What’s Happening: Li-Cycle Holdings Corp. has received a conditional commitment for a $375 million loan from the U.S. Department of Energy (DOE) Loan Programs Office (LPO) under its Advanced Technology Vehicles Manufacturing (ATVM) program. The funding will support the development of the first commercial hydrometallurgical resource recovery facility in North America, located near Rochester, New York. The facility is expected to become a significant domestic source of battery-grade materials, including lithium, nickel, and cobalt.
Why It Matters: The conditional commitment marks a significant milestone in the development of the Rochester Hub and endorses Li-Cycle’s efforts to create a sustainable domestic supply chain of battery-grade materials in the U.S. The funding will also help to grow American jobs and reduce the country’s reliance on China for battery supply.
Key Points:
- Li-Cycle Holdings Corp. has received a conditional commitment for a $375 million loan from the U.S. Department of Energy (DOE) Loan Programs Office (LPO).
- The loan will support the development of the first commercial hydrometallurgical resource recovery facility in North America, located near Rochester, New York.
- The Rochester Hub is expected to become a significant domestic source of battery-grade materials, including lithium, nickel, and cobalt, and will be the first-of-its-kind commercial facility in North America.
- The loan is subject to documentation of long-form agreements and certain conditions that must 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 U.S. Treasury Rates from the date of each advance for the loan.
- The funding will help to create a sustainable domestic supply chain of battery-grade materials in the U.S. and to grow American jobs.
Bottom Line: Li-Cycle Holdings Corp. has received a conditional commitment for a $375 million loan from the U.S. Department of Energy (DOE) Loan Programs Office (LPO) to support the development of the first commercial hydrometallurgical resource recovery facility in North America. The funding will help to create a sustainable domestic supply chain of battery-grade materials in the U.S. and to grow American jobs.
