Lithium-ion battery recycling firm Li-Cycle has filed for Chapter 15 bankruptcy in the United States and creditor protection within Canada. The Canada-based company operated recycling plants in Arizona, Alabama and New York.
Li-Cycle largely focused on EV battery recycling but was beginning to accommodate stand-alone energy storage systems. According to its website, its processing facility in New York was curtailed, and construction on its hydrometallurgical recycling process hub in Rochester was not completed. In addition to the plants in Arizona and Alabama, Li-Cycle operated a plant in Germany and was looking at new locations in Italy and Norway.
Li-Cycle has entered into an equity and asset stalking horse agreement with Glencore Canada Corp., which is Li-Cycle’s largest secured creditor. Glencore has agreed to a bid of at least $40 million for Li-Cycle’s assets, including the U.S. and German operations and any intellectual property.
Li-Cycle’s Germany operations is expected to have sufficient working capital to continuing operating during these bankruptcy proceedings.
The company was announcing new recycling partnerships and investments as recently as three months ago.
