Acquiring a fallen battery recycler, Glencore secures Li-Cycle’s assets as clean energy investments face political and financial headwinds.
European commodities giant Glencore has completed its $40 million acquisition of lithium-ion battery recycler Li-Cycle, following the company’s bankruptcy earlier this year. The purchase secures Glencore full control of Li-Cycle’s assets across North America and Europe, as part of its expanding presence in the global battery supply chain.
Li-Cycle, once considered a leader in US battery recycling, faced mounting financial issues due to cost overruns, particularly at its flagship Rochester, New York hub. The facility, initially expected to cost $560 million, ballooned to nearly $1 billion and never became operational. Despite receiving a conditional $475 million loan commitment from the US Department of Energy (DOE), Li-Cycle was unable to raise the equity needed to unlock the funds.
The company operated three “spoke” facilities in the US, one in Canada, and one in Germany, with a total capacity of 61,000 metric tons of battery material annually. Currently, only the German site in Magdeburg remains operational, while the others are idle. The bankruptcy left Li-Cycle with assets valued at $861.2 million and liabilities of $598.1 million.
Glencore had been a long-time financial partner of Li-Cycle and was its sole secured lender at the time of the bankruptcy. The two companies had previously signed multiple funding and supply agreements and collaborated on projects in both North America and Europe.
Li-Cycle’s collapse comes amid broader industry uncertainty, with several clean energy projects in the US slowing down under shifting federal policies. The company’s failure to attract new investors was attributed to its debt structure and concerns over future DOE funding
