Glencore investing $200 million in battery recycler Li-Cycle

div classBodysc17zpet90 cdBBJodivpReuters – Miner and commodity trader Glencore Plc said on Thursday it is investing 200 million in battery recycler LiCycle Holdings Corp as it looks to expand supply of battery metals for the electric vehicle EV industry.p

pRecycling is seen as a large potential new source of EV minerals, and governments and companies around the world are boosting efforts to turn old batteries into new ones. U.S. President Joe Bidens administration, for example, said this week it would set aside 3 billion in part to finance EV battery recycling. pdivdivdiv classBodysc17zpet90 cdBBJodiv

pSwitzerlandbased Glencore‘s investment will come in the form of a 200 million note that is convertible to equity at 9.95 per share, roughly 38 higher than LiCycle’s stock closing price on Wednesday.p

pGlencore will gain a seat on Torontobased LiCycles board and has agreed to a standstill agreement, which prohibits unsolicited takeover offers. p

pThe deal is set to close by July. LG Chem Ltd and privately held Koch Industries Inc are also investors in LiCycle.p

pThe deal announced on Thursday is the latest between a mining giant and recycler. In March, French mining group Eramet said it could develop jointly with Suez a recycling facility in France for EV batteries by 2024. p

pGlencore will supply LiCycle black mass – shredded batteries that can be processed to extract metals such as cobalt and nickel – as well as manufacturing scrap, giving LiCycle access to more feedstock to recycle. p

pRoughly 5 to 10 of the EV battery manufacturing process produces manufacturing waste. LiCycle is building several recycling facilities around North America. The Glencore investment will be used by LiCycle for those projects and other corporate purposes.p

pThe GlencoreLiCycle deal is part of a longterm agreement, though the companies did not specify the timeline. p

pGlencore has also agreed to supply LiCycle with sulfuric acid and will buy certain metals that are produced during LiCycles recycling process.p

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pp Reporting by Ernest Scheyder Editing by Muralikumar Anantharamanp

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