Glencore issues early warning about increased stake in Li-Cycle Holdings Corporation
In a significant move, Glencore Canada Corporation has acquired a controlling interest in Li-Cycle Holdings Corp, marking a major shift in the battery recycling industry. The acquisition, which concluded Li-Cycle's court-approved sale and investment solicitation process, was approved by both the Ontario Superior Court of Justice and the United States Bankruptcy Court for the Southern District of New York.
As of August 7, 2025, Glencore Canada Corporation now holds a roughly 62.6% stake in Li-Cycle Holdings Corp. This ownership was achieved through a court-approved restructuring and credit bid process. The acquisition effectively gives Glencore full control of Li-Cycle’s assets in North America and Europe, integrating Li-Cycle into Glencore’s battery recycling business.
The key points in the ownership structure post-acquisition include:
- The acquisition followed court orders under Canada’s CCAA process and U.S. Bankruptcy Court recognition.
- Glencore directed a reduction of $30,867,124 in a convertible note principal, leaving $93,192,007.32 outstanding (excluding accrued interest).
- The conversion of Glencore-held convertible debt into equity has materially increased their shareholding, diluting former public shareholders.
- The acquisition coincided with governance changes, including the resignation of a Li-Cycle board member affiliated with the prior structure.
Glencore, one of the world's largest global diversified natural resource companies, holds Convertible Notes in an aggregate principal amount of US$327,405,516.54 issued by Li-Cycle Holdings Corp. If the Convertible Notes were converted in full at the conversion prices in effect as at August 7, 2025, Glencore would hold approximately 62.6% of the outstanding common shares of Li-Cycle Holdings Corp.
With this acquisition, Glencore is set to strengthen its position in the battery recycling sector. Li-Cycle's assets, which include Spokes in Arizona, Alabama, New York, Ontario, and Germany, the Rochester Hub project, and intellectual property portfolio, will be integrated into Glencore's battery recycling division, Glencore Battery Recycling ("GBR").
Glencore's network of assets, customers, and suppliers spans the globe, supporting its marketing and industrial activities through a global network of over 50 offices. The company is a major producer and marketer of over 60 commodities, with a strong footprint in over 30 countries in both established and emerging regions for natural resources.
In line with its commitment to sustainability, Glencore will support the global effort to achieve the goals of the Paris Agreement through its efforts to decarbonize its operational footprint. More information about Glencore's climate action plan can be found on their website.
For more detailed information about the CCAA proceeding, interested parties can visit the website of the Court-appointed Monitor at http://www.alvarezandmarsal.com/LiCycle. An amended early warning report will also be filed by Glencore Ltd. on SEDAR+ under Li-Cycle Holdings Corp.'s profile.
[1] Glencore Announces Completion of Acquisition of Li-Cycle Holdings Corp. (Glencore Press Release, August 7, 2025) [2] Li-Cycle Completes Sale of Assets to Glencore (Li-Cycle Press Release, August 7, 2025) [3] Li-Cycle Board Member Resigns Amidst Glencore Acquisition (The Wall Street Journal, August 10, 2025) [4] Glencore Integrates Li-Cycle into Battery Recycling Division (Glencore Press Release, August 12, 2025)
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