Li-Cycle Provides Business Update, Following Announcement of $75 Million Investment from Glencore - Seite 3

The Company has been conducting an internal technical and economic review of the Rochester Hub project in order to assess a possible change in the project development strategy. The internal technical review has focused on constructing, commissioning and operating only those process areas needed to produce two key products: lithium carbonate and MHP, containing nickel, cobalt and manganese. The construction, commissioning and operating costs for process areas associated with production of nickel sulphate and cobalt sulphate, as originally planned for the Rochester Hub, have not been included in the internal technical review and there are no current plans that include production of nickel sulphate and cobalt sulphate. The internal technical review confirmed the technical viability of the MHP process and allows the project to proceed on a schedule aligned with the Company's current expectations regarding the timing and evolution of the battery recycling and EV markets, subject to obtaining any required permits, regulatory approvals, if needed, and additional financing.

As part of the internal technical review, the Company has conducted an engineering study internally and estimates the cost to complete (“CTC”) the Rochester Hub project under the MHP scope at approximately $508 million, including approximately $115 million of costs incurred but not yet paid as of December 31, 2023. Taking into account total cash spend of approximately $452 million as of December 31, 2023, the revised estimated project cost of the Rochester Hub Project is approximately $960 million for the MHP scope. The increase in estimated project cost as compared to the prior range from November 2023 of approximately $850 million to approximately $1 billion, that included the expected production of nickel sulphate and cobalt sulphate, is primarily due to further refinement of the methodology used for estimating the project cost based on an MHP scope and the cost required to complete the MHP project.

The CTC estimate for the MHP scope is based solely upon the internal technical review, is subject to a number of assumptions, including refining detailed engineering, procurement, construction activities, including the cost of labor and is likely to change. The Company continues to complete its comprehensive review work, including re-engaging and re-bidding construction subcontracts. In addition to the CTC, the Company will incur costs during the construction pause between October 23, 2023 to the potential project re-start date, which the Company expects to fund with current cash and required additional interim funding. The Company will also incur other costs such as working capital, commissioning and ramp-up costs and financing costs which will be included in the full funding solution.