Dive Brief:
- Battery recycler Li-Cycle announced Monday that it received a $375 million loan from the Department of Energy to fund development of a metal recovery facility near Rochester, New York.
- The new Rochester facility is expected to become a significant domestic source of battery materials such as lithium, nickel and cobalt, supporting an estimated 203,000 EVs annually, according to an Energy Department news release.
- The loan is the first awarded to a pure-play battery materials recycling company under the department’s Advanced Technology Vehicles Manufacturing program, and is set to close in Q2 2023.
Dive Insight:
The Li-Cycle loan marks the fifth critical materials and EV supply chain project announced under the ATVM program within the past year, according to the release. The program provides loans to support U.S. manufacturing of fuel-efficient vehicles and related components.
With an estimated $50 billion left to lend through the program, the department said it is working to boost the domestic battery materials supply chain.
“$375 million will now supercharge Li-Cycle here in Rochester, with 270 good-paying jobs, to become one of America’s largest suppliers of recycled materials for batteries,” Sen. Chuck Schumer said in a statement. “Once the facility is at full steam, it is projected to be the biggest source of lithium carbonate in the United States.”
Li-Cycle aims for its Rochester project to meet its high production rates sustainably. The company is developing the first commercial hydrometallurgical recycling facility, according to the release. The process will recover battery-grade critical metals with high efficiency, and less energy use, operational costs and emissions.
The battery recycler has already secured several supply agreements for recycled lithium-ion battery feedsock throughout North America. Last year, Li-Cycle partnered with Ultium Cells, a joint venture between General Motors and its battery maker, to recycle up to 100% of material scrap from its Ohio plant.
