The lithium-ion battery recycling leader and diversified natural resources giant have struck a global feedstock supply agreement for manufacturing scrap and end-of-life lithium-ion batteries.

The battery-supply chain partnerships keep on coming thick and fast for both Li-Cycle and Glencore.  This deal is a global feedstock supply agreement under which Glencore will supply all types of manufacturing scrap and end-of-life lithium-ion batteries to Li-Cycle. The partners have also entered into a non-binding term sheet for global, long-term strategic contracts, which would complement Li-Cycle’s existing off-take and marketing agreements, including supply of black mass and sulphuric acid to Li-Cycle, and off-take of black mass, battery-grade end products and by-products from the company.  Upon execution of the commercial agreements, Glencore will make a US$200M investment in Li-Cycle and have the right to nominate one board member. Li-Cycle has agreed to nominate Kunal Sinha, Glencore’s Head of Recycling.

This is the latest in a series of deals for Li-Cycle since its August 2021 NYSE listing, as it looks to develop 20 commercial “spokes” (units deployed close to concentrations of Li-ion battery supply) and four “hubs” (which process output from multiple spokes) by 2025.  The company has recently received investment from LG Chem, LG Energy Solution, and an affiliate of Koch Strategic Platforms. 

Meanwhile, Glencore has been very active in terms of striking cobalt supply agreements with downstream players.  Since 2019, publicised deals include those with cobalt refiners Umicore and GEM; battery companies Britishvolt, FREYR, Samsung SDI, and SK Innovation; and automotive OEMs BMW and GM.