Li-Cycle Holdings Corp. Secures $475 Million Loan Facility from U.S. Department of Energy to Support Rochester Hub Project

Li-Cycle Holdings Corp., a global lithium-ion battery resource recovery company, has successfully inked an agreement with the U.S. Department of Energy for a substantial loan facility totaling up to $475 million. This marks an increase of $100 million over the original conditional commitment and signifies a pivotal development for the company’s flagship Rochester Hub project in upstate New York.

The loan facility, known as the DOE Loan Facility, is a unique arrangement and stands as the primary loan finalized for a lithium-ion battery materials recycling company. This move solidifies Li-Cycle’s critical role within the U.S. battery materials supply chain as a significant domestic supplier of recycled essential battery materials.

Under the agreement, the DOE Loan Facility, structured under the DOE’s Advanced Technology Vehicles Manufacturing program, will aid in the development of the Rochester Hub project. This marks a significant milestone towards creating a sustainable, closed-loop battery supply chain imperative for the region’s shift towards clean energy.

Key highlights of the DOE Loan Facility include an approximate 15-year term with a final maturity date of March 15, 2040. The loan allows for capitalized interest during the construction phase, providing financial support until June 15, 2027, without scheduled principal repayments. The interest rates are fixed based on the U.S. Treasury rate, with attractive terms compared to other financing options available to Li-Cycle.

Li-Cycle’s strategic objectives align with the financing, aiming to restart construction at the Rochester Hub project. The successful completion of this project is expected to position the Rochester Hub as North America’s first commercial hydrometallurgical resource recovery facility, aiding in the sustainable production of battery-grade lithium carbonate and mixed hydroxide precipitate.

The Company estimates the total capital cost of the Rochester Hub project through to mechanical completion to be around $960 million, with the remaining cost to complete at approximately $487 million. Li-Cycle is actively pursuing financing and strategic alternatives to complete the funding package necessary for the Rochester Hub project, emphasizing the significance of the DOE Loan Facility in this process.

Details and further information regarding this development have been disclosed in a Form 8-K filing with the U.S. Securities and Exchange Commission. For more information about Li-Cycle Holdings Corp. and its mission to create a sustainable battery supply chain, visit their website at https://li-cycle.com/.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Li-Cycle’s 8K filing here.

About Li-Cycle

Li-Cycle Holdings Corp. engages in the lithium-ion battery resource recovery and lithium-ion battery recycling business in North America. The company offers a mix of cathode and anode battery materials, including lithium, nickel, and cobalt, as well as graphite, copper, and aluminum; and copper and aluminum metals.