Li-Cycle completes sale of certain of its subsidiaries and assets to Glencore

On August 7, 2025, Li-Cycle Holdings Corp. (“Li-Cycle”) announced the completion of the sale of certain of its subsidiaries and assets (collectively, the “Li-Cycle Group”) to an affiliate of Glencore Canada Corporation (“Glencore”), Li-Cycle’s largest secured creditor, by way of credit bid and assumption of certain indebtedness.

The transaction was a part of a court-supervised sale and investment solicitation process (the “SISP”) announced on May 14, 2025, when the Li-Cycle Group sought and obtained an order from the Ontario Superior Court of Justice (the “Court”) for creditor protection under Canada’s Companies' Creditors Arrangement Act (the "CCAA"). Alvarez & Marsal Canada Inc. was appointed as monitor during the proceedings.

Along with the announcement that it had obtained creditor protection, the Li-Cycle Group announced that it entered into a term sheet with an affiliate of Glencore for a debtor-in-possession financing facility (“DIP Facility”), consisting of a credit facility of up to a maximum principal amount of US$12 million. This amount was later increased to approximately US$13 million. The facility was used to finance Li-Cycle’s working capital requirements, including for the continued operation of its Germany Spoke, and the implementation of the restructuring contemplated in the CCAA proceedings.

In addition to the term sheet, the Li-Cycle Group entered into an equity and asset “stalking horse” purchase agreement with Glencore, in which Glencore ultimately agreed to a “stalking horse” credit bid of US$46.4 million for certain of Li-Cycle’s subsidiaries and assets. The assets included Li-Cycle’s Spokes in Arizona, Alabama, New York, Germany and the Rochester Hub project, as well as the company’s intellectual property, and assumption of certain of its liabilities.

Li-Cycle’s U.S. subsidiaries (including Li-Cycle Inc., which owns the Arizona Spoke, Alabama Spoke, New York Spoke and Li-Cycle North America Hub, Inc., which owns its Rochester Hub project) commenced proceedings before the United States Bankruptcy Court for the Southern District of New York under Chapter 15 of the U.S. Bankruptcy Code, which received recognition of the CCAA proceedings as a “foreign main proceeding.”

The successful completion of transaction concluded Li-Cycle’s court-approved sale and investment solicitation process.

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Li-Cycle is a leading global lithium-ion battery resource recovery company. Established in 2016, and with major customers and partners around the world, its mission is to recover critical battery-grade materials to create a domestic closed-loop battery supply chain for a clean energy future.

Glencore is one of the world's largest global diversified natural resource companies and a major producer and marketer of more than 60 commodities that advance everyday life. Through a network of assets, customers and suppliers that spans the globe, it produces, processes, recycles, sources, markets and distributes the commodities that support decarbonization while meeting the energy needs of today.