an industry leader in lithium-ion battery resource recovery and the leading lithium-ion battery recycler in North America, was honoured to host U.S. Secretary of Energy, Jennifer Granholm, and U.S. Senator, Mark Kelly, at the Company’s lithium-ion battery recycling facility located in Gilbert, Arizona.
During the visit, Secretary Granholm and Senator Kelly were joined by Li-Cycle’s co-founder and CEO, Ajay Kochhar, as they toured Li-Cycle’s Spoke facility and observed lithium-ion batteries being recycled through Li-Cycle’s patented submerged shredding process. Li-Cycle’s Arizona Spoke utilizes technology to directly process full electric vehicle (EV) batteries and energy storage batteries. The leaders discussed the importance of Li-Cycle’s safe and environmentally friendly Spoke & Hub Technologies™, which play a key role in building a cleaner, domestic lithium-ion battery supply chain in the U.S.
“The Biden-Harris administration has a vision for a clean energy economy that is powered by American workers, innovators, and entrepreneurs,” said Secretary Jennifer Granholm, U.S. Department of Energy. “Companies like Li-Cycle are helping to strengthen our energy security and advance the next generation of battery manufacturing and recycling technologies – bringing Arizona and the nation one step closer to reaching our climate goals.”
“Clean energy leaders like Li-Cycle are bringing jobs back to states like Arizona and reducing our reliance on foreign sources of the critical minerals that power our modern economy,” said U.S. Senator of Arizona, Mark Kelly. “I appreciate the opportunity to see their technology firsthand alongside Secretary Granholm and look forward to continuing the work to boost our clean energy manufacturing and production.”
“We were excited to have hosted Secretary Granholm and Senator Kelly at our Spoke recycling facility in Arizona,” said Ajay Kochhar, co-founder and CEO of Li-Cycle. “The southwestern region of the U.S. is experiencing rapid growth as part of North America’s broader battery supply chain, and we look forward to continuing to utilize our patented technology to sustainably recycle lithium-ion batteries in the region. Arizona provides significant opportunities for Li-Cycle as the state continues to lead as a clean technology hub and leading battery marketplace. We are excited to continue supporting local jobs and the growth of Arizona’s clean tech industry.”
Li-Cycle’s Arizona Spoke commenced operations in May 2022 and has total processing capacity of 18,000tonnes of lithium-ion battery material per year, with permitted future expansion potential, including flexibility to expand with a second main line. In addition to being a strategic location for Li-Cycle’s Spoke, close to commercial customers for the sustainable supply of battery materials, Gilbert has a highly talented work force and existing infrastructure that benefits the Company’s operations. Li-Cycle continues to strengthen its working relationships with the local community, partnering with several organizations, such as the Arizona Commerce Authority, the Greater Phoenix Economic Council, and many more. Li-Cycle employs approximately 45 people in Arizona.
Li-Cycle recently received a conditional commitment for a loan of $375 million from the U.S. Department of Energy’s Advanced Technology Vehicles Manufacturing program to support the development of its first Hub (“Rochester Hub”) resource recovery facility, which is under development in Rochester, New York. The Company is on track to close the transaction in mid-2023.
The Rochester Hub is on track to start commissioning in late 2023. The facility is designed to process up to 35,000 tonnes of black mass per year, including black mass generated by the Arizona Spoke, sufficient for up to 225,000 electric vehicles. In addition to the production of battery grade nickel and cobalt sulphate, the Rochester Hub is expected to be the first source of recycled battery-grade lithium carbonate in North America.
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 battery-grade 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 https://li-cycle.com/.
Nahla A. Azmy
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: Li-Cycle’s expectation that it will continue to utilize its patented technology to sustainably recycle lithium-ion batteries in the region; the expected opportunities for Li-Cycle in Arizona; the expectation that Li-Cycle will continue to support local jobs and the growth of Arizona’s clean tech industry; the statements regarding the permitted future expansion potential of Li-Cycle’s Arizona Spoke; the expectation that Li-Cycle will receive a loan of up to $375 million from the DOE, and that the transaction will close in mid-2023; the expectation that the Rochester Hub will start commissioning in late 2023, that it will produce battery grade nickel and cobalt sulphate, and that it will be the first source of recycled battery-grade lithium carbonate in North America. 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.
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Total processing capacity includes main line and ancillary processing.