LI-CYCLE HOLDINGS CORP. Li-Cycle Holdings Corp. announced a strategic partnership with Glencore plc. The strategic partnership will better serve the EV battery supply chain by providing customers with an integrated approach for their primary and recycled metal needs.
Li-Cycle and Glencore have executed a global feedstock supply agreement under which Glencore will supply all types of manufacturing scrap and end-of-life lithium-ion batteries to Li-Cycle. Li-Cycle and Glencore have also entered into a non-binding Term Sheet for global, long-term strategic contracts, which would complement Li-Cycle's existing off-take and marketing agreements, including: Supply of black mass to Li-Cycle's Hubs. Off-take of black mass from Li-Cycle's Spokes.
Off-take of battery-grade end products produced by Li-Cycle's Hubs. Off-take of by-products from Li-Cycle's Spokes and Hubs, and Supply of sulfuric acid, one of the key input reagents for Li-Cycle's Hubs. Upon execution of the commercial agreements, Glencore will make a $200 million investment in Li-Cycle and Glencore will have the right to nominate one board member to the Li-Cycle board.
Li-Cycle has agreed to nominate Kunal Sinha, Glencore's Head of Recycling, to the Li-Cycle Board of Directors. Critical material supply has been recognized as a key success factor for enabling electrification around the world and localized supply sources are increasingly important to EV strategies. Glencore and Li-Cycle have a shared vision to enable sustainable, localized supply chains for electrification and recognize that both primary and secondary (or recycled) critical materials are required to deliver on this vision.
