Hi Brucie
I scrolled through the last presentation of Li-Cycle. They have an impressive rollout of spoke facilities in the US and in Europe (in Germany since 01.08.2023, 10.000 t p.a. according to the german press, according to the li-cycle website 30.000 t p.a. ) operational, in Europe under construction (Norway, France, capacity each 10.000 t p.a.). Moreover they have a hub-facility in the US under construction (process capacity of black mass: 35.000t p.a.). And they are planing a hub in Italy.
They are eligible to a special US- government loan ($ 375 M) and have a partly backing of Koch Industries (convertible loan $ 100 M) , LG chem (convertible laon $ 150 M), Glencore ( convertible loan $ 200 M).
- LG chem is partnering with them for North America: North Americafeedstock in-and off-takeagreements
- Glencore is partnering with them on the globe: Globalfeedstock in-and off-takeagreement
(source last presentation, page 16:
https://s27.q4cdn.com/432858399/files/doc_presentations/2023/06/LICY-Non-Earnings-Investor-Presentation-June-2023.pdf )
Quiet a set-up. The competitors of NMT are not sleeping.
On the other hand they had a negative cashflow from operating activities of $ - 39 Million, a negative cahsflow from investing activities of $ - 87 M and a negative cashflow from financing activities of $ - 1,7 M, as stated in the last activities report of the March quater 2023 (cash on hand still about $ 400 M)
(source, page 11:
https://d18rn0p25nwr6d.cloudfront.net/CIK-0001828811/140e86ea-25dc-4998-bc6f-99c5d69d12b6.pdf ).
and there will be enough room for other recycling players, if the numbers are correct and if I conceive it correctly. Look at the TAM slide of the li-cycle presentation on page 6, total battery materials available
vs. forecast total post-processing recycling capacity for the years 2023, 2025 and 2030.
(source, page 6:
https://s27.q4cdn.com/432858399/files/doc_presentations/2023/06/LICY-Non-Earnings-Investor-Presentation-June-2023.pdf )
+ NMT's flexible business model.
Are there arguments that the way li-cylce is approaching the recycling buisness is more favourable?
When they are building so many capacities, isn't there the danger, that potential future customers are saying, we're going to use the wide network and service of li-cycle, because the capacity is there.
I know this contradicts a little bit the massive material that shall be available on the market in the future, which leaves place for competitors. But i would like to hear your (fellow investors) opinions about the pros and cons of NMT in the face of the li-cycle development (I'm aware of the flexible business model of NMT, and CR's last remarks in the recent crux interview). I don't want to overlook some major pros or cons.
Li-cycle is saying they can recycle
up to 95% of the lithium battery. But I couldn't find any more specific numbers. Does anybody know them?
Best
All chemistries and formats of lithium-ion batteries are suitable for our technology
(20min delay)
