RecycLiCo Battery Materials and Zenith Chemical Announce a US$25 Million Lithium-ion Battery Recycling Joint Venture in Taiwan

SURREY, British Columbia, June 12, 2023 (GLOBE NEWSWIRE) -- RecycLiCo Battery Materials Inc. (“RecycLiCo”), a battery materials company specializing in the development of novel and environmentally friendly lithium-ion battery recycling and upcycling technologies, is pleased to announce it has entered a 50-50 joint venture with Zenith Chemical Corporation (“Zenith”) to build a 2,000 metric ton per year lithium-ion battery recycling plant in Taiwan. The initial plant, estimated to cost US$25 million will be dedicated to processing and converting lithium-ion battery waste into valuable resources such as lithium-ion battery precursor cathode active material, lithium hydroxide monohydrate, and lithium carbonate.

The parties have agreed to build their first commercial scale battery recycling facility and contribute 50% of the required capital in three initial stages, with the balance being advanced as required to fund construction and start-up costs. The Zenith contribution (50%) will be funded in cash and RecycLiCo will receive a 10% interest in the joint venture company in return for a license of its technology, with the balance (40%) of its interest in cash.

In building the first commercial battery recycling plant, based on RecycLiCo’s technology, the joint venture combines the extensive expertise, resources, and novel technology of both RecycLiCo and Zenith. The joint venture facility will leverage RecycLiCo’s lithium-ion battery recycling process and Zenith’s existing land, infrastructure, and labor resources in Taiwan.

Since signing a Memorandum of Understanding ("MOU") in February 2022, RecycLiCo and Zenith have successfully collaborated with a leading battery materials company to validate the RecycLiCo process and to confirm the quality of its high-nickel cathode precursors and lithium chemical products.

Zenith specializes in the production of nickel-based chemicals, including high-purity nickel sulfate for lithium-ion batteries. Zenith’s products have gained recognition and qualification from major cathode producers worldwide. Zenith also has a shareholding partnership with Hanwa Co., Ltd, a large publicly traded Japanese distribution company known for its expertise in lithium-ion battery-related materials. Additionally, Zenith collaborates, through a joint venture, with Central Glass Co., Ltd., a leading Japanese publicly traded company specializing in fluorine-based chemicals and cater to the semiconductor and lithium-ion battery markets.