London-listed commodity giant Glencore plans to acquire Canadian battery recycling company Li-Cycle to strengthen its position in the growing market of sustainable battery disposal. The move aims to address operational and financial challenges. Glencore holds convertible debt in Li-Cycle, equivalent to approximately 84 million shares. Additionally, Li-Cycle’s limited duration shareholder rights plan was revised in 2024, allowing Glencore Canada to acquire more than 20 percent of the company.
Market capitalization of more than ten million dollars
With a current market capitalization of 10.45 million US dollars, according to LSEG data, Li-Cycle is one of the leading companies in battery recycling. Its board has formed a special committee to evaluate Glencore’s acquisition offer. Li-Cycle operates a network of recycling facilities in Arizona, Alabama, and Ontario, producing so-called black mass from shredded batteries. A planned facility in Rochester, New York, is set to process the black mass into lithium and other critical metals – a unique initiative in North America that could play a key role in the circular economy for battery materials.
Government support as a growth catalyst for Li-Cycle
To support its technological development and expansion, the U.S. Department of Energy approved a 475-million-dollar loan for Li-Cycle in November 2024. This financial aid serves as a critical lifeline to address cost overruns and technical issues. If Glencore’s acquisition materializes, it could accelerate the scaling of recycling capabilities and improve raw material supply for the global battery market.
