Battery recycler Li-Cycle secures $475 million US loan
The loan to build a battery plant in Rochester is being seen as a move to bolster President Joe Biden’s domestic EV supply and climate agenda before Donald Trump assumes office in January.
The US government has finalized a USD 475 million loan for Li-Cycle Holdings, which will allow the metals recycler to build a battery processing plant in Rochester, New York, in line with President Joe Biden’s aim to boost the domestic EV supply chain.
The loan, USD 100 million higher than provisionally announced last year, will provide a financial lifeline to the company. The plant will be one of the largest US sources of the battery metal lithium.
The loan finalized by the Department of Energy (DOE) is also being seen as a move to bolster the outgoing Democrat president’s climate agenda before Donald Trump assumes office in January amid concerns that the Republican may be less enthusiastic about the transition to renewable energy, according to a Reuters report.
Biden officials have pushed to advance several key minerals projects in recent weeks.
Li-Cycle, a Toronto-based company, was struggling with cost overruns and technical issues and had hired a corporate restructuring expert, triggering questions about its survival, the Reuters report said. The loan will allow the company to seek private capital to fund the remainder of its USD 960 million project, due to come up near New York’s border with Ontario.
“Securing the DOE Loan Facility through our close collaboration with the DOE is a critical step toward our goal of restarting construction at the Rochester Hub project,” said Ajay Kochhar, Li-Cycle President and CEO. “We believe that the DOE Loan Facility offers attractive terms relative to other third-party financing alternatives available to us. We believe it will also enhance our financial flexibility and support our mission to create a sustainable, closed-loop battery supply chain, which is vital to the electrification transition and securing energy independence in North America.”
The Li-Cycle facility is expected to produce 8,250 metric tons of lithium carbonate per year along with 72,000 metric tons of mixed hydroxide precipitate (MHP)
“The loan demonstrates (the Energy Department’s) role in supporting a strong domestic EV battery and critical materials supply chain, which is critical to strengthening America’s national and energy security,” said Jigar Shah, head of the Energy Department’s Loan Program Office.
The Rochester hub is expected to create approximately 825 construction jobs at peak construction and more than 200 permanent jobs.
