Battery recycler Li-Cycle more than doubled revenue quarter over quarter


Lithium-ion battery recycling specialist Li-Cycle reported revenue of US$8.7 million for the quarter ended April 30, 2022, more than double the previous quarter.

Li-Cycle said the revenue growth – 29 times higher than the same quarter a year earlier – was due to higher product sales volume and metal prices. Its operating expenses rose to $30 million, six times the $5.6 million in the same period last year.

This resulted in a net loss of $20.7 million, up 165% year over year. The adjusted EBITDA loss amounted to US$19.5 million. Its fiscal year runs until October 31.

The company recycles lithium-ion batteries from electric vehicles and energy storage and its two-step process can achieve a recovery rate of 95%. It recently opened its third recycling facility, in Arizona, its third “Spoke” facility. Spoke facilities process battery waste and end-of-life batteries before sending the resulting black mass to a recycling center in New York, slated to come online in 2023, which will refine it into different critical materials that can then be used in the manufacture of lithium-ion batteries.

The company expects the Energy Storage Systems (ESS) sector to be a major contributor to both the supply of materials and also the removal of recycled materials produced by Li-Cycle.

During its most recent quarter, the company entered into long-term agreements with LG and Glencore to be their preferred lithium-ion battery recycling partner. The two companies will supply raw materials and waste to Li-Cycle’s hubs while Glencore will supply dark mass and sulfuric acid for its hub once opened. LG and Glencore will also have signed take-off agreements for some of Li-Cycle’s battery-grade products manufactured at the Rochester hub.

“We continued to successfully execute our Spoke & Hub network strategy, with significant operational, commercial and financial achievements this quarter,” Ajay Kochhar, President and CEO of Li-Cycle.

“Strategically, we are positioning Li-Cycle as a leading and preferred recycler and supplier of critical battery materials, capitalizing on significant secular growth trends.”

Li-Cycle, which went public on the New York Stock Exchange in August last year through a SPAC merger, ended its second quarter with $509.3 million in cash. This amounts to US$760 million on a pro forma basis, including investments totaling US$250 million from LG and Glencore under these agreements.

The company plans to open ray facilities in Europe – in Norway and Germany – in the first half of 2023 and expects by the end of this year to have an annual recycling capacity of 65,000 tonnes. Based on figures previously provided to by Kunal Phalpher, Li-Cycle CCO, that 65.00 tons is equivalent to approximately 13 GWh of battery material.


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