Koch takes a stake in Li-Cycle

Koch Strategic Platforms (KSP), a subsidiary of Koch Investments Group, will make a $100 million investment in Li-Cycle.

In addition to the new capital, Li-Cycle and several Koch Industries subsidiaries are exploring opportunities for Li-Cycle’s global growth. This includes potentially working with Koch Engineered Solutions (KES), which provides engineering, procurement, and construction services, as well as the Optimized Process Designs group (OPD), a capability of KES, which provides detailed engineering packages, single point procurement for all equipment and materials, fabrication, and construction services.

Li-Cycle and KES are exploring opportunities to support the global deployment of Spoke facilities and to suport company’s Rochester, New York, hub.

“KSP’s investment in Li-Cycle will further fund and accelerate the growth of our lithium-ion battery recycling footprint in North America and globally, as we scale to pursue new market opportunities,” said Ajay Kochhar, co-founder and CEO of Li-Cycle.

“Lithium-ion battery recycling and recovery is critical for the electrification of transportation. Li-Cycle is a true leader in the space with proven innovative technology and a robust portfolio of customers and strategic partners,” said David Park, president of Koch Strategic Platforms.

“We’re confident in Li-Cycle’s cutting-edge technology and in its ability to deliver long-term value to its stakeholders throughout the battery supply chain.”

With the pace of deployment of new battery mega-factories far exceeding initial expectations, Li-Cycle needs to quickly expand capacity to capture the growing market opportunity.

Li-Cycle’s estimate for the quantity of lithium-ion batteries available for recycling globally by 2025 has accelerated significantly in just the past five months. Estimates in North America, Europe and China have all increased by at least 50%.

Among the key drivers of this growth are new battery mega-factory announcements exceeding original expectations. This drives additional battery manufacturing scrap available for recycling, in lockstep with battery manufacturing. The incremental capital being raised from KSP will be directed towards the accelerated expansion of Li-Cycle’s battery recycling footprint, both in North America and internationally.

Proven expertise

Opportunities for Li-Cycle to collaborate with KES include:

Spoke Fabrication

  • KES has capabilities to construct, test and ship modular Spoke facilities at various KES construction facilities, including in Texas and Poland

Spoke Deployment

  • KES, with offices in 54 countries, can support Li-Cycle with the roll-out and ground execution of Spoke facilities globally

Hub Operational Readiness

  • KES can support Li-Cycle with the development of a tailored operational readiness plan for the Rochester Hub