Li-Cycle Holdings Corp., an industry leader in lithium-ion battery resource recovery and the leading lithium-ion battery recycler in North America, has announced that it will operate its sixth and largest lithium-ion battery recycling Spoke facility at the Ultium Cells LLC battery cell manufacturing mega-factory site in Warren, Ohio. Ultium Cells is a joint venture between General Motors and LG Energy Solution. This new Spoke continues Li-Cycle’s strategic execution and focus on growing its integrated Spoke & Hub network in North America, including through commercial partnerships.
The Company’s new Spoke facility will be co-located on the same site as Ultium Cells’ battery cell manufacturing mega-factory currently under construction in Warren, Ohio and will support Li-Cycle’s previously announced multi-year agreement to process the battery manufacturing scrap from that mega-factory. Ultium Cells will construct a new building for the Company’s recycling facility, and Li-Cycle will install and operate its proprietary Spoke technology and equipment at the facility after construction is complete. The co-located Spoke will enhance Li-Cycle’s ability to serve Ultium Cells’ recycling needs by providing on-site conversion of battery manufacturing scrap to intermediate products.
The Company expects its Ohio facility to substantially reduce the costs associated with moving and handling battery manufacturing scrap materials, given its proximity to Ultium Cells’ mega-factory. The new Spoke facility will also be optimized for the particular types of battery manufacturing scrap generated at the Ultium Cells plant, enhancing production efficiency. The co-location represents an innovative model for Li-Cycle’s continued execution of its global Spoke & Hub model.
“We’re thrilled to collaborate on this inaugural facility co-located at a key customer site,” said Ajay Kochhar, President, CEO, and co-founder of Li-Cycle. “Building this Spoke facility alongside Ultium Cells’ plant is expected to substantially optimize costs and logistics as we transform manufacturing scrap from the plant into highly valuable material, using our unique, sustainable and fit-for-purpose approach.”
“Our collaboration with Li-Cycle is an instrumental step in improving the sustainability of our components and manufacturing processes. This facility is another bold step forward in our sustainability journey here at Ultium Cells,” said Kevin Kerr, Ultium Cells’ Ohio Plant Director.
Once complete, Li-Cycle’s Ohio Spoke facility will have the capacity to process up to 15,000 tonnes of battery manufacturing scrap and battery materials per year, bringing Li-Cycle’s total global recycling capacity to 55,000 tonnes of lithium-ion battery input per year. The Spoke facility is expected to be operational in early 2023 and is anticipated to create at least 35 new jobs. The primary output product of the Spoke will be black mass, a powder-like substance consisting of a number of highly valuable materials, including lithium, cobalt and nickel, which Li-Cycle will convert into battery grade materials at its Hub facility in Rochester, New York, scheduled for completion in 2023.