Li-Cycle launches global strategic partnership with VinES, a battery and cell pack manufacturer and a member company of Vingroup, the largest private conglomerate in Vietnam
Collaboration includes VinFast, a global electric vehicle manufacturer and Vingroup member company
Affirms Li-Cycle’s position as a leading recycling partner in the lithium-ion battery material supply chain
Li-Cycle Holdings Corp. (NYSE: LICY) (“Li-Cycle” or the “Company”), an industry leader in lithium-ion battery resource recovery and the leading lithium-ion battery recycler in North America, and Vines Energy Solutions (“VinES”), a Vingroup company that specializes in the research, development and manufacturing of advanced batteries for mobility and energy storage applications, are pleased to announce the launch of a global recycling partnership. Vingroup is the largest private conglomerate in Vietnam.
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Mr. Ajay Kochhar, co-founder and CEO, Li-Cycle and Ms. Pham Thuy Linh, CEO, VinES, at the signing ceremony between the two companies (Photo: Business Wire)
Under the new partnership, the companies are exploring global recycling solutions for VinES and VinFast, a global electric vehicle manufacturer that is also part of Vingroup. The new partnership is expected to support VinES and VinFast in their creation of a closed-loop battery supply chain to enhance their environmental goals and contribute to the global electrified revolution with green mobility solutions. It will also establish mutually beneficial global connections with all parties and strengthen Li-Cycle’s broad and diverse relationships with leading battery and electric vehicle (EV) manufacturers.
“We are thrilled to partner with Li-Cycle for recycling solutions for VinES and VinFast. We always aim to bring sustainable solutions and minimize the impacts of our business and operations on the environment for a greener future. The partnership with Li-Cycle is one important part of our ESG strategy to achieve sustainable and closed-loop battery production,” said Ms. Pham Thuy Linh, CEO of VinES.
“We are excited to partner with VinES, a company that is focused on advanced battery and energy solutions,” said Ajay Kochhar, co-founder and CEO of Li-Cycle. “We believe this partnership will be a significant step in our goal to be the leading and preferred global lithium-ion battery recycling partner and a launching pad to foster and deepen our commercial relationships with VinES and VinFast. We all share a vision to advance a sustainable, efficient and closed-loop battery supply chain.”
In addition to a significant manufacturing complex in Vietnam, VinFast has announced plans to build a large EV manufacturing facility in North Carolina in March 2022. VinFast was granted an incentive package of $1.2 billion from the State of North Carolina and expects to invest $2 billion to build the project’s first phase, which is designed to have capacity of producing 150,000 vehicles per year. VinES expects to continue to expand its current battery manufacturing capabilities in Vietnam and is exploring expansion into international markets.
Li-Cycle’s patented and sustainable lithium-ion battery recycling technologies, including its Spoke & Hub Technologies™, are an excellent fit in both scale and scope for VinES and VinFast’s current and planned manufacturing capabilities.
Li-Cycle’s Spoke & Hub network growth strategy continues to be underpinned and supported by accelerating commercial demand. The Company currently has four operational Spoke recycling facilities in North America with a total processing capacity of 30,000 tonnes per year, or the equivalent of batteries from approximately 60,000 EVs. Based on Li-Cycle’s current project pipeline, the Company expects to have a total of 65,000 tonnes per year of lithium-ion battery material processing capacity in North America and Europe as Li-Cycle continues to scale its Spoke & Hub network to support the recycling needs of a growing customer base.
Li-Cycle is also developing its first commercial Hub facility in Rochester, NY, which is expected to commence commissioning in calendar 2023 and designed to process battery materials equivalent to approximately 225,000 EVs. The Rochester Hub is expected to be the first commercial hydrometallurgical battery resource recovery facility and the first source of recycled battery-grade lithium carbonate production in North America.
VinES Energy Solutions specializes in the R&D and the manufacturing of advanced batteries for mobility and energy storage applications. VinES cooperates with many world-leading battery cell manufacturers and is investing in modern battery manufacturing plants in Vietnam. For more information, visit https://vines.net.vn/.
VinFast – a member of Vingroup – envisioned to drive the movement of global smart electric vehicle revolution. Established in 2017, VinFast owns a state-of-the-art automotive manufacturing complex with globally leading scalability that boasts up to 90% automation in Hai Phong, Vietnam.
Strongly committed to the mission for a sustainable future for everyone, VinFast constantly innovates to bring high-quality products, advanced smart services, seamless customer experiences, and pricing strategy for all to inspire global customers to jointly create a future of smart mobility and a sustainable planet. Learn more at: https://vinfastauto.com.
About Li-Cycle Holdings Corp.
Li-Cycle (NYSE: LICY) is on a mission to leverage its innovative Spoke & Hub Technologies™ to provide a customer-centric, end-of-life solution for lithium-ion batteries, while creating a secondary supply of critical battery materials. Lithium-ion rechargeable batteries are increasingly powering our world in automotive, energy storage, consumer electronics, and other industrial and household applications. The world needs improved technology and supply chain innovations to better manage battery manufacturing waste and end-of-life batteries and to meet the rapidly growing demand for critical and scarce battery-grade raw materials through a closed-loop solution. For more information, visit https://li-cycle.com/.
Forward Looking Information Disclaimer
Certain statements contained in this press release may be considered “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, Section 27A of the U.S. Securities Act of 1933, as amended, Section 21 of the U.S. Securities Exchange Act of 1934, as amended, and applicable Canadian securities laws. Forward-looking statements may generally be identified by the use of words such as “believe”, “may”, “will”, “continue”, “anticipate”, “intend”, “expect”, “should”, “would”, “could”, “plan”, “potential”, “future”, “target” or other similar expressions that predict or indicate future events or trends or that are not statements of historical matters, although not all forward-looking statements contain such identifying words. Forward-looking statements in this press release include but are not limited to statements about: expectations that Li-Cycle’s partnership with VinES and VinFast will affirm Li-Cycle’s position as a leading recycling partner in the lithium-ion battery material supply chain; expectations that Li-Cycle’s partnership will support VinES’ and VinFast’s creation of a closed-loop battery supply chain, enhance their environmental goals and contribute to the global electrified revolution with green mobility solutions; expectations that the partnership will support VinES’ and VinFast’s creation of a closed-loop battery supply chain, enhance their environmental goals and contribute to the global electrified revolution with green mobility solutions; expectations that the partnership will lead to mutually beneficial global connections; expectations that the partnership will strengthen Li-Cycle’s relationships with leading battery and electric vehicle manufacturers; expectations that the partnership will be a significant step in Li-Cycle’s goal to be the leading and preferred global lithium-ion battery recycling partner and that the partnership will be a launching pad to foster and deepen Li-Cycle’s relationships with VinES and VinFast; expectations that VinEs will continue to expand its current battery manufacturing capabilities in Vietnam;; expectations regarding the amount VinFast will invest to build the first phase of its North Carolina project; the expectation regarding the design capacity of VinFast’s planned EV manufacturing facility in North Carolina; expectations that commercial demand will continue to accelerate and underpin and support Li-Cycle’s Spoke & Hub network growth strategy; expectations that Li-Cycle will continue to scale its Spoke & Hub network; expectations that the Spoke & Hub network’s customer base will continue to grow; the expected future total lithium-ion battery material processing capacity of the Company’s North American and European Spoke facilities; the expected battery material processing capacity at the Rochester Hub; the expected timing of the Rochester Hub’s commissioning; expectations that the Hub will be the first commercial hydrometallurgical battery resource recovery facility and the first source of recycled battery-grade lithium carbonate production in North America; expectations that lithium-ion batteries will increasingly power the world in automotive, energy storage, consumer electronics, and other industrial and household applications; and expectations that demand will grow rapidly for critical and scarce battery-grade materials through a closed-loop solution. These statements are based on various assumptions, whether or not identified in this communication, made by Li-Cycle management, including but not limited to assumptions regarding the benefits of Li-Cycle’s non-binding partnership with VinES and VinFast and potential future commercial opportunities; the timing, scope and cost of Li-Cycle’s projects; the processing capacity and production of Li-Cycle’s facilities; Li-Cycle’s ability to source feedstock and manage supply chain risk; Li-Cycle’s ability to increase recycling capacity and efficiency; Li-Cycle’s ability to obtain financing on acceptable terms; Li-Cycle’s ability to retain and hire key personnel and maintain relationships with customers, suppliers and other business partners; general economic conditions; currency exchange and interest rates; compensation costs; and inflation. There can be no assurance that such assumptions will prove to be correct and, as a result, actual results or events may differ materially from expectations expressed in or implied by the forward-looking statements.
Forward-looking statements involve inherent risks and uncertainties, most of which are difficult to predict and many of which are beyond the control of Li-Cycle, and which may cause actual results to differ materially from the forward-looking information. Li-Cycle believes that these risks and uncertainties are related (but not limited) to the following: Li-Cycle’s inability to economically and efficiently source, recover and recycle lithium-ion batteries and lithium-ion battery manufacturing scrap, as well as third party black mass, and to meet the market demand for an environmentally sound, closed-loop solution for manufacturing waste and end-of-life lithium-ion batteries; Li-Cycle’s inability to successfully implement its global growth strategy, on a timely basis or at all; Li-Cycle’s inability to manage future global growth effectively; Li-Cycle’s inability to develop the Rochester Hub, Arizona Spoke, Alabama Spoke and other future projects including its Ohio, Norway and Germany Spoke projects in a timely manner or on budget or that those projects will not meet expectations with respect to their productivity or the specifications of their end products; Li-Cycle’s failure to materially increase recycling capacity and efficiency; Li-Cycle may engage in strategic transactions, including acquisitions, that could disrupt its business, cause dilution to its shareholders, reduce its financial resources, result in incurrence of debt, or prove not to be successful; one or more of Li-Cycle’s current or future facilities becoming inoperative, capacity constrained or if its operations are disrupted; additional funds required to meet Li-Cycle’s capital requirements in the future not being available to Li-Cycle on commercially reasonable terms or at all when it needs them; Li-Cycle expects to incur significant expenses and may not achieve or sustain profitability; problems with the handling of lithium-ion battery cells that result in less usage of lithium-ion batteries or affect Li-Cycle’s operations; Li-Cycle’s inability to maintain and increase feedstock supply commitments as well as securing new customers and off-take agreements; a decline in the adoption rate of EVs, or a decline in the support by governments for “green” energy technologies; decreases in benchmark prices for the metals contained in Li-Cycle’s products; changes in the volume or composition of feedstock materials processed at Li-Cycle’s facilities; the development of an alternative chemical make-up of lithium-ion batteries or battery alternatives; Li-Cycle’s revenues for the Rochester Hub are derived significantly from a single customer; Li-Cycle’s insurance may not cover all liabilities and damages; Li-Cycle’s heavy reliance on the experience and expertise of its management; Li-Cycle’s reliance on third-party consultants for its regulatory compliance; Li-Cycle’s inability to complete its recycling processes as quickly as customers may require; Li-Cycle’s inability to compete successfully; increases in income tax rates, changes in income tax laws or disagreements with tax authorities; significant variance in Li-Cycle’s operating and financial results from period to period due to fluctuations in its operating costs and other factors; fluctuations in foreign currency exchange rates which could result in declines in reported sales and net earnings; unfavourable economic conditions, such as consequences of the global COVID-19 pandemic; natural disasters, unusually adverse weather, epidemic or pandemic outbreaks, cyber incidents, boycotts and geo-political events; failure to protect or enforce Li-Cycle’s intellectual property; Li-Cycle may be subject to intellectual property rights claims by third parties; Li-Cycle’s failure to effectively remediate the material weaknesses in its internal control over financial reporting that it has identified or if it fails to develop and maintain a proper and effective internal control over financial reporting.
These and other risks and uncertainties related to Li-Cycle’s business and the assumptions on which the forward-looking information is based are described in greater detail in the sections entitled "Risk Factors" and “Key Factors Affecting Li-Cycle’s Performance” in its Annual Report on Form 20-F filed with the U.S. Securities and Exchange Commission and the Ontario Securities Commission in Canada on January 31, 2022.
Li-Cycle assumes no obligation to update or revise any forward-looking statements, except as required by applicable laws. These forward-looking statements should not be relied upon as representing Li-Cycle’s assessments as of any date subsequent to the date of this press release.