Switzerland’s Glencore PLC has shown interest in acquiring the financially troubled Canadian EV battery recycling company Li-Cycle Holdings Corp. On March 14, Glencore revealed that it had approached Li-Cycle regarding a possible transaction. In a letter to Li-Cycle’s chair, Jacqueline Dedo, Glencore's senior legal counsel Adam Luckie stated that such a transaction could address Li-Cycle's operational and capital structure challenges while maximizing value. According to The Globe and Mail, Li-Cycle established a board committee to assess Glencore’s proposal, though no outcome is guaranteed. Glencore is one of Li-Cycle’s major debt holders and has contributed US$275 million since 2022 to help sustain the company.

Li-Cycle's future faced uncertainty after it halted construction on its primary recycling project in Rochester, N.Y., in 2023 due to rising costs. Although the U.S. Department of Energy agreed to provide a US$475 million loan to help complete the facility, Li-Cycle has been unable to access these funds because it has not yet met required conditions. With mounting quarterly losses and limited cash reserves, concerns have emerged about the company’s ability to manage its debt. In his letter, Mr. Luckie urged Li-Cycle to take immediate measures to conserve cash and avoid further deterioration of its "already strained liquidity," including canceling all outstanding warrants.

Following Glencore’s disclosure of its interest, Li-Cycle’s stock climbed 55 percent on Friday and another 32 percent on Monday, closing at 39 US cents. Despite this temporary surge, Li-Cycle’s valuation remains a fraction of its former peak. Since its high in February 2021, the company’s share price has declined by over 99 percent. The possible acquisition of Li-Cycle by Glencore may be minor in comparison to the Swiss company’s larger acquisitions in Canada. For example, Glencore purchased 77 percent of Teck Resources Ltd.'s coal operations in 2024 for about US$6.9 billion. Following that deal, then-industry minister François-Philippe Champagne stated that future acquisitions of major Canadian critical mineral firms would only be approved under exceptional circumstances.

Due to Li-Cycle’s smaller scale, Glencore’s proposed acquisition is unlikely to trigger significant regulatory scrutiny in Canada. Li-Cycle went public in 2021 via a special purpose acquisition company (SPAC), raising approximately US$600 million. Although this initial success seemed promising, persistent financial struggles have severely reduced the company's market value. Glencore’s involvement could offer Li-Cycle crucial financial support and improved operational stability. While there is no certainty the deal will move forward, Glencore’s interest suggests a potential route to recovery for the embattled battery recycler.