Li-Cycle and Glencore strategic commercial
partnership creates an integrated platform supplying a global
customer base with both primary and recycled critical battery
materials
Glencore designated Li-Cycle as a preferred
global lithium-ion battery recycling partner
Glencore Head of Recycling joins Li-Cycle’s
Board of Directors
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, today announced that it has executed long-term commercial
agreements with Glencore plc (LON: GLEN) (“Glencore”), a leading
provider of primary metals for the production of electric vehicle
(EV) batteries. The Company also announced that Glencore has
concurrently completed its previously announced $200 million
investment in Li-Cycle through the purchase of a five-year
convertible note, and that Kunal Sinha, Glencore’s Head of
Recycling, has been appointed to Li-Cycle’s Board of Directors.
“We’re pleased to launch our strategic partnership with
Glencore, enabling us to pursue our shared vision to enable
sustainable, localized supply chains for electrification metals. I
am confident that we can better serve our collective customers by
leveraging our complementary capabilities and delivering an
integrated approach by combining primary and recycled metal
supply,” said Ajay Kochhar, Li-Cycle co-founder and Chief Executive
Officer. “Further, Glencore’s investment bolsters Li-Cycle’s
already strong balance sheet, further enhancing our ability to
complete our current pipeline of Spoke and Hub facilities and meet
our operating needs while maintaining financial flexibility.”
Glencore is a leading provider of primary metals for lithium-ion
batteries and electric vehicles, including being the top producer
of cobalt and a top three producer of class I nickel globally.
Li-Cycle is a leading lithium-ion battery recycling company,
driving value through the Company’s robust base of battery supply
customers and its innovative Spoke & Hub Technologies™.
Bringing Li-Cycle’s and Glencore’s complementary capabilities
together will help accelerate the path to a circular economy for
critical materials in the lithium-ion battery supply chain.
“Achieving our ambition of NetZero total emissions by 2050,
requires working collaboratively with other like-minded partners.
We are pleased to work with Li-Cycle as a key strategic partner in
closing the loop for battery metals, at scale, in localized supply
chains, with a sustainable footprint that effectively combines
primary as well as recycled raw materials,” said Kunal Sinha,
Glencore’s Head of Recycling and Li-Cycle’s newly-appointed
director.
Completion of Commercial Agreements
With the commercial agreements in place, Glencore will become an
important partner to source battery feedstock for Li-Cycle’s Spoke
facilities, as well as both black mass and sulfuric acid for
Li-Cycle’s Hub facilities. Glencore will also complement the
Company’s existing partners through off-take and marketing of
Li-Cycle’s battery-grade end products and certain by-products
produced at the Company’s Spokes and Hubs. Li-Cycle management will
provide an overview of this strategic partnership in conjunction
with its fiscal second quarter 2022 earnings webcast and conference
call scheduled for Tuesday, June 14, 2022.
Closing of Glencore $200 Million Financial Investment
Glencore completed its investment by purchasing a convertible
note in the aggregate principal amount of $200 million (the
“Note”). The Note has a 5-year term and is convertible into common
shares of the Company (“Common Shares”) at a conversion price of
$9.95 per Common Share. Interest payments will be in cash or
payments in-kind (“PIK”), at Li-Cycle’s election. The Note is
redeemable at the option of Li-Cycle at a redemption price equal to
100% of the principal amount of the Note then outstanding plus
accrued and unpaid interest, and subject to the issuance of certain
warrants to acquire additional Common Shares at a price per share
equal to the conversion price of the Note until the original
maturity date of the Note. In addition, Glencore has entered into
an amended and restated standstill agreement and Li-Cycle has
granted certain registration rights to Glencore. If Glencore elects
to convert the entire aggregate principal amount of the Note,
Glencore will hold an approximate 10% equity stake in Li-Cycle
(based on the current number of outstanding Common Shares and not
factoring in any accumulated PIK interest).
Kunal Sinha Joins Li-Cycle Board of Directors
Pursuant to certain director nomination rights granted to
Glencore, in connection with Glencore’s investment in Li-Cycle,
Kunal Sinha, Glencore’s Head of Recycling, has joined Li-Cycle’s
Board of Directors. Mr. Sinha has been with Glencore since 2012.
Prior to his current role, Mr. Sinha was the CEO of Glencore’s
North American Sulfuric Acid business. Prior to joining Glencore,
he worked for six years in Management Consulting at ZS Associates.
Mr. Sinha holds an MBA from the London Business School, an M.S. in
Systems and Entrepreneurial Engineering from the University of
Illinois at Urbana-Champaign, and a B.Tech. in Mechanical
Engineering from the Indian Institute of Technology (IIT),
Kharagpur.
Additional information regarding this announcement may be found
in a Form 6-K that will be filed with the U.S. Securities and
Exchange Commission and the Ontario Securities Commission.
This announcement is neither an offer to sell nor a solicitation
of an offer to buy any of these securities and shall not constitute
an offer, solicitation, or sale in any jurisdiction in which such
offer, solicitation, or sale is unlawful. The Common Shares to be
issued in connection with the Investment have not been registered
under the U.S. Securities Act of 1933, as amended, or any state
securities laws and may not be offered or sold in the United States
absent registration or an applicable exemption from the
registration requirements.
If you have received (or are viewing) a copy of this document
translated into a language other than English, such translated copy
is qualified in its entirety by reference to the English version
thereof, and in the event of any conflict the English version will
govern.
Li-Cycle Fiscal Second Quarter 2022 Earnings Call
Details
The Company’s second quarter earnings conference call and
webcast will be held on Tuesday, June 14, 2022, at 8:30 AM ET.
Investors may listen to the conference call live via audio-only
webcast or through the following dial-in numbers:
Domestic:
1 (800) 909-5202
International:
1 (785) 830-1914
Participant Code:
LICYQ222
Webcast:
https://investors.li-cycle.com
A replay of the conference call/webcast will also be made
available on the Investor Relations section of the Company’s
website at https://investors.li-cycle.com.
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 https://li-cycle.com/.
About Glencore plc
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, they produce, process, recycle, source, market and
distribute the commodities that enable decarbonisation while
meeting the energy needs of today. Glencore’s ambition is to be a
net zero total emissions company by 2050. In August 2021, they
increased their 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. For more
information, please visit the Glencore website at
www.glencore.com.
Forward-Looking Statements
Certain statements contained in this communication 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 “will”, “continue”,
“anticipate”, “expect”, “estimate”, “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, for example, statements about the anticipated benefits
from the proposed collaboration with Glencore, including pursuant
to the long-term commercial agreements between Li-Cycle, Glencore
and, or, their respective affiliates; the ability of Li-Cycle and
Glencore to build localized supply chains for both primary and
recycled sources of key battery materials to drive sustainable
global electrification and better serve their collective customers;
; the growing global market demand for lithium-ion batteries and
their raw material; Li-Cycle’s current and anticipated capital
resources and liquidity requirements ; and the development of
Li-Cycle’s current pipeline of Spoke and Hub facilities, including
its Rochester Hub. These statements are based on various
assumptions, whether or not identified in this communication, which
Li-Cycle believe are reasonable in the circumstances. 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 its Spoke capital
projects in a timely manner and/or on budget, and the risk that
those capital 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; risks
related to international expansion; 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 commercially reasonable terms or at
all when it needs them; Li-Cycle expects 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 will be 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
being subject to the risk of litigation or regulatory proceedings;
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; unfavourable economic conditions, such as
consequences of the global COVID-19 pandemic and international
conflicts; 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" in its Annual Report on Form
20-F filed with the U.S. Securities and Exchange Commission and the
Ontario Securities Commission in Canada on January 31, 2022.
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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220601005511/en/
Li-Cycle Holdings Corp.
Investor Relations Nahla A. Azmy
investors@li-cycle.com
Press Kunal Phalpher media@li-cycle.com
Glencore plc
Investor Relations Martin Fewings t: +41 41 709 28
80 m: +41 79 737 56 42 martin.fewings@glencore.com
Press Charles Watenphul t: +41 41 709 24 62 m: +41 79 904
33 20 charles.watenphul@glencore.com
Grafico Azioni Glencore (LSE:GLEN)
Storico
Da Feb 2024 a Mar 2024
Grafico Azioni Glencore (LSE:GLEN)
Storico
Da Mar 2023 a Mar 2024