off-the-wire

Li-Cycle raises cost estimate for Rochester Hub project again

Kitco Media
By Reuters
Published:
Updated:
Reuters
Li-Cycle raises cost estimate for Rochester Hub project again teaser image

Li-Cycle (NYSE: LICY) on Monday raised the cost estimate for the construction of its Rochester Hub again to $960 million, even as the battery recycling company struggles with liquidity issues.

The increase in cost was primarily due to the refinement of the methodology used for estimating the project budget, it said.

In October, Li-Cyle paused the construction of its flagship battery recycling facility in Rochester, New York, and later said it was evaluating financing and strategic alternatives.

It had also raised the cost of the project to between $850 million and $1 billion in November, from $560 million earlier.

Li-Cyle said on Monday it continues to complete its comprehensive review work, including re-engaging and re-bidding construction subcontracts.

Last week, the company secured an additional $75 million investment through a convertible note from Swiss miner and commodities trader Glencore (LON: GLEN), to help with the Hub’s financing.

(Reporting by Kabir Dweit in Bengaluru; Editing by Devika Syamnath)

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