Li-Cycle Celebrates the Opening of One of the Largest Lithium-Ion Battery Recycling Facilities in Europe in Saxony-Anhalt, Germany

Li-Cycle hosts local dignitaries, stakeholders and partners as it officially opens its Germany Spoke, and supports Saxony-Anhalt’s role in fostering innovation and pioneering sustainable solutions

Sülzetal in Saxony-Anhalt is an ideal location for the company’s first European Spoke due to its proximity to key battery manufacturing facilities and Li-Cycle customers

The Germany Spoke opening reinforces Li-Cycle’s growing position as a leading sustainable battery recycler in Europe

Li-Cycle Holdings Corp. (NYSE: LICY) (“Li-Cycle” or the “Company”), a leading global lithium-ion battery resource recovery company, yesterday celebrated the grand opening of its first Spoke recycling facility in Europe, located in Sülzetal near Magdeburg in Saxony-Anhalt, Germany.

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Ribbon cutting at Li-Cycle’s grand opening event at its Spoke recycling facility in Saxony-Anhalt, Germany. Left to right: Jörg Methner, Mayor, Sülzetal; Isabelle Poupart, Chargée d'Affaires, Canadian embassy to Germany; Dr. Reiner Haseloff, Minister-President of Saxony-Anhalt; Udo Schleif, Li-Cycle Vice-President, Spoke Operations, EMEA; Tim Johnston, Li-Cycle Executive Chair and co-founder; Kathrin Tarricone, Saxony-Anhalt Landtag representative, Chair of the Committee for Economy, Energy, Climate and Environment. (Photo: Business Wire)

Minister-President of Saxony-Anhalt, Dr. Reiner Haseloff, was in attendance as Li-Cycle held an official opening ceremony after the start of operations in August 2023. Li-Cycle also hosted local dignitaries, employees, community stakeholders and partners at the event and provided tours of the plant.

"Today is a good day for Saxony-Anhalt,” said Minister-President of Saxony-Anhalt, Dr. Reiner Haseloff. “The new battery recycling plant in Sülzetal is an investment with a future. It is an important contribution to a sustainable, efficient and competitive battery industry. The achievement of sustainability goals depends on a circular economy. And we can and we must also make our living spaces environmentally- and climate-friendly."

The Germany Spoke utilizes Li-Cycle’s patented and environmentally friendly ‘Generation 3’ Spoke technology to directly process all forms of lithium-ion battery waste, including full electric vehicle battery packs, without the need for discharging, dismantling or thermal processing. One main line is now fully operational, and a second parallel line is expected to start operations in late 2023. Each main line has the capacity to process up to 10,000 tonnes of lithium-ion battery material per year. With an additional 10,000 tonnes of ancillary capacity also planned, the facility is expected to have a total processing capacity of 30,000 tonnes per year, making the Germany Spoke one of the largest in Li-Cycle’s current portfolio and one of the largest facilities of its kind in Europe.

Sülzetal’s central location near key battery manufacturing facilities and Li-Cycle customers, supportive industrial policy, and local stakeholder and community support, make it an ideal location for the Spoke facility. Germany also represents the largest market for both battery manufacturing scrap and end-of-life lithium-ion batteries in Europe. The Germany Spoke currently employs approximately 60 people and will further strengthen the region’s role in the clean technology industry.

“It was a pleasure to commemorate the official opening of Li-Cycle’s first European Spoke alongside key stakeholders,” said Tim Johnston, Executive Chair and co-founder of Li-Cycle. “Our Germany Spoke strengthens our position as a leading global battery recycling and resource recovery company and we are excited to continue expanding globally to build local and sustainable closed-loop battery supply chains. Our growing footprint in Europe is helping provide an environmentally friendly source of raw materials to support the Continent’s transition to electrification.”

Richard Storrie, President EMEA at Li-Cycle, added: “The State of Saxony-Anhalt is the ideal location for our first European recycling facility, and we are delighted to celebrate this milestone together with representatives from the region. Our first Spoke in Europe is supporting our growing customer base in Germany, the largest battery market on the Continent. We look forward to continuing to work alongside the local community in Saxony-Anhalt for our clean energy future.”

As Li-Cycle’s first Spoke facility outside North America, the Germany Spoke reinforces Li-Cycle’s ability to deploy its highly scalable and patent-protected technologies around the world. Li-Cycle has additional European Spokes planned in France and Norway. Li-Cycle’s Spokes produce an intermediate product called “black mass,” which includes a variety of valuable battery materials such as lithium, nickel and cobalt.

Li-Cycle plans to process the black mass it produces from its Spoke network at its Hub facilities. The Company’s first Hub facility, in Rochester, New York State, is on track to commence commissioning in late 2023 and will process up to 35,000 tonnes of black mass per year. Li-Cycle has also announced plans to develop a second Hub in Europe. Li-Cycle, in partnership with Glencore, plans to repurpose part of the existing Glencore metallurgical complex in Portovesme, Italy to create a new Hub facility (the “Portovesme Hub”). Phase 1 of the Portovesme Hub is expected to start processing black mass in the first half of 2024, enabling the production of lithium carbonate, as well as nickel and cobalt. The full-scale Phase 2 of the Portovesme Hub is expected to be one of the largest sources of sustainable recycled battery materials in Europe.

About Li-Cycle Holdings Corp.

Li-Cycle (NYSE: LICY) is a leading global lithium-ion battery resource recovery company and North America’s largest pure-play lithium-ion battery recycler, with a rapidly growing presence across Europe. Established in 2016, and with major customers and partners around the world, Li-Cycle is on a mission to recover critical battery-grade materials to create a domestic closed-loop battery supply chain for a clean energy future. The Company leverages its innovative, sustainable, and patent-protected Spoke & Hub Technologies™ to provide a safe, scalable, customer-centric solution to recycle all different types of lithium-ion batteries.

Our Spoke & Hub Technologies™ are based on a hydrometallurgical process that provides an environmentally friendly and cost-effective alternative to pyrometallurgical processing and traditional mining methods. At our Spokes, or pre-processing facilities, we recycle battery manufacturing scrap and end-of-life batteries to produce black mass, a powder-like substance which contains a number of valuable metals, including lithium, nickel, and cobalt. At our Hubs, or post-processing facilities, we will process black mass to produce critical battery-grade materials, including lithium carbonate, nickel sulphate, and cobalt sulphate. For more information, visit https://li-cycle.com/.

Forward-Looking Statements

Certain statements contained in this press release may be considered “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, Section 27A of the U.S. Securities Act of 1933, as amended, Section 21 of the U.S. Securities Exchange Act of 1934, as amended, and applicable Canadian securities laws. Forward-looking statements may generally be identified by the use of words such as “believe”, “may”, “will”, “continue”, “anticipate”, “intend”, “expect”, “should”, “would”, “could”, “plan”, “potential”, “future”, “target” or other similar expressions that predict or indicate future events or trends or that are not statements of historical matters, although not all forward-looking statements contain such identifying words. Forward-looking statements in this press release include but are not limited to statements about: the expectation that the Germany Spoke will support Saxony-Anhalt’s role in fostering innovation and pioneering sustainable solutions, and that it will reinforce Li-Cycle’s growing position as a leading sustainable battery recycler in Europe; the expectation that the Germany Spoke will contribute to a sustainable, efficient and competitive battery industry; the expected timeline for the start in operations of the second parallel line at the Germany Spoke, the planned additional ancillary capacity, and the expected total processing capacity of the plant; the expectation that the Germany Spoke will further strengthen the region’s role in the clean technology industry; the plans for further expansion globally to build local and sustainable closed-loop battery supply chains; the expectation that the Germany Spoke will support Li-Cycle’s growing customer base in Germany; the plans for additional European Spokes in France and Norway; Li-Cycle’s plans to process the black mass it produces in its Spoke network at its Hub facilities; the expected timeline for the commissioning of the Rochester Hub and its expected processing capacity; and the plans, in partnership with Glencore, for the Portovesme Hub, including the plans for Phase 1 and Phase 2 of the project. These statements are based on various assumptions, whether or not identified in this communication, including but not limited to assumptions regarding the timing, scope and cost of Li-Cycle’s projects; the processing capacity and production of Li-Cycle’s facilities; Li-Cycle’s ability to source feedstock and manage supply chain risk; Li-Cycle’s ability to increase recycling capacity and efficiency; Li-Cycle’s ability to obtain financing on acceptable terms; Li-Cycle’s ability to retain and hire key personnel and maintain relationships with customers, suppliers and other business partners; general economic conditions; currency exchange and interest rates; compensation costs; and inflation. There can be no assurance that such estimates or assumptions will prove to be correct and, as a result, actual results or events may differ materially from expectations expressed in or implied by the forward-looking statements.

These forward-looking statements are provided for the purpose of assisting readers in understanding certain key elements of Li-Cycle’s current objectives, goals, targets, strategic priorities, expectations and plans, and in obtaining a better understanding of Li-Cycle’s business and anticipated operating environment. Readers are cautioned that such information may not be appropriate for other purposes and is not intended to serve as, and must not be relied on, by any investor as a guarantee, an assurance, a prediction or a definitive statement of fact or probability.

Forward-looking statements involve inherent risks and uncertainties, most of which are difficult to predict and many of which are beyond the control of Li-Cycle, and are not guarantees of future performance. Li-Cycle believes that these risks and uncertainties include, but are not limited to, the following: Li-Cycle’s inability to economically and efficiently source, recover and recycle lithium-ion batteries and lithium-ion battery manufacturing scrap, as well as third party black mass, and to meet the market demand for an environmentally sound, closed-loop solution for manufacturing waste and end-of-life lithium-ion batteries; Li-Cycle’s inability to successfully implement its global growth strategy, on a timely basis or at all; Li-Cycle’s inability to manage future global growth effectively; Li-Cycle’s inability to develop the Rochester Hub, and other future projects including its Spoke network expansion projects in a timely manner or on budget or that those projects will not meet expectations with respect to their productivity or the specifications of their end products; Li-Cycle’s failure to materially increase recycling capacity and efficiency; Li-Cycle may engage in strategic transactions, including acquisitions, that could disrupt its business, cause dilution to its shareholders, reduce its financial resources, result in incurrence of debt, or prove not to be successful; one or more of Li-Cycle’s current or future facilities becoming inoperative, capacity constrained or if its operations are disrupted; additional funds required to meet Li-Cycle’s capital requirements in the future not being available to Li-Cycle on acceptable terms or at all when it needs them; Li-Cycle expects to continue to incur significant expenses and may not achieve or sustain profitability; problems with the handling of lithium-ion battery cells that result in less usage of lithium-ion batteries or affect Li-Cycle’s operations; Li-Cycle’s inability to maintain and increase feedstock supply commitments as well as securing new customers and off-take agreements; a decline in the adoption rate of EVs, or a decline in the support by governments for “green” energy technologies; decreases in benchmark prices for the metals contained in Li-Cycle’s products; changes in the volume or composition of feedstock materials processed at Li-Cycle’s facilities; the development of an alternative chemical make-up of lithium-ion batteries or battery alternatives; Li-Cycle’s revenues for the Rochester Hub are derived significantly from a single customer; Li-Cycle’s insurance may not cover all liabilities and damages; Li-Cycle’s heavy reliance on the experience and expertise of its management; Li-Cycle’s reliance on third-party consultants for its regulatory compliance; Li-Cycle’s inability to complete its recycling processes as quickly as customers may require; Li-Cycle’s inability to compete successfully; increases in income tax rates, changes in income tax laws or disagreements with tax authorities; significant variance in Li-Cycle’s operating and financial results from period to period due to fluctuations in its operating costs and other factors; fluctuations in foreign currency exchange rates which could result in declines in reported sales and net earnings; unfavorable economic conditions, such as consequences of the global COVID-19 pandemic; natural disasters, unusually adverse weather, epidemic or pandemic outbreaks, cyber incidents, boycotts and geo-political events; failure to protect or enforce Li-Cycle’s intellectual property; Li-Cycle may be subject to intellectual property rights claims by third parties; Li-Cycle’s failure to effectively remediate the material weaknesses in its internal control over financial reporting that it has identified or if it fails to develop and maintain a proper and effective internal control over financial reporting. These and other risks and uncertainties related to Li-Cycle’s business are described in greater detail in the section entitled “Risk Factors” and “Key Factors Affecting Li-Cycle’s Performance” in its Annual Report on Form 20-F filed with the U.S. Securities and Exchange Commission and the Ontario Securities Commission in Canada. Because of these risks, uncertainties and assumptions, readers should not place undue reliance on these forward-looking statements. Actual results could differ materially from those contained in any forward-looking statement.

Li-Cycle assumes no obligation to update or revise any forward-looking statements, except as required by applicable laws. These forward-looking statements should not be relied upon as representing Li-Cycle’s assessments as of any date subsequent to the date of this press release.

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