Exclusive: Washington seals $475 million loan for battery recycler Li-Cycle ahead of Trump's arrival

Ernest Scheyder - Reuters - 07/11
The U.S. Department of Energy on Thursday finalized a $475 million loan for Li-Cycle Holdings , giving the metals recycler a financial lifeline to build a New York battery processing facility seen as key to outgoing President Joe Biden's vision for a domestic electric vehicle supply chain.
  • Energy Dept funding key to Li-Cycle's US recycling plans
  • Biden officials had rushed to close ahead of Trump's return
  • Upstate NY plant would be one of the largest US sources of lithium
  • Loan includes principal and capitalized interest
  • Company now needs to secure private financing
Nov 7 (Reuters) - The U.S. Department of Energy on Thursday finalized a $475 million loan for Li-Cycle Holdings (LICY.N), opens new tab, giving the metals recycler a financial lifeline to build a New York battery processing facility seen as key to outgoing President Joe Biden's vision for a domestic electric vehicle supply chain.
The long-awaited loan, which is $100 million higher than provisionally announced early last year, will keep the Glencore-backed (GLEN.L), opens new tab company alive as it works to expand the recycling of batteries that are increasingly powering Americans' everyday lives, ranging from everyday electronics to EVs.
The loan for the plant, which would be one of the largest U.S. sources of the battery metal lithium, also cements a key part of Biden's climate agenda, ensuring the company receives government financial support regardless of any steps that President-elect Donald Trump may take when he assumes office in January.
Concerns that Trump could try to slow Washington's financial support for the renewable energy transition have spooked investors since his Tuesday victory. While Trump is not expected to be able to stop that transition, Biden officials are quickly moving to close loans and approve projects before January.
Li-Cycle had sought the loan for nearly three years, but cost overruns and technical issues forced it to hire a corporate restructuring expert last year, a step that sparked questions ab...
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