Page 164 - CW E-Magazine (28-11-2023)

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TOUGH TIMES SECURING SUPPLIES

Li-Cycle says it is evaluating fi nancing and strategic Europe moves closer to developing framework to

alternatives reinforce supply of critical raw materials

Beleaguered Toronto-based bat- Li-Cycle President and CEO, Mr. Ajay The Council of the European Union Ribera Rodríguez, acting Spanish third to the list of strategic raw mate-
tery recycling company, Li-Cycle, has Kochhar, at a press conference, (EU) and the European Parliament have vice-president of the government and rials (hence, 34 critical raw materials
announced that it has engaged Moelis & has pushing back on dire predictions reached a deal on a proposed regulation minister for the ecological transition and 17 strategic raw materials). The
Company, a leading investment bank, that the company is headed toward establishing a framework to ensure a and the demographic challenge, said. compromise text also considers that
as fi nancial advisor to assist in evaluat- bankruptcy. secure and sustainable supply of critical in addition to natural graphite (which
ing fi nancing and strategic alternatives raw materials, better known as the Criti- Reducing import dependency already in the list), synthetic graphite
for the company. “It has to be our top priority,” he cal Raw Materials Act. The agreement The Commission’s proposed regu- will also be a strategic raw material
said of the Rochester hub. “We have is provisional, pending formal adoption lation establishes a list of 34 critical during a period of three years, until the
“There can be no assurance that this high costs, followed by sobering $390-mn that we have invested in the in both institutions, which are the main raw materials (including 16 strategic Commission makes the fi rst revision
evaluation process will result in the Q3-2023 earnings. facility already, between the buildings decision-making body of the EU. ones) and sets targets to increase the of the list. Furthermore, the agreement
Company pursuing or consummating and all the equipment. We are not EU contribution of these substances allows that projects able to produce
any particular transaction or other The Rochester factory is a core walking away from that,” he said. The political agreement keeps the (10% for extraction; 40% for process- innovative raw materials that substi-
strategic outcome,” the company said part of Li-Cycle’s operations and is the overall objectives of the original pro- ing and 15% for recycling). To achieve tute strategic raw materials in rele-
in a statement. latest example of high costs battering Li-Cycle’s business plan works posal, but strengthens several elements. this, the proposal calls for a quick and vant technologies can be candidates
clean-energy companies. The turbulence off a patented spoke-and-hub model. It includes aluminium in the list of stra- simplifi ed permit procedure for strate- to become strategic projects. Member
Li-Cycle’s share prices have fallen is expected to impact Li-Cycle’s The spokes shred the batteries, crea- tegic and critical materials, reinforces gic extracting projects, to be dealt by States will also have the option to
drastically after announcing it would pending agreement with the US ting what is called black mass. The the benchmark of recycling, clarifi es a single national contact point. It also object on whether a project will be
pause construction on a fi rst-of-its-kind Department of Energy for a $375-mn hub is what refi nes the product to the permitting procedure for strategic called for risk analysis of possible depen- developed in their Member States.
lithium-ion-battery recycling plant in loan to complete the facility and puts create battery-grade lithium, nickel, projects, and requires relevant compa- dencies, member states’ exploration
Rochester, New York (USA), citing its growth plans at risk. and cobalt. nies to perform a supply-chain risk plans, higher investment in research, The provisional agreement keeps
assessment on their sourcing of strategic innovation and skills; and protection the benchmarks of 10% for extraction
EVALUATING POSSIBILITIES raw materials. of the environment by promoting the of raw materials and 40% for pro-

BASF and SK On to explore battery materials “The agreement lays the founda- circularity and sustainability of raw cessing, but increases the benchmark
materials.
for recycling to at least 25% of EU’s
annual consumption of raw materials.
collaboration tion of Europe’s strategic autonomy. On the global stage, the regulation In addition, there should be substantial
Our dependency on raw materials is
BASF, chemicals giant and battery “With the collaboration with SK On, the Achilles’ heel of our competitive- identifi es measures to diversify im- increase on the recovery of raw mate-
materials producer, and SK On, the we are further strengthening our ness, but with the Critical Raw Mate- ports of critical raw materials ensuring rials present in waste.
South Korean electric vehicle (EV) market position to serve battery manu- rial Act we can turn this weakness into that not more than 65% of EU’s con-
battery cell manufacturer, have entered facturers and electric vehicle producers strength. We can create a truly European sumption of each strategic raw material The co-legislators have proposed
into an agreement to jointly evaluate around the world. We want to address extracting sector; we can turn our comes from a single third country. that 18 months after the entry into force
collaboration opportunities in the global the need for more sustainable solutions waste into a resource; we can build of the regulation, the Commission shall
lithium-ion battery market focused on for the electric vehicle industry. And we closer ties to third countries and we Main elements of the agreement present a report on the estimated con-
North America and Asia-Pacifi c. are ready to work with our customers can secure the life-line of our industry The provisional agreement adds sumption of each critical raw material
and partners in all regions to make this in a truly sustainable way,” Ms. Teresa one critical raw material (aluminium) for the next three decades.
Initially, BASF and SK On will a reality,” said Dr. Peter Schuhmacher,
focus on evaluating collaboration President of BASF’s Catalysts division, Trecora acquires Chemtrade’s US lubricant additives
options for cathode active materials who is also responsible for the com-
(CAM) production. The companies pany’s battery materials and battery business
said more details on the collaboration recycling business.
will be revealed at a later stage. Addi- US-based high purity hydrocar- leading producers of phosphorus portfolio with its offering of unique and
tional collaboration opportunities along From Left: Jee Dong-seob, SK On Chief “The collaboration with BASF is bons producer, Trecora, has acquired pentasulfi de, will be part of Trecora’s cost-effective solutions for constantly
the battery materials value chain will Executive Offi cer and Dr. Peter Schuhmacher, part of our efforts to bolster battery the lubricant additives business of Specialty Chemicals business head- evolving lubricant requirements,” said
President of BASF’s Catalysts division, who
be evaluated subsequently, including is also responsible for the company’s battery materials supply chain,” said Jee Chemtrade-based in Lawrence, Kansas. quartered in Texas. “This business Mr. Brad Crocker, President and CEO
battery recycling. materials and battery recycling business. Dong-seob, President and CEO of SK On. The business, one of North America’s complements our specialty chemical of Trecora.

164 Chemical Weekly November 28, 2023 Chemical Weekly November 28, 2023 165

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