• Li-Cycle reported revenue of USD 5.9 million for the two-month transition period ending December 31, 2022, up 2.1x the revenue during the same period last year, due to increased black mass production and sales related to the ramp-up of operations at the spokes.

• Despite strong revenue growth, the company’s adjusted EBITDA loss was USD 17.8 million, 2.1x the loss in the same period of 2021. This was primarily due to the higher expenses in support of the company’s expansion of the global spoke operations and the build-out of the Rochester hub. 

• Li-Cycle’s net income was USD 1.7 million, compared to USD 3.9 million in the same period in 2021. The positive net income was after accounting for fair value gains on financial instruments of USD 21.4 million for the period.

Key operational highlights:

• The Rochester hub : On schedule to begin commissioning in late 2023, and construction costs for the project are trending toward the higher end of the previously disclosed budget range of USD 486 million–560 million, with an expected investment of USD 250 million–300 million in 2023.

• Spoke Network: Plans to invest USD 35 million–45 million in 2023 to expand its Spoke network. The company has announced the development of a third-generation Spoke facility in Ontario with a mainline recycling capacity of 10,000 tons of battery material input per year. Li-Cycle's Germany Spoke is also set to begin operations in mid-2023, while a new Spoke facility in France, underpinned by commercial demand including its long-term arrangement with the KION Group , is expected to start operations in 2024. Construction is ongoing for Li-Cycle's Norway Spoke, with completion expected by late 2023.

• DOE Financing and capital expenditure: Secured a conditional commitment with the DOE for a loan of up to USD 375 million in February 2023 to support the development of the Rochester Hub. The company’s capital expenditure during the transition period was USD 21.5 million, primarily for equipment and construction materials for the Rochester Hub and upgrades to the spoke network.