Li-Cycle Holdings Corp., a Toronto-based lithium-ion battery recycler, announced that it has formed a joint venture with Eco Stor AS, Oslo, Norway, and Morrow Batteries AS, Arendal, Norway, in which Li-Cycle will be the majority owner. Thanks to this partnership, Li Cycle announces that it will build a new commercial lithium-ion battery recycling facility in southern Norway, the company’s first recycling facility outside of North America.
According to the Norwegian Automobile Federation, Norway has made the adoption of electric vehicles (EVs) a priority and is on track to phase out sales of new internal combustion engine vehicles by April, or three years ahead of the 2025 target proposed by the Norwegian government. This is expected to result in a long-term supply of end-of-life batteries, and Li-Cycle says it will be well positioned to recycle and bring end-of-life batteries back into the lithium-ion battery. . Supply Chain.
Battery manufacturing capacity is increasing in Norway, notably with the construction of Morrow’s gigantic large-scale battery factory, which the company says will be operational next year and will be able to supply batteries for more than 700,000 electric vehicles a year. Manufacturing scrap generated by the facility will provide Li-Cycle with additional supply.
“This is an important milestone for Li-Cycle as we roll out our proven lithium-ion battery resource recovery solution to the European market and execute our global growth strategy with key industry partners” , says Ajay Kochhar, President, CEO and Co-Founder. of Li-Cycle. “Norway’s early leadership in the adoption and ecosystem of electric vehicles is a beacon for electrification globally, creating a robust market for battery manufacturing waste and end-of-life batteries in the world. National level.”
The Norwegian facility is expected to be fully operational early next year and have the capacity to process up to 10,000 tonnes of lithium-ion batteries per year, including battery manufacturing waste, complete EV packs and energy storage systems. According to a press release, the initiative brings Li-Cycle’s planned total global recycling capacity, including existing and under development, to 40,000 tons of lithium-ion batteries per year.
The announcement follows a series of investments and expansions for Li-Cycle over the past year. In September 2021, the company announced a $100 million investment from Koch Strategic Platforms (KSP), a Wichita, Kansas-based subsidiary of Koch Investments Group. The investment was “designed to support Li-Cycle’s growth opportunities in North America, Europe and Asia,” the company said at the time of the announcement.
Following this announcement, in December 2021, Li-Cycle said it was continuing construction to increase processing capacity at its shopping center in Rochester, New York, by more than 40%, and said construction would likely be completed by next year, requiring a total capital investment of approximately $485 million. In the same month, it also entered into a non-binding letter of intent with LG Chem (LGC) and LG Energy Solution (LGES) to supply companies with 20,000 metric tons of nickel from the New York facility. LGC and LGES will partner for a $50 million equity investment in Li-Cycle upon completion of the commercial agreements.
To support the execution of the Norway spoke facility, Koch Engineered Solutions (KES) has been engaged to build, test and ship the modular spoke facility – and the result of KSP’s previously announced investment.
“Advancing Innovation in Battery Recycling [and] recovery space adds direct, long-term value to our partners and helps ensure a sustainable future battery ecosystem,” said Brian Boster, President of Optimized Process Designs, Engineering, Sourcing and Build Capability at KES. .
EcoStore will supply the joint venture with end-of-life lithium-ion batteries and tomorrow will supply lithium-ion battery manufacturing waste from its facilities in Norway. In turn, Li-Cycle will provide the equipment, technology, technical services and operational management of the ray facility, while having the right to acquire 100% of the facility’s black mass production.
A site has yet to be finalized and construction remains subject to receipt of all necessary Norwegian regulatory approvals.