The Energy Storage Report 2024

Now available to download, covering deployments, technology, policy and finance in the energy storage market

Li-Cycle Q4 revenues fell 32% on low metals prices; Rochester hub on track


Lithium-ion battery recycler Li-Cycle saw revenues fall 32% in its fourth quarter due to a fall in metals prices, while its Rochester hub in New York state is on track for a late 2023 opening.

Li-Cycle had revenue from product sales and recycling services of US$3.5 million in the three months to October 31, 2022, the end of its financial year. That is 14.6% lower than the US$4.1 million it recorded in the same period the previous year, which it attributed to the decrease in metals prices, primarily cobalt.

This article requires Premium SubscriptionBasic (FREE) Subscription

Enjoy 12 months of exclusive analysis

  • Regular insight and analysis of the industry’s biggest developments
  • In-depth interviews with the industry’s leading figures
  • Annual digital subscription to the PV Tech Power journal
  • Discounts on Solar Media’s portfolio of events, in-person and virtual

Or continue reading this article for free

These figures exclude the effect of what the firm described as a “non-cash fair market value (FMV) pricing adjustment of $0.5 million, relating to end-of-period metal prices for prior-period black mass sales”.

Including the effect of the FMV, quarterly revenue fell 31.8% year-on-year, from US$4.4 million to US$3.0 million. The unfavourable FMV pricing adjustment of US$0.5 million compares to a ‘favourable’ one of US$0.3 million for the prior year’s Q4.

The price of cobalt fell 11.5%, from US$60,407/tonne at the end of Q4 2021 to US$53,462 in Q4 2022. Nickel was comparatively stable.

The two factors offset higher sales of black mass, the metals-rich product of the first stage of recycling lithium-ion batteries.

Revenue still grew substantially for the whole financial year, up 140% from a year earlier to US$15.6million excluding FMV effects in each period, and up 83% to US$13.4 million including FMV effects.

The company operates a hub and spoke model. Four operational ‘spoke’ recycling facilities turn battery packs into black mass in Arizona, Alabama, New York and Ontario, which is then sold in the market. It is also building spokes in Germany and Norway.

Once its planned major ‘hub’ recycling facility opens in Rochester later this year, part of that black mass will be sent there for processing into individual metals. By 2024, most of the black mass will be sent there.

The company has a targeted investment budget of US$486 million for the Rochester hub.

The combined recycling capacity of these facilities will reach 80,000 tonnes of lithium-ion battery material input/year by the end of 2023, versus a current capacity of just over 50,000 tonnes.

Operating expenses doubled in Q4 to US$39.4 million as Li-Cycle continued to expand its operations in North America and Europe, resulting in a net loss for the quarter of US$33.9 million. The prior year’s Q4 net loss included a non-cash loss related to its SPAC listing making a comparison meaningless.

The company ended its financial year with US$578.3 million in cash, down 11% from the previous quarter.

See all previous coverage of the company here.’ publisher Solar Media will host the 5th Energy Storage Summit USA, 28-29 March 2023 in Austin, Texas. Featuring a packed programme of panels, presentations and fireside chats from industry leaders focusing on accelerating the market for energy storage across the country. For more information, go to the website.

22 October 2024
New York, USA
Returning for its 11th edition, Solar and Storage Finance USA Summit remains the annual event where decision-makers at the forefront of solar and storage projects across the United States and capital converge. Featuring the most active solar and storage transactors, join us for a packed two-days of deal-making, learning and networking.

Read Next

April 17, 2024
Community-scale battery storage developer Ninedot has been supported in purchasing project sites in New York by specialist real estate investment trust SolarREIT.  
April 17, 2024
Green Li-ion, a Singapore-headquartered startup, has put into operation what it claims is the first recycling facility in North America to turn black mass directly into precursor cathode active material (pCAM).
April 16, 2024
The spinout and change in ownership of Mitsubishi Power Americas’ energy storage activities into standalone unit Prevalon will make it as ‘nimble and fast-moving as possible’, its CEO said, while not ‘chasing market share for the sake of market share’.
April 15, 2024
Mitsubishi Power Americas’ spinout BESS solution firm Prevalon has entered into a long-term supply deal with lithium-ion battery OEM Rept.
April 15, 2024
US utility Dominion Energy is seeking proposals for solar, wind and energy storage projects in the state of Virginia.

Most Popular

Email Newsletter