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Li-Cycle and Glencore Have A New Offtake Deal

November 5, 2024
x min read
Li-Cycle Glencore Cobalt Battery Offtake

One of the giants of the commodities business is launching a new deal with Li-Cycle. But, why?

What’s happening:

  • Li-Cycle (NASDAQ: LICY) has announced a new offtake agreement with commodities conglomerate Glencore for mixed hydroxide precipitate being produced at their Rochester Hub facility

Why it matters:

  • Mixed hydroxide precipitate is a highly important chemical compound for producing nickel and cobalt sulphates for lithium-ion battery manufacturing
  • The new offtake deal from Glencore is happening alongside of Li-Cycle’s efforts to finalize a multi hundred million dollar loan from the United States Department of Energy for advancing their domestic battery material recycling operations

By the numbers:

  • Li-Cycle expects that their Rochester Hub facility will produce 8,250 tonnes of lithium carbonate annually and 72,000 tonnes of mixed hydroxide precipitate annually
  • Glencore will purchase 100% of all the mixed hydroxide precipitate that is produced by Li-Cycle’s Rochester Hub as part of their new offtake deal

Going deeper:

  • Glencore is also an early strategic investor in Li-Cycle and has injected fresh capital into the company multiple times since Li-Cycle initially went public

The fine print:

  • Li-Cycle’s share price is down dramatically from their initial debut on the public markets through a SPAC transaction which was valued at more than a billion dollars and has also faced a multitude of challenges in both scaling up their operations as well as raising growth capital

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