The US Department of Energy (DOE) has made a groundbreaking move to support the sustainable and efficient production of electric vehicles (EVs) in North America. The DOE’s Loan Programs Office (LPO) has announced a conditional commitment to Li-Cycle, a lithium-ion battery recycling company, for a $375 million loan. The funding will be used to construct North America’s first commercial lithium-ion battery resource recovery facility in Rochester, New York.
Li-Cycle, which is already North America’s largest lithium-ion sustainable pure-play battery recycler, will use the funding to expand its operations and create the Rochester Hub, a facility that will become a significant US source of battery-grade materials, including lithium, nickel, and cobalt. The Hub will process battery materials from Li-Cycle’s four US-based recycling centers and recycle them into battery grade end-products for reuse in lithium-ion battery production.
See also: LG acquires stake in Li-Cycle, a Canadian battery recycling company
The Rochester Hub is expected to support the battery needs of around 203,000 EVs per year and become the biggest source of lithium carbonate in the United States once it is fully operational. The construction of the facility is projected to create more than 1,000 construction jobs, and once fully operational, it will support around 270 permanent operations jobs.
Li-Cycle is pleased to announce that it has entered into a conditional commitment for a $375 million loan from the U.S. Department of @ENERGY for the continued development of its #Rochester Hub facility. Complete details in today’s press release: https://t.co/ENHPC5B2pT $LICY
— Li-Cycle (@li_cycle) February 27, 2023
This investment by the DOE is a significant step towards reducing the country’s reliance on China and strengthening America’s battery supply chain. The Biden administration’s Inflation Reduction Act has triggered a surge in companies opening clean energy manufacturing facilities in the US, and the Li-Cycle project is a perfect example of this trend.
See also: Li-Cycle, VinES to collaborate on recycle EV batteries
The funding by the DOE will not only support the growth of Li-Cycle, but it will also encourage the development of other innovative and sustainable companies in the EV sector. The establishment of the Rochester Hub will contribute to the creation of a circular economy, reduce waste, and support a cleaner future for North America.
