Li-Cycle Pauses Rochester Hub Project, Stock Plummets 48%

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Following the announcement of the project suspension, Li-Cycle’s stock experienced a significant drop of 48%. The company is now in talks with the U.S. Department of Energy for a loan commitment of $375 million through the Advanced Technology Vehicles Manufacturing (ATVM) program as part of its ongoing project review process.

Despite the pause in construction, Li-Cycle remains committed to its customers and strategic partners. The company continues to aim at leading the global supply of recycled critical battery materials for a sustainable future. It employs its proprietary Spoke & Hub Technologies™ to recycle various lithium-ion batteries and extract key battery-grade materials such as lithium carbonate, nickel sulphate, and cobalt sulphate.

Analysts have noted that this situation could signal potential disruptions in the electric vehicle industry for capital-intensive projects. Morgan Stanley and analyst Adam Jonas have identified higher interest rates, rising cost of capital, and a slowing EV market as potential causes for these disruptions. Other companies such as Fisker (NYSE:FSR), Lucid Group (NASDAQ:LCID), QuantumScape (NYSE:QS), and FREYR Battery (NYSE:FREY) could also face challenges due to their external funding or project financing needs.

Further details regarding Li-Cycle’s short-term plans and the status of the project review will be provided during the release of the company’s Q3 2023 financial results on November 13, 2023.

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