Dive Brief:
- Li-Cycle Holdings, a Toronto-based battery material recovery firm that obtained significant funding promises from the U.S. government, paused its $500 million battery hub in Rochester, New York, citing escalating construction costs.
- The recycler is conducting a comprehensive review of the go-forward strategy for the project, it said in an Oct. 23 news release. Engineering and procurement activities are complete, the firm said, and construction was underway at the time of the work freeze.
- Li-Cycle did not give a timeline for the review process, nor a date when construction would resume. The company is scheduled to report its third quarter earnings on Nov. 13, where a representative said Li-Cycle would reveal more details about the project and its plans.
Dive Insight:
Li-Cycle received a $375 million loan commitment from the Department of Energy through the Advanced Technology Vehicles Manufacturing program for the project, according to the release. The company said that it continues to work closely with the DOE in regards to the funding.
In addition, the project received funding promises from Monroe County, where Rochester is located, according to News10NBC. However, area Congressman Joe Morelle confirmed to the outlet that neither local or federal funding had disbursed at that point.
This facility is a part of a trend of delayed manufacturing projects.
In September, battery manufacturer American Battery Factory postponed construction on its $1.2 billion lithium phosphate battery factory in Tucson, Arizona, until November. This follows TSMC’s July announcement, where the company revealed it was pushing back the opening of its high-profile Arizona chip factory to 2025, citing labor issues.
