U.S. DOE Approves $475 Million Loan for Li-Cycle

The U.S. Department of Energy (DOE) has finalized a $475 million loan to Li-Cycle Holdings to support the construction of a lithium-ion battery recycling facility in Rochester, New York, marking a significant step in the Biden administration's efforts to strengthen domestic electric vehicle supply chains. This loan, which consists of $445 million in principal and $30 million in capitalized interest, is crucial for Li-Cycle as it faces rising costs and a significant drop in stock value. Once operational, the facility is expected to process materials for up to 180,000 electric vehicles annually, reducing gasoline consumption by 71 million gallons and CO2 emissions by over 633,000 metric tons each year. The project is anticipated to create 825 construction jobs and over 200 permanent positions. Li-Cycle plans to aggregate end-of-life batteries and battery manufacturing scrap, converting them into a feedstock called 'black mass' for further processing. With this financial backing, Li-Cycle aims to raise the remaining funds needed to complete its $960 million project, ensuring its viability in the evolving energy landscape.