Li-Cycle Provides Business Update, Following Announcement of $75 Million Investment from Glencore

Li-Cycle Holdings Corp. (NYSE: LICY) ("Li-Cycle" or the “Company"), a leading global lithium-ion battery resource recovery company, today provided a business update.

“Since embarking on our comprehensive review, we are pleased to report significant progress, including improving our current liquidity position and conducting an internal technical review of the Rochester Hub. We recently announced $75 million of strategic financing from Glencore to enhance our liquidity position and further build on our long-term strategic partnership,” said Ajay Kochhar, Li-Cycle’s President and Chief Executive Officer.

“Additionally, as part of our internal technical review of the Rochester Hub project, we confirmed the technical viability of producing lithium carbonate and mixed hydroxide precipitate (“MHP”). We also continue to work closely with the DOE on the conditional commitment for a loan of up to $375 million. We believe the strategic value of the Rochester Hub is underpinned by strong industry fundamentals driving robust demand for domestic sources of critical battery materials.”

Financing

Following the announcement by the Company in October 2023 of the construction pause for the Rochester Hub project, the Company formed a Special Committee solely composed of independent Board directors (and which excluded Glencore’s Board representative) (the “Special Committee”) and the Special Committee engaged Moelis & Company LLC (“Moelis”) as its financial advisor to explore financing options and to evaluate strategic alternatives. After a robust process conducted by the Special Committee to review and evaluate potential financial and strategic alternatives available to the Company, Li-Cycle entered into an agreement on March 12, 2024 to issue a senior secured convertible note in an aggregate principal amount of $75 million to an affiliate of Glencore plc (LON: GLEN) (“Glencore”), with expected closing on or around March 25, 2024. This demonstrates Glencore’s continued endorsement of Li-Cycle’s Spoke & Hub model, patented recycling technology, and development plans for the Rochester Hub.

Glencore’s $75 million investment represents an interim step in Li-Cycle’s funding strategy to support the Company’s future plans. Li-Cycle continues to assess additional financing opportunities, including continuing to work closely with the DOE Loan Programs Office on the conditional commitment for a loan of up to $375 million under the DOE’s Advanced Technology Vehicles Manufacturing program.