LG Energy Solution

Reinforcing recycling, rerouting refuse, and reducing wasteflows

Waste Recovery & Management Tech

<div>
 
 Li-Cycle is a Canadian lithium-ion battery manufacturer and a recycler offering technology solutions to recycle end-of-life batteries. The company offers two proprietary technologies, one is its &ldquo;Mechanical Safe Size Reduction&rdquo; technology, which converts lithium-ion batteries into inert products with no solid or liquid waste, and the other is its &ldquo;Hydrometallurgical Processing&rdquo; technology that recovers and recycles battery-grade lithium, nickel, cobalt, and other materials. Li-Cycle claims that it has the potential to recover more than 95% of the constituent materials in lithium-ion batteries.&nbsp;
 
 
 As of April 2023, the company operates facilities in Ontario (5,500 tons of annual lithium-ion battery processing capacity); 
 <a href="https://sp-edge.com/updates/10541">
 Arizona
 </a>
 , (18,000 tons annual lithium-ion battery processing capacity); and 
 <a href="https://sp-edge.com/updates/13784">
 Alabama
 </a>
 (10,000 tons per year). Furthermore, the company also has four facilities under construction : 
 <a href="https://sp-edge.com/updates/15068">
 Rochester
 </a>
 (35,000 tons of black mass per year,), 
 <a href="https://sp-edge.com/updates/20634">
 Germany
 </a>
 (30,000 tons per year), 
 <a href="https://sp-edge.com/updates/8082">
 Norway
 </a>
 (10,000 tons per year, 2024) , and 
 <a href="https://sp-edge.com/updates/17331">
 France
 </a>
 (10,000 tons per year, 2024). Construction of the New York facility (18,000 tons of annual processing capacity) was paused in October 2023 pending a review of the project. The company has reached a total lithium-ion battery processing capacity of 51,000 tons per year across all four operating spokes in North America, and plans to reach a total of 81,000 tons per year across spokes in North America and Europe by the end of 2023.
 
 
 Key customers and partnerships
 
 
 
 <a href="https://sp-edge.com/updates/7351">
 In December 2021,
 </a>
 the company signed a non-binding letter of intent to receive nickel-bearing battery scraps from LG Energy Solutions (LGEC) and recycle them into nickel sulfate to supply to both LGEC and LG Chem Ltd (LGC). The supply would be able to power 300,000 high-performing electric vehicles. In addition to this, LGEC and LGC invested USD 25 million each in Li-Cycle. The investment is likely to support Li-Cycle in scaling battery production to keep up with the growing demand for lithium-ion batteries. Similarly, the company also secured USD 200 million in investment from metals and mining firm 
 <a href="https://sp-edge.com/updates/10201">
 Glencore
 </a>
 and also signed a supply deal with the latter.&nbsp;
 
 
 To enter Europe and build a plant in Norway, Li-Cycle formed a 
 <a href="https://sp-edge.com/updates/8082">
 joint venture (JV) 
 </a>
 with Eco Stor (European battery manufacturer and recycler) and Morrow Batteries (Norwegian battery manufacturer) in January 2022. During the same time, the company also extended its partnership with 
 <a href="https://sp-edge.com/updates/8104">
 Ultium Cells LLC
 </a>
 (a joint venture between General Motors and LG Energy Solution) to construct the Ohio lithium-ion battery recycling plant.&nbsp;
 
 
 In November 2022, the company forged a global partnership with VinES, a battery and cell pack manufacturer and a member company of Vingroup, the largest private conglomerate in Vietnam. As per the partnership companies will explore global recycling solutions for VinES and VinFast &ndash; a global electric vehicle manufacturer that is also part of Vingroup.&nbsp;
 
 
 The company also signed a definitive agreement with 
 <a href="https://sp-edge.com/updates/17331">
 KION Group
 </a>
 , a German multinational manufacturer of industrial trucks and supply chain solutions, to recycle lithium-ion batteries from KION&rsquo;s global brands using Li-Cycle&rsquo;s proprietary submerged shredding technology until 2030.
 
 
 
 
 
 Funding and financials
 
 
 The company started trading on the NYSE in August 2021, via a SPAC deal with Peridot raising USD 580 million in gross proceeds. The company reached a pro forma equity value of USD 1.55 billion following the SPAC deal.&nbsp;
 
 
 Li-Cycle reported a revenue of USD 5.9 million for the 
 <a href="https://sp-edge.com/updates/17492">
 two-month transition period
 </a>
 ending December 31, 2022, 2.1x higher the revenue for the same period in 2021. The company&rsquo;s adjusted EBITDA loss was USD 17.8 million, 2.1x the loss in the same period of 2021.
 
 
 In 
 <a href="https://sp-edge.com/updates/16688">
 February 2023
 </a>
 , Li-Cycle received a conditional commitment from the US Department of Energy Loan Programs Office for a USD 375 million loan to fund their first commercial hydrometallurgical resource recovery facility located near Rochester, New York.
 
</div>

Liontown Resources is a mineral exploration and development company that is focused on the development of high-quality lithium and tantalum projects, as well as an emerging gold, PGE, nickel, and copper project in Western Australia. The company's goal is to locate, develop, and supply battery minerals to the rapidly expanding Electric Vehicle and Energy Storage industries.

Sion Power is the global leader in the development of a new generation of high-energy, rechargeable lithium batteries for portable power, mobile electronics, and electric vehicles. Based on the five times higher energy available from sulfur ions compared to other lithium chemistries, Sion Power's lithium-sulfur cell offers significant improvements in performance over current rechargeable batteries.  Sion Power is advancing the rechargeable battery industry through its groundbreaking Licerion® technology. Licerion represents a sophisticated evolution in lithium-metal batteries, boasting twice the energy density within the same size and weight as traditional lithium-ion batteries. With an impressive energy density of up to 500 Wh/kg, Licerion batteries are manufactured at scale in large-format cells. This innovation holds the promise of substantially improving the performance of electric vehicles for both commercial and consumer use.

NOVONIX is a developer and supplier of high-performance materials and technologies enabling an electrified future for electric vehicles and grid energy storage. NOVONIX is a global provider of advanced battery testing equipment and services, with a focus on innovative battery research and development. In addition, the company produces synthetic graphite anode materials used in the production of lithium-ion batteries, which power electric vehicles, personal electronics, medical devices, and energy storage units.

Established in 2016, OnePredict is a leader in industrial AI (Artificial Intelligence) technology and 9 time winner of the 'Global PHM Data Challenge' for the best industrial AI based Machine Digitalization & Intelligence solutions. OnePredict provides advanced AI solutions, the GuardiOne® Series, Cells, Edge, and Cloud solutions. GuardiOne® specializes in industrial AI solutions such as bearings, turbines, wind (wind farm), transformers, robots, and motors, and is expanding to various other industries.

Li-Cycle is a clean technology company with revolutionary technology for resource recovery of end-of-life lithium-ion batteries. Li-Cycle Technology™ is a closed loop, economically viable, safe and sustainable process that can recover 80 – 100% of all materials in lithium-ion batteries. Li-Cycle is on a mission to provide sustainable and safe customer-centric solutions for end-of-lifecycle lithium-ion batteries while meeting the rapidly growing demand for critical batteries.

Greatpower Technology is a plant for nickel sulphate, a major ingredient for lithium-ion batteries used in electric vehicles.

LG Energy Solution provides a variety of energy solutions. They are actively developing new products and acquiring global battery production capacity to strengthen our position as the global leader in next-generation energy.

<div> LG Energy Solution (KRX: 373220) is a leading global manufacturer of lithium-ion batteries for electric vehicles, mobility, IT, and energy storage systems. Spun off from LG Chem in 2020, LG Energy Solution is headquartered in Seoul, South Korea and is the country's third most valuable company after Samsung Electronics and SK Hynix Inc. LG Energy Solution produces batteries for electric vehicles, energy storage systems, and mobile devices. Its EV battery customers include major automakers like Tesla, General Motors, Volkswagen, Honda, and Stellantis. The company offers various battery types including high-nickel NCMA, NCM, LFP, and cylindrical batteries. For energy storage, LG Energy Solution provides battery systems for grid-scale, commercial, industrial and residential applications. LG Energy Solution has been expanding its production capacity globally, particularly in North America. The company is building joint venture battery plants with automakers like General Motors, Honda and Stellantis in the US. In 2022, LG Energy Solution announced plans to invest USD 4.4 billion to construct a battery manufacturing facility in Ohio in partnership with Honda, aiming to start production by the end of 2025. The company is also investing in a standalone cylindrical battery plant in Arizona. Additionally, LG Energy Solution has set goals to achieve 100% renewable energy use at all its global production sites by 2025 and is expanding partnerships to secure raw material supplies for battery production. </div>

LG Energy Solution Partners with Bear Robotics for Battery Supply

LG Technology Ventures

LG Innovation Ventures

Electrifying passenger and commercial travel

EV Economy

Companies developing battery electric cars, SUVs, and pickup trucks

Companies developing commercial BEVs. Includes electric LCVs, trucks, buses, etc.

Companies developing Li-ion EV batteries and battery materials. Includes next-gen advancements in Li-ion batteries (e.g. fast charging batteries, graphite-anode substitutes)

Companies developing EV battery technologies that do not fall under the definition of Li-ion (e.g. solid-state batteries, lithium substitutes, etc.)

Companies offering software solutions to optimize the performance of EV batteries (e.g. charging optimization software, Digital Twin solutions, etc.)

Companies that facilitate EV charging. Includes both charging infrastructure providers and network operators. Also includes vehicle-to-grid technologies.

INCUMBENTS_PRESENT

PROMINENT_CATEGORY

<div>

Ultium Cells, a collaboration between LG Energy Solution and General Motors, has halted the building of an EV battery plant in the US.
The firms have opted to suspend the building of EV Battery Plant 3 in Michigan, which was set to begin operations in 2025, due to a decrease in global demand for EVs. The plant's start date has been delayed to 2025 or beyond, with only two of the five production lines being partially equipped.

</div>

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