Li-Cycle Holdings entered into an agreement with Glencore covering the off-take of 100% of the mixed hydroxide precipitate (MHP) to be produced at Li-Cycle’s Rochester Hub. By amending and restating certain of its existing commercial agreements with Glencore and Traxys North America, Li-Cycle has established the commercial framework for the proposed MHP scope for the Rochester Hub project. Glencore and Traxys’ existing off-take rights covering lithium carbonate production from the Rochester Hub are not affected by these amendments.

Under the amended and restated commercial agreements, Glencore has agreed to purchase all of Li-Cycle’s MHP production at the Rochester Hub on agreed commercial terms based on market prices for the nickel and cobalt contained within the MHP. The parties have also agreed to extend the scope of the existing off-take agreements to cover material produced for Li-Cycle under tolling agreements with third parties.

Traxys will also receive certain payments related to the MHP production for the duration of the off-take agreement, which has been adjusted to take into account the proposed MHP scope for the Rochester Hub. The payment terms and working capital facilities under both the Traxys and Glencore commercial agreements have also been adjusted to align with the requirements of the proposed loan to Li-Cycle under the DOE’s Advanced Technology Vehicles Manufacturing program.

The revised Glencore commercial agreements were completed in parallel with the ongoing effort to finalize the DOE Loan.

Earlier this year, Li-Cycle confirmed the technical viability of the MHP scope through an internal study, advanced the go-forward execution plan for the Rochester Hub, and refined cost estimates with the local market to evaluate the project’s total cost estimate.

Li-Cycle expects to produce up to approximately 8,250 tonnes of battery-grade lithium carbonate and up to approximately 72,000 tonnes of MHP annually at the Rochester Hub under the MHP scope. The project’s nameplate processing capacity remains at 35,000 tonnes of black mass annually.

The proposed MHP scope is part of the changes to the Rochester Hub’s development strategy potentially to reduce the construction scope. The MHP process that is expected to be deployed at the project was proven in Li-Cycle’s large-scale pilot program, which was completed in 2019-2020, and is included in Li-Cycle’s patented technology portfolio.