RecycLiCo Battery Materials, a battery materials company specializing in the development of novel and environmentally friendly lithium-ion battery recycling and upcycling technologies, recently entered a 50-50 joint venture with Taiwan-based Zenith Chemical Corporation to build a 2,000 metric ton per year lithium-ion battery recycling plant in Taiwan.
The initial plant, estimated to cost US$25 million, will be dedicated to processing and converting lithium-ion battery waste into resources such as lithium-ion battery precursor cathode active material, lithium hydroxide monohydrate, and lithium carbonate.
The parties have agreed to build their first commercial scale battery recycling facility and contribute 50% of the required capital in three initial stages, with the balance being advanced as required to fund construction and start-up costs.
The Zenith contribution (50%) will be funded in cash and RecycLiCo will receive a 10% interest in the joint venture company in return for a license of its technology, with the balance (40%) of its interest in cash.
The joint venture facility will leverage RecycLiCo’s lithium-ion battery recycling process and Zenith’s existing land, infrastructure, and labor resources in Taiwan.
Since signing a Memorandum of Understanding in February 2022, RecycLiCo and Zenith have successfully collaborated with a leading battery materials company to validate the RecycLiCo process and to confirm the quality of its high-nickel cathode precursors and lithium chemical products.
Zenith specializes in the production of nickel-based chemicals, including high-purity nickel sulfate for lithium-ion batteries. Zenith also has a shareholding partnership with Hanwa Co., Ltd, a large publicly traded Japanese distribution company known for its expertise in lithium-ion battery-related materials. Additionally, Zenith collaborates, through a joint venture, with Central Glass Co., Ltd., a leading Japanese publicly traded company specializing in fluorine-based chemicals, and cater to the semiconductor and lithium-ion battery markets.
As an incentive to enter the joint venture, RecycLiCo will receive a royalty on net product sales and Zenith will receive 4,000,000 RecycLiCo shares and 6,000,000 share purchase warrants. The warrants will have a five-year term, and an exercise price based on the weighted average trading price for the 30-day period preceding the agreement. All securities issued under the joint venture agreement will have a four-month hold period, and the joint venture agreement is subject to acceptance by the TSX Venture Exchange and Investment Commission, Ministry of Economic Affairs of the Republic of China (ICMOEA).