March 13, 2024: Troubled lithium recycling tech developer Li-Cycle mentioned on March 12 an additional $75 million funding from mining group Glencore would enhance its liquidity.
Stress has been mounting on Li-Cycle after it suspended development of its Rochester lithium battery recycling hub in New York final October.
The suspension got here after Li-Cycle mentioned the estimated value may double to as much as $1 billion.
Li-Cycle has since fashioned a particular committee “composed solely of impartial and disinterested members” of its board to work with funding financial institution, Moelis & Firm, on a evaluation of the Rochester undertaking and “to guage potential monetary and strategic alternate options”, co-founder and CEO Ajay Kochhar revealed on March 12.
Glencore initially invested $200 million in Li-Cycle in 2022.
Kochhar mentioned the newest Glencore funding represented an interim step in Li-Cycle’s funding technique. “We additionally proceed to work carefully with the US Division of Vitality (DOE) on the conditional dedication for a mortgage of as much as $375 million.”
Key Republican members of the Home of Representatives have known as on the DOE’s Mortgage Applications Workplace to present particulars of the proposed mortgage — saying they have been involved concerning the authorities making doable “reckless investments”.
Individually, at the very least two regulation corporations have introduced the submitting of sophistication motion lawsuits in opposition to Li-Cycle, regarding statements made by the agency about Rochester’s prices.
In the meantime, Li-Cycle is anticipated to problem full yr outcomes on or earlier than March 15.