Li-Cycle Holdings, a Canadian lithium-ion battery producer and recycler, has secured a conditional commitment for a USD 375 million loan from the US Department of Energy Loan Programs Office through its Advanced Technology Vehicles Manufacturing program.

The commitment would support the development of Li-Cycle's first commercial hydrometallurgical resource recovery facility in the US, located near Rochester, New York, which is expected to commence commissioning by the end of 2023. The facility would create 270 new permanent jobs and more than 1,000 jobs during construction.

The loan is subject to finalizing long-form agreements and fulfilling specific requirements before closing, projected to occur in Q2 2023. The loan will have a term of up to 12 years from the financial close, with interest rates based on the 10-year US Treasury rates from the date of each loan advance.

The Rochester Hub will have a processing capacity of up to 35,000 tonnes of black mass per year and is expected to produce up to 8,500 tonnes of lithium carbonate, 48,000 tonnes of nickel sulfate, and 7,500 tonnes of cobalt sulfate per annum.

In 2022, the company obtained vital environmental permits and made significant progress on engineering and construction with Hatch and MasTec.