April 10, 2025: Troubled Canadian firm Li-Cycle has revealed a further bleak financial outlook, with its plans to become a global recycling player appearing to be in jeopardy.

In full year results posted on March 31, the company said despite reduced losses, it requires additional financing to meet its obligations and repay its liabilities arising from the ordinary course of business operations when they become due — “if it is to continue as a going concern”.

The firm said it is “presently aware” of no additional sources of financing to meet its obligations and repay its liabilities arising from the ordinary course of business.

And it revealed a potential lifeline deal with mining giant Glencore is still under evaluation.

A special committee set up by the recycler continues to study the terms of the proposed deal, but Li-Cycle said it can provide no assurance that it will enter into an agreement attractive to its shareholders and other stakeholders, or at all.

Li-Cycle said adjusted EBITDA loss in the past year improved to US$90.5 million, compared to an adjusted EBITDA loss of US$156.4 million in 2023.

This was largely driven by higher revenue, lower cost of sales and selling, general and administrative expenses.

As of December 31, 2024, Li-Cycle had cash and cash equivalents on hand of US$22.6 million.

Ajay Kochhar, Li-Cycle’s president and CEO, said there had been progress in 2024, including closing a US$475 million loan facility with the US Department of Energy to help finance the firm’s Rochester Hub project.

“Looking ahead, we are focused on managing our cash position while considering our financial and strategic alternatives.”

Li-Cycle announced a leadership shake-up last March and job cuts representing 17% of the firm’s workforce to generate about US$10 million in cost savings on an annualized basis.

Li-Cycle confirmed last August that its first battery recycling ‘spoke’ facility could be shut down, as the firm explored “financing and strategic options” to increase near-term liquidity