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Battery Giant LG Energy Strikes Supply Deal With Recycling Firm

  • Li-Cycle will provide materials under a 10-year pact from 2023
  • Deal includes $50 million investment in Toronto-based company
Lithium-ion batteries on conveyor belt at Li-Cycle’s Spoke facility in Rochester, New York.
Lithium-ion batteries on conveyor belt at Li-Cycle’s Spoke facility in Rochester, New York.Source: Li-Cycle/FadIn Productions
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One of the world’s largest electric-car battery makers struck a deal with recycling firm Li-Cycle Holdings Corp. as surging demand for key raw materials pushes consumers to expand their supply chains.

South Korea’s LG Chem Ltd. and its battery unit LG Energy Solution agreed to buy 20,000 metric tons of battery-grade nickel from Li-Cycle over 10 years starting in 2023 as part of a deal that includes a $50 million investment in the Canadian firm, the companies said Tuesday in a statement. LG Energy Solution, the world’s No. 2 EV battery producer, will also sell nickel-bearing lithium-ion battery scrap and other materials to Li-Cycle under the pact.