Li-Cycle Holdings and Glencore International Signs LoI to Construct European Recycling Hub

Li-Cycle Holdings Corp. and Glencore International AG, a wholly-owned subsidiary of Glencore plc has signed a letter of intent to jointly study the feasibility and subsequent construction of a hub in Portovesme, Italy (the Portovesme Hub). The Portovesme hub is expected to produce critical battery materials including nickel, cobalt and lithium from recycled batteries.

The Portovesme hub will take advantage of Li-Cycle's hydrometallurgical technology and is expected to be the largest producer of sustainable battery-grade products in Europe.

Li-Cycle and Glencore will jointly undertake a Definitive Feasibility Study (DFS) for this project within 60 days of this announcement. 

The DFS is expected to be completed by mid-2024. Subject to a final investment decision by the parties, the project will move into the construction phase, with the Portovesme hub expected to come into service between the end of 2026 and the start of 2027.

Li-Cycle and Glencore also plan to form a 50/50 joint venture that would reuse part of the existing Glencore metallurgical complex in Portovesme, Italy, to create the Portovesme hub. 

This would allow for a profitable and accelerated development plan. The project also includes competitive long-term funding from Glencore to fund Li-Cycle's share of the capital investment.

Tim Johnston, Co-Founder and Executive Chairman, Li-Cycle: “ The Portovesme hub is a historic project for the European battery recycling industry and is expected to be the largest source of recycled battery-grade lithium on the continent. We are excited to expand our global strategic partnership with Glencore and leverage learnings from the Rochester hub to support the rapid growth of the lithium-ion battery ecosystem with an environmentally responsible approach". 

Kunal Sinha, Global Head of Recycling, Glencore: “Combined with our presence in the primary supply and recycling of battery metals, this project supports our ambition to become the leading circularity partner for the European battery and electric vehicle industry. It also marks an important milestone in our collaboration with Li-Cycle, a preferred partner in the lithium-ion battery recycling ecosystem".