Glencore acquires Li-Cycle assets in completed credit bid sale

TORONTO - Glencore Canada Corporation has completed the acquisition of key Li-Cycle Holdings Corp. assets through a credit bid transaction, according to a press release statement issued Thursday. InvestingPro data shows Li-Cycle had been operating under significant financial strain, with a debt burden of $446.3 million and a concerning current ratio of 0.58.

The deal includes Li-Cycle’s battery recycling facilities ("Spokes") in Germany, Arizona, Alabama, New York, and Ontario, along with its Rochester Hub project and intellectual property portfolio. As part of the transaction, Glencore, which was Li-Cycle’s largest secured creditor, has also assumed certain liabilities. Despite Li-Cycle’s operational challenges, reflected in its negative gross profit margin of -173.57%, the company had maintained revenue growth of 53.01% in its last reported period.

The acquisition concludes Li-Cycle’s court-approved sale and investment solicitation process conducted under creditor protection. The remaining Li-Cycle entities are either being wound up under their corporate statutes or remain under protection pursuant to the Companies’ Creditors Arrangement Act in Canada and Chapter 15 of the U.S. Bankruptcy Code.

Li-Cycle, which specializes in lithium-ion battery recycling technology, had been working through financial restructuring. The company’s operations include facilities designed to process end-of-life batteries and battery manufacturing scrap.

The transaction represents a significant consolidation in the battery recycling sector, with mining giant Glencore expanding its presence in the battery materials supply chain through the acquisition of Li-Cycle’s technological assets and operational facilities. For deeper insights into the battery recycling sector and similar investment opportunities, access comprehensive industry analysis through InvestingPro’s extensive research reports covering 1,400+ US equities.

Financial details of the credit bid were not disclosed in the announcement. The sale was executed through an affiliate of Glencore Canada Corporation.

In other recent news, Li-Cycle Holdings Corp. has encountered a significant regulatory hurdle. The Ontario Securities Commission has issued a cease trade order against the company due to its failure to file essential financial documents. These documents include interim financial statements and management’s discussion and analysis for the quarter ending March 31, 2025. The order took effect immediately after market closure on June 5, 2025, and impacts trading of the company’s securities in Ontario and other Canadian jurisdictions with similar provisions. This development does not affect beneficial security holders who were neither insiders nor control persons as of the order date, allowing them to sell securities acquired before the order under certain conditions. The company’s compliance with financial reporting requirements is crucial for maintaining investor confidence. This regulatory action highlights the importance of timely and accurate financial disclosures. Investors are advised to stay informed of any updates regarding the company’s filing status.

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