The announcement is the latest in a yearslong string of financial troubles for Li-Cycle. | Around the World Photos/Shutterstock
Li-Cycle, once poised to build the first lithium-ion battery recycling facility of its kind in North America, is changing its leadership and limiting operations as it tries to sell the business or its assets.
The company is suspending operations at its Arizona and Alabama facilities as well, according to a May 1 press release, reducing its workforce by around 30 positions and furloughing more than 80 employees.
Ajay Kochhar, who co-founded Li-Cycle in 2016, stepped down from the board of directors and on May 15 will transition from president and CEO to a senior advisory role, according to the press release. The board also appointed a chief restructuring officer, William Aziz, and brought on Michelle Faysal as interim chief financial officer after Craig Cunningham stepped down.
The moves are the latest in a yearslong string of financial troubles for the company. Construction on its Rochester hub project, which was originally intended to process millions of pounds of batteries each year, was paused in 2023 as estimated costs kept rising.
In 2022, the company was also investigated by two law firms over its accounting methods, but No U.S. Securities and Exchange Commission investigation into Li-Cycle was announced in connection with the allegations.
Earlier this year, Li-Cycle told the SEC there was “substantial doubt about Li-Cycle’s ability to continue” and that it wouldn’t be able to meet the conditions for tapping into a U.S. Department of Energy loan of almost $500 million meant for the Rochester hub.
Those conditions included obtaining financing of around $173 million and settling around $92 million in previously incurred costs for the project, according to the SEC document and a previous press release from Li-Cycle.
The DOE loan, which was higher than initially announced, had been finalized in the last days of the Biden administration to try to give the project a financial lifeline even amid President Donald Trump’s return to the White House, Reuters reported in November.
“Li-Cycle’s mission and technology provides an important capability to the growing market need of critical materials recycling and energy security independence,” Jacqui Dedo, independent chair of the board, said in a written statement.
“On behalf of the Board, we want to thank all the stakeholders who have supported us in this key mission, and especially Ajay for his vision and leadership as co-founder and CEO, and our employees for their hard work and dedication to the Company.”