Lithium-ion battery recycling firm Li-Cycle has filed for Chapter 15 bankruptcy in the United States and creditor protection within Canada. The Canada-based company operated recycling plants in Arizona, Alabama and New York.
Li-Cycle largely focused on EV battery recycling but was beginning to accommodate stand-alone energy storage systems. According to its website, its processing facility in New York was curtailed, and construction on its hydrometallurgical recycling process hub in Rochester was not completed. In addition to the plants in Arizona and Alabama, Li-Cycle operated a plant in Germany and was looking at new locations in Italy and Norway.
Li-Cycle has entered into an equity and asset stalking horse agreement with Glencore Canada Corp., which is Li-Cycle’s largest secured creditor. Glencore has agreed to a bid of at least $40 million for Li-Cycle’s assets, including the U.S. and German operations and any intellectual property.
Li-Cycle’s Germany operations is expected to have sufficient working capital to continuing operating during these bankruptcy proceedings.
The company was announcing new recycling partnerships and investments as recently as three months ago.
“The company was announcing new recycling partnerships and investments as recently as three months ago.”
A substantial stench of the Trump Tariff Cudgel, (TTC) affecting a Canadian early adopter and expansion of lithium ion battery (black mass) recycling in the U.S.. Will Glencore win and stay the course for already built Li-Cycle infrastructure in the U.S. or is this the whimper before the untimely death of Li-Cycle in the U.S.?
The “self fulfilling prophecy” of lithium ion can’t be recycled is becoming more true than false now with the loss of Li-Cycle, it will be up to Glencore to keep this alive until the Trump equivalent of “Apprentice Presidential” lame duck’s out and is canceled by 2029.
“The company was announcing new recycling partnerships and investments as recently as three months ago.”
SO, this leaves the country with Redwood Materials, whose privately owned company formed by former TESLA employee (CTO) and now one of the Board of Directors of TESLA JB Straubel is the only functioning large lithium ion recycler in the U.S. at this time? Interesting, now what?