Koch Strategic Platforms (KSP), a subsidiary of Koch Investments Group, will invest $100 million in lithium-ion battery recycler Li-Cycle (earlier post) through purchase of a convertible note to support the company’s rapidly expanding growth opportunities in North America, Europe and Asia.
In addition to the new capital, Li-Cycle, along with several Koch Industries subsidiaries, is exploring opportunities to accelerate Li-Cycle’s global growth strategies. This includes potentially working with Koch Engineered Solutions (KES) which provides engineering, procurement, and construction services, as well as the Optimized Process Designs group (OPD), a capability of KES, which provides detailed engineering packages, single point procurement for all equipment and materials, fabrication, and construction services.
Li-Cycle and KES are exploring commercial opportunities to support the global deployment of incremental Spoke facilities and to enhance execution and operational readiness for the company’s Rochester Hub.
With the pace of deployment of new battery mega-factories far exceeding initial expectations, Li-Cycle recognizes the need to accelerate its roll-out of Spoke & Hub capacity to capture the growing market opportunity.
Li-Cycle’s total addressable market (TAM) estimate for the quantity of lithium-ion batteries available for recycling globally in 2025 has accelerated significantly in just the past five months. Estimates of the TAM in 2025 in North America, Europe and China have all increased by at least 50%, based on sources that include Benchmark Mineral Intelligence, as well as Li-Cycle market intelligence and forecasting.
Among the key drivers of this growth are new battery mega-factory announcements exceeding original expectations. This drives additional battery manufacturing scrap available for recycling, in lockstep with battery manufacturing. The incremental capital being raised from KSP will be directed towards the accelerated expansion of Li-Cycle’s battery recycling footprint, both in North America and internationally.