Li-Cycle Holdings Corp. (NYSE: LICY) confirmed that it has inked long-term commercial agreements with Glencore plc. As per the commercial agreements, Glencore will function as a crucial partner in the procurement of battery raw materials for Li-Cycle's spoke plants as well as black matter and sulfuric acid for Li-Cycle's hub plants.
Glencore will also complete the Company's existing partners through the offtake and marketing of Li-Cycle's battery-grade end products and certain by-products that are manufactured at the Company's spokes and hubs. This strategic partnership with Glencore will allow LICY to continue its shared vision of building sustainable and localized supply chains for battery metals for electrification.
Li-Cycle believed that Glencore's investment reinforced Li-Cycle's already strong balance sheet and further improve its ability to execute its current pipeline of spoke and hub assets. Glencore is of the view that to attain its goal of net-zero emissions by 2050, there is a need that the company will cooperate with other like-minded partners. The company is thrilled to collaborate with Li-Cycle as a key strategic partner in closing the loop for battery metals at scale, in localized supply chains, and with a sustainable footprint, effectively integrating primary and recycled raw materials.
Glencore has earned a reputation as a prominent supplier of primary metals for lithium-ion batteries and electric vehicles and is one of the world's top producers of cobalt and a top-three producer of Class I nickel. Li-Cycle, on the other hand, earned recognition as a leader in the recycling of lithium-ion Batteries that add value through its solid base of battery buyers and innovative 'Spoke & Hub' Technologies. Through this partnership, both the companies will integrate their complementary competencies that will help speed up the move towards a circular economy for key materials in the lithium-ion battery supply chain.