Li-Cycle and Glencore establish commercial framework for Rochester Hub products

Li-Cycle (LICY) has entered into an agreement with Glencore (GLNCY) covering the off-take of 100% of the MHP to be produced at its Rochester Hub. By amending and restating certain of its existing commercial agreements with Glencore and Traxys North America, the company has established the commercial framework for the proposed MHP scope for the Rochester Hub project. Glencore and Traxys’ existing off-take rights covering lithium carbonate production from the Rochester Hub are not affected by these amendments. Under the amended commercial agreements, Glencore has agreed to purchase all of the company’s MHP production at the Rochester Hub on agreed commercial terms based on market prices for the nickel and cobalt contained within the MHP. The payment terms and working capital facilities under both the Traxys and Glencore commercial agreements have also been adjusted to align with the requirements of the proposed loan to Li-Cycle. Li-Cycle expects to produce up to approximately 8,250 tons of battery-grade lithium carbonate and up to approximately 72,000 tons of MHP annually at the Rochester Hub under the MHP scope. The project’s nameplate processing capacity remains at 35,000 tons of black mass annually.