LG to invest in Li-Cycle

Li-Cycle has signed a non-binding letter of intent with LG Energy Solution and its mother co

mpany LG Chem concerning supply of manufacturing scrap and off-take of nickel sulphate. According the agreement LG Energy will supply Li-Cycle with nickel-bearing lithium-ion battery scrap and certain other lithium-ion battery materials while Li-Cycle will over a period of 10 years supply LGES and LGC with 20,000 tonnes of nickel contained in nickel sulphate from the company's hydrometallurgical treatment facility in Rochester.

If the a final agreement is reached at the latest March 13, 2022, LG will also invest $50 million in Li-Cycle at a price of $11.32/per common share ($10.85 at closing today).

At the announcement, Li-Cycle also reveled that the company is expecting significantly larger volume of scrap materials than previously and has therefore increased the scope for their hydrometallurgical facility in Rochester, increasing the capacity from 25,000 to 35,000 tonnes of black mass annually. The expansion will take the total investment in the plant to $485M, something that can be funded from Li-Cycle's own balance sheet.