Li-Cycle, a Canadian lithium-ion battery producer and recycler, and Glencore International, a wholly-owned subsidiary of metals and mining firm Glencore, have signed a letter of intent to explore the feasibility of developing a hub facility in Portovesme, Italy, that would produce critical battery materials such as nickel, cobalt, and lithium from recycled battery content. 

The two companies will jointly conduct a definitive feasibility study for the Portovesme Hub project within 60 days of the announcement. The study is expected to be completed by mid-2024, and if a final investment decision is made, construction of the facility will commence, with commissioning expected to begin in late 2026 or early 2027. 

The Portovesme Hub would be powered by Li-Cycle's hydrometallurgical technology and is expected to become Europe's largest producer of sustainable battery-grade products. Once operational, the hub is expected to process 50,000 to 70,000 tons of black mass (~36 GWh of lithium-ion batteries) annually.

The two companies also plan to establish a 50/50 joint venture to repurpose part of Glencore's existing metallurgical complex in Portovesme, Italy, for the development of the Portovesme Hub. The project also contemplates competitive long-term financing from Glencore to fund Li-Cycle's share of the capital investment.

Analyst QuickTake: Li-Cycle has maintained close ties with Glencore with the latter supporting Li-Cycle’s expansion plans. This partnership follows a USD 200 million investment from Glencore and a supply deal announced in May 2022. As part of the deal, Glencore agreed to supply Li-Cycle with black mass and battery waste and committed to purchasing some of Li-Cycle's recycled and recovered metals. Apart from its partnership with Glencore, Li-Cycle is also establishing several other recycling facilities in Europe, including in Germany's Magdeburg region, which is the company’s first battery recycling facility in Europe.