Li-Cycle Weighs Acquisition Offer from Glencore

Glencore

Canadian battery recycler Li-Cycle is considering a takeover offer from Glencore amid financial distress and project delays.

Financial Pressure Mounts on Li-Cycle

Li-Cycle is reviewing a 14 March acquisition proposal from Glencore, a major mining and trading firm. Glencore already holds a strategic stake in Li-Cycle and may move to take full control.

The announcement came as Li-Cycle warned in its 2024 annual report that it may run out of cash within a year. The firm’s liquidity crisis has worsened due to delays in accessing funding and paused construction projects.

In 2023, the company halted its Rochester hub project, critical to its spoke-and-hub recycling model. The stoppage disqualifies it from drawing a $475 million loan from the U.S. Department of Energy.

Projects Paused, Shares Delisted, Outlook Uncertain

Trading of Li-Cycle shares was suspended by the New York Stock Exchange in early 2024.

The de-listing reflects growing concerns about its operational viability.

Li-Cycle’s 2024 net loss reached $137.7 million, with revenues rising modestly to $28 million. Cash reserves fell by nearly $50 million, leaving only $31.9 million in liquidity at year-end.

The company has also paused development at its New York and Norway spoke facilities, limiting its future throughput. Its spoke-and-hub model, once touted as the future of lithium-ion battery recycling, now hangs in the balance.

The Metalnomist Commentary

Glencore’s interest in acquiring Li-Cycle may offer a lifeline—if terms can be agreed quickly. However, the deal also reflects broader challenges in scaling battery recycling under current market economics. If successful, this acquisition could strengthen Glencore’s position in the critical battery materials supply chain.