Toronto, Ontario – A Canadian electric vehicle battery recycling business is filing for bankruptcy protection in Canada and the U.S.
The Toronto-based lithium-ion battery recycler Li-Cycle cited ongoing financial difficulties in its filings with regulators on both sides of the border. The company is now seeking to restructure operations and is exploring selling off its assets in order to recover some of its losses.
Last week, Li-Cycle obtained creditor protection status through Canada’s Companies’ Creditors Arrangement Act and it initiated proceedings under Chapter 15 of the U.S. Bankruptcy Code.
After the filing, the company’s co-founder and chief executive Ajay Kochhar left his position earlier. William Aziz, an external hire with experience managing corporate restructuring, has been appointed as chief restructuring officer.
A Swiss commodity trading company, Glencore, is seen as a leading acquisition contender for Li-Cycle, or at least for some of its assets. It previously made a $40 million offer to secure Li-Cycle’s subsidiaries and assets.
Li-Cycle’s financial struggles have been linked to its ongoing construction of a hub in Rochester, New York. The US$700 million project that was expected to bring 250 jobs to the region but construction was halted in 2023 due to rising costs. While the company received a US$475 million loan commitment from the U.S. government to complete the project, it faced operational and financial hurdles that prevented it taking advantage of the loan.
