• Canadian lithium-ion battery producer and recycler Li-Cycle has secured USD 200 million in investment from metals and mining firm Glencore. Alongside the investment, Glencore also signed a supply deal with Li-Cycle.

• As per the supply partnership, Glencore will ship black mass, as well as spent batteries and battery scraps to Li-Cycle, which will recover high-demand metals from the scraps for reuse in electric vehicle batteries and other applications. In addition, Glencore has also reported it will supply Li-Cycle with sulfuric acid while agreeing to purchase some of Li-Cycle’s recycled and recovered metals. 

• Glencore's investment is in the form of a convertible note that could convert to equity at USD 9.95 per share (around a 38% premium to Li-Cycle’s closing price on Wednesday). Following the investment, Glencore will also secure a seat on Li-Cycle's board but has signed a standstill agreement, which restricts Glencore from acquiring Li-Cycle without the latter’s consent.  

• Li-Cycle is looking to use the investment to support building its recycling facilities across North America and for other corporate purposes.

<ul><li> Analyst Quicktake: Li-Cycle has been securing necessary supply as well as investment to support its target of building its Rochester Hub project by 2023 and reaching a production target of 42,000–48,000 metric tons of nickel sulfate per year and 6,500–7,500 metric tons of cobalt sulfate per year. In December 2021, Li-Cyle secured USD 50 million from LG and also signed a supply partnership for nickel sulfate with the latter. In September 2021, the company attracted USD 100 million through a convertible note from Koch Industries to support Li-Cycle’s expansion plans.</ul>