Li-Cycle is getting $200 million from Glencore as part of a larger supply deal.
The Swiss materials giant will ship burnt-out batteries and scraps to Li-Cycle, which will recover the high-demand metals so they can be used in electric vehicle batteries and other applications.
Li-Cycle uses a spoke-and-hub approach to recover materials. At their spoke facilities, they shred spent batteries and use a water-based system to break them down. The technique uses less energy than the other major method of melting batteries. One downside of the hydrometallurgical approach is that it produces more wastewater that needs to be treated.
Black mass is a substance that Li-Cycle ships from its spoke facilities to its hub facilities for further processing. The black mass can be separated into a variety of materials, including those that can be used to make new batteries.
Li-Cycle will be getting black mass for processing and manufacturing. It is easier to recycle scrap than whole batteries, so securing a supply could be beneficial for the startup.
The stock of Li-Cycle shot up 9% to a high of $7.89 per share after the news of the convertible financing deal broke. The firm went public on the New York Stock Exchange in August of last year. The battery recycler has secured an additional $200 million from Glencore, as well as an additional $50 million from LG and $100 million from Koch Industries.
In an investor update late last year, the company said that it intends to boost its recycling operations around the world, a shift for the company that is known more for mining virgin Ore than diversion of waste from landfills. The move should help bring down the carbon intensity of the materials. The company said it is targeting net-zero emissions by the year 2050.
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