Li-Cycle receives million-dollar loan from US government
Battery recycling company Li-Cycle has received a conditional commitment from the US Department of Energy for a 375 million dollar loan. The money will be used for the Canadian company’s first US facility in Rochester, New York, USA.
Li-Cycle reprocesses battery materials at the plant. The Canadians’ concept is to carry out the mechanical processing of the batteries in so-called “Spokes” near potential partners, where it produces an intermediate product called black mass containing valuable metals. The “Spokes” are connected to the Hub. The hydrometallurgical processing into the reusable battery materials takes place at the “Hubs.” The only Hub so far is in Rochester in the USA.
The Hub could yield up to 8,500 tons of lithium carbonate, 48,000 tons of nickel sulfate and 7,500 tons of cobalt sulfate annually once fully operational. According to Li-Cycle, the Rochester Hub is “to be the first commercial hydrometallurgical resource recovery facility in North America.”
“The Rochester Hub is a cornerstone asset for Li-Cycle and its stakeholders and will be an important contributor to the clean energy economy,” says CEO Ajay Kochhar. “s a sustainable pure-play battery material recycling company, we expect the Rochester Hub will position Li-Cycle as a leading domestic producer of recycled battery-grade materials for accelerating electrification demand to address climate change and secure energy independence.”
Funds for the loan come from the Department of Energy’s (“DOE”) Advanced Technology Vehicles Manufacturing (“ATVM”) programme. However, to receive the loan, Li-Cycle must meet still unspecified conditions, which the company expects in Q2 2023. The loan will have a term of up to 12 years from financial close, and interest will be the 10-year US Treasury Rates from the date of each advance for the loan.
“375 million dollars will now supercharge Li-Cycle here in Rochester, with 270 good-paying jobs, to become one of America’s largest suppliers of recycled materials for batteries,” says Senator Charles Schumer. “This DOE investment in Li-Cycle will reduce our reliance on China and strengthen America’s battery supply chain. And once the facility is at full steam, it is projected to be the biggest source of lithium carbonate in the United States. That means the heart of hundreds of thousands of electric vehicles, which will soon dominate our roads, will be made with battery components from right here in Rochester.”
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