Li-Cycle Enters Multi-Year Strategic Deal With LG; Secures $50M Equity Investment

Li-Cycle Holdings Corp LICY plans to proceed with the construction of its first commercial Hub facility, being developed within the Eastman Business Park near Rochester, New York.
Li-Cycle will increase the input processing capacity of the Hub by over 40% and be able to process battery material equivalent to ~225,000 electric vehicles per year.
The company estimates that the Hub will require a total capital investment of ~$485 million (+/-15%), funded from existing balance sheet cash.
It held cash and equivalents of $2.4 million as of July 31, 2021.
Strategic Collaboration: Additionally, Li-Cycle entered a manufacturing scrap supply and nickel sulphate off-take agreement non-binding letter of intent with LG Chem, Ltd., and LG Energy Solution, Ltd.
LG Chem and LG Energy Solution will make a $50 million equity investment in Li-Cycle at $11.32 per common share upon completing the commercial agreements by March 13, 2022.
Li-Cycle will supply LG Chem and LG Energy Solution with 20,000 tonnes of nickel contained in nickel sulphate from its Rochester Hub facility over ten years, starting in 2023.
Price Action: LICY shares are trading lower by 4.06% at $11.10 on the last check Tuesday.