Canadian battery recycling specialist Li-Cycle has been acknowledged by two primary companies such as LG Chem and LG Energy Solutions as their lithium-ion battery recycling partner for the North American market. Agreement have been signed with LG Energy Solution for the supply of manufacturing scrap for recycling and with each of LG Energy Solution (LGES) and LG Chem (LGC) for the sale of nickel sulphate from Li-Cycle’s Rochester Hub.
Li-Cycle to enhance its recycling capabilities
Li-Cycle, LGC, and LGES have entered into these strategic arrangements to help support the growing global market demand for lithium-ion batteries and their critical materials. The partnership will enable a closed-loop ecosystem for LGC and LGES for key materials in the lithium-ion battery supply chain and will provide further capital to Li-Cycle for its continued global expansion.
«We’re thrilled to advance our collaboration with LGC and LGES, two global industry leaders in the EV supply chain», said Ajay Kochhar, co-founder and Chief Executive Officer of Li-Cycle. «Together, we are driving sustainable global electrification through the creation of this milestone closed-loop ecosystem in the lithium-ion battery supply chain».
The role of nickel
Through a North America Scrap 10-year Offer Agreement, Li-Cycle will have the opportunity to recycle nickel-bearing lithium-ion battery scrap and other lithium-ion battery material from LGES’s North America manufacturing sites. Additionally, under 10-year Nickel Sulphate Off-Take Agreements with each of LGC and LGES, Li-Cycle will sell a combined initial allocation of 20,000 tonnes of nickel contained in nickel sulphate produced at Li-Cycle’s Hub facility currently under construction in Rochester, New York to LGC and LGES, through its off-take partner, Traxys North America LLC. Li-Cycle estimates that the nickel sulphate to be sold to LGC and LGES under these arrangements will be enough to produce lithium-ion batteries that can power approximately 300,000 high-performing EVs.