Li-Cycle Receives $375M Loan to Build NA Battery Resource Recovery Facility

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Li-Cycle Holdings Corp., an industry leader in lithium-ion battery resource recovery and the leading lithium-ion battery recycler in North America, has announced that Li-Cycle and the US Department of Energy Loan Programs Office, through its Advanced Technology Vehicles Manufacturing program, have entered into a conditional commitment for a $375 million loan.

The conditional commitment follows extensive DOE technical, market, financial,  Special Data and legal due diligence and marks another milestone in Li-Cycle’s development of the first commercial hydrometallurgical resource recovery facility in North America, located near Rochester, New York. This is the first conditional commitment from the DOE ATVM program for a sustainable pure-play battery materials recycling company, and the program’s main support for the lithium-ion battery recycling industry.

The Rochester Hub is expected to become a significant domestic source of battery-grade materials, including lithium, nickel, and cobalt, and will be one of the first-of-its-kind commercial facilities in North America. Receiving the conditional commitment is a significant step in the lending process and reflects the DOE’s intent to finance the project; however, the Loan remains subject to the documentation of long-form agreements, and certain conditions will have to be satisfied prior to closing, which is currently expected to occur in calendar Q2 2023. The Loan will have a term of up to 12 years from financial close, and interest on the Loan will be the 10-year US Treasury Rates from the date of each advance for the Loan.




Lithium-ion batteries have become a key contributor to the world’s energy transition and critical in the effort to slow climate change. As a result, battery manufacturing technologies and techniques are constantly evolving as producers look to remain competitive, increase storage capacity, and improve efficiency while decreasing battery size and weight. For instance, some producers are turning to a silicone-based anode material to increase battery output and reduce cost; others are exploring mining lithium from seawater to alleviate supply issues. When combined with an unprecedented increase in demand and subsequent production increases, it is fair to say that manufacturers are in a constant state of change. And it is not slowing down: Some experts estimate the lithium-ion battery market alone will expand 18% by 2030.