Li-Cycle Holdings entered into an agreement to issue a senior secured convertible note in an aggregate principal amount of $75 million to an affiliate of Glencore, a leading producer, recycler, and marketer of nickel and cobalt for the production of lithium-ion batteries.

This financing enhances Li-Cycle and Glencore’s existing long-term, strategic partnership and represents an interim step in our funding strategy to support Li-Cycle’s future plans. We also continue to work closely with the US Department of Energy on the conditional commitment for a loan of up to $375 million.

—Ajay Kochhar, Li-Cycle co-founder and CEO

As previously announced, Glencore has designated Li-Cycle as one of its preferred recycling partners, and Li-Cycle and Glencore entered into a strategic commercial partnership aimed to create an integrated platform to supply a global customer base with both primary and recycled critical battery materials.

As part of the partnership, Glencore previously made a $200-million investment in Li-Cycle in June 2022 through the purchase of a convertible note.

Glencore is a battery feedstock partner for Li-Cycle’s Spoke facilities, as well as a future supplier of both black mass and key reagents for Li-Cycle’s future Hub facilities. Glencore complements Li-Cycle’s existing partners through off-take and marketing of Li-Cycle’s end products and certain by-products produced and expected to be produced at certain of the company’s Spokes and Hubs.