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Glencore, Li-Cycle enter global strategic partnership for EV battery supply chain

An image of recovered battery materials. Image courtesy: Li-Cycle

Li-Cycle Holdings Corp. (Li-Cycle), the leading lithium-ion resource recovery and Li-ion battery re-cycler in North America entered a strategic partnership with Glencore Plc (Glencore), a leading primary metals provider for EV batteries production to better serve the EV battery supply chain.

As per the long-term battery supply chain agreement, the two companies will create an integrated network to supply primary and secondary Li-ion battery materials.

"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 stated in its official press release.

The two entities have also entered non-binding term sheet for global and long-term strategic contracts that would add to 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

"We are thrilled to have Glencore as a long-term strategic investor and global commercial partner. Bringing our complementary capabilities together will accelerate the path to a circular economy for critical materials in the lithium-ion battery supply chain," said Ajay Kochhar, Li-Cycle Co-Founder, and Chief Executive Officer.

"These agreements further secure and diversify our lithium-ion battery supply and feedstock sources, competitively positioning our network expansion in North America and Europe."

According to the new partnership, upon execution of the commercial agreements, Glencore will make a $200 million investment in Li-Cycle and 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.

"This is a key step in establishing a strong long-term foundation for the vertical integration of the battery materials supply chain," said Kunal Sinha, Head of Recycling at Glencore.

"Together, we will be expanding the spectrum of battery material supply solutions to a broader global customer base, particularly in Europe and North America." 

Author : Shraddha Kakade
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