Glencore issues an early-warning disclosure concerning Li-Cycle Holdings Corporation.
Glencore Takes Majority Ownership of Li-Cycle Holdings Corp
In a significant move, Glencore has acquired a majority stake in Li-Cycle Holdings Corp, a leading lithium-ion battery recycling company. After court-approved restructuring steps under Canadian and U.S. bankruptcy courts, Glencore-affiliated entities now own approximately 62.6% of Li-Cycle's issued common shares.
The restructuring process, finalized on August 7, 2025, involved a reduction of some convertible note principal in Glencore's favour and a related Credit Bid transaction. Notably, on August 1 and August 4, 2025, the Ontario Superior Court of Justice and the United States Bankruptcy Court for the Southern District of New York approved the restructuring and related transactions.
On the closing date of August 7, 2025, Glencore Canada directed a principal reduction of about $30.87 million on Li-Cycle’s Second A&R Convertible Note No.1, leaving a balance of approximately $93.19 million, excluding accrued interest. As a result, Glencore-affiliated parties are deemed to beneficially own 74,587,088 common shares, representing around 62.6% ownership of the issued common shares of Li-Cycle.
This acquisition follows Li-Cycle's bankruptcy earlier in 2025, after which Glencore secured full control of Li-Cycle’s assets in North America and Europe, integrating the company under Glencore Battery Recycling.
Glencore, a global diversified natural resource company, provides financing, logistics, and other services to producers and consumers of commodities. With operations in over 30 countries, the company is committed to supporting the global effort to achieve the goals of the Paris Agreement and has published a Climate Action Transition Plan.
The acquisition of Li-Cycle concludes the company's court-approved sale and investment solicitation process. Glencore Canada Corporation has completed the acquisition of certain subsidiaries and assets of Li-Cycle Holdings Corp, including the Arizona, Alabama, New York, Ontario, and Germany Spokes, Rochester Hub project, and intellectual property portfolio.
The sale was done through a credit bid and assumption of certain indebtedness, as per the equity and asset purchase agreement with Li-Cycle Holdings Corp. Glencore currently holds Convertible Notes in an aggregate principal amount of US$327,405,516.54 issued by Li-Cycle Holdings Corp.
Additional information about Li-Cycle's CCAA proceeding can be found on the website of the Court-appointed Monitor at http://www.alvarezandmarsal.com/LiCycle. For the latest Batteries News related to Glencore, visit their website at glencore.com/publications. An amended early warning report regarding this acquisition will be filed on SEDAR+.
Glencore is one of the world's largest global diversified natural resource companies, producing and marketing over 60 commodities. Its customers are primarily industrial consumers, including those in the automotive, steel, power generation, battery manufacturing, and oil sectors. Glencore is a wholly owned indirect subsidiary of Glencore plc.
The Early Warning Press Release regarding Li-Cycle Holdings Corp. is a recent announcement from Glencore. If the Convertible Notes were converted in full, Glencore would hold approximately 62.6% of the outstanding common shares of Li-Cycle Holdings Corp. Glencore is a member of the Voluntary Principles on Security and Human Rights, the International Council on Mining and Metals, and an active participant in the Extractive Industries Transparency Initiative.
Technology plays a crucial role in Glencore's strategic acquisition of Li-Cycle Holdings Corp, a leading lithium-ion battery recycling company. This acquisition aligns with Glencore's commitment to support the global effort to achieve the goals of the Paris Agreement, as the company continues to explore and implement innovative technologies to reduce its environmental footprint.
