Li-Cycle Holdings Reports Strong Q3 2024 Performance

Li-Cycle Holdings Corp. ( (LICY) ) has released its Q3 earnings. Here is a breakdown of the information Li-Cycle Holdings Corp. presented to its investors.

Li-Cycle Holdings Corp., a global leader in lithium-ion battery resource recovery, leverages innovative Spoke & Hub Technologies to recycle critical battery materials, facilitating a closed-loop supply chain for clean energy solutions. In its third quarter of 2024, Li-Cycle reported a remarkable 79% year-over-year revenue growth, reaching $8.4 million. The company also secured a significant $475-million loan facility from the U.S. Department of Energy to advance its Rochester Hub project. Key achievements included a 50% reduction in SG&A expenses due to cash preservation efforts and a strong off-take agreement with Glencore for its mixed hydroxide precipitate production.

The company’s strategic efforts are focused on optimizing its Spoke facilities to enhance cash flow and establish a self-sufficient business model. The Rochester Hub project is anticipated to produce substantial volumes of lithium carbonate and MHP, backed by a robust commercial framework with partners like Glencore. Li-Cycle’s financial performance was bolstered by other income increases and a significant reversal from a loss to a profit of $56.5 million, attributed to fair value adjustments and reduced SG&A costs.

Li-Cycle aims to maintain momentum by securing the necessary funding to restart construction at its Rochester Hub, a pivotal step in its expansion strategy. This involves exploring additional financing options to fulfill the conditions for the first advance under the DOE loan facility. Management’s outlook remains positive, with plans to continue leveraging strategic partnerships and innovative technologies to support the global shift towards electrification and sustainable energy solutions.