United States – Li-Cycle Holdings has signed a letter of intent with LG Chem and LG Energy Solution to supply manufacturing scrap and off-take nickel sulphate.
Following the execution of the definitive commercial agreement relating to the proposed supply and off-take arrangements, LGC and LGES will invest $50 million in Li-Cycle common shares under the terms of definitive subscription agreements.
Following the execution of the definitive agreement, Li-Cycle will sell 20,000 tonnes of nickel contained in nickel sulphate produced by Li-Cycle to LGC and LGES over a 10-year period, beginning in 2023, through its end-product off-take partner for the Rochester Hub, Traxys North America. Furthermore, LGES and Li-Cycle intend to collaborate on the recycling of nickel-bearing lithium-ion battery scrap and certain other lithium-ion battery materials in order to create a closed loop ecosystem. Nickel is required for the manufacture of many types of EV batteries. According to Li-Cycle, the amount of nickel that LGC and LGES intend to obtain from Li-Cycle will be sufficient to produce lithium-ion batteries capable of powering approximately 300,000 high-performance EVs.