RecycLiCo, Zenith Chemical Corp. provide joint venture update

RecycLiCo Battery Materials Inc., a Surrey, British Columbia-based lithium-ion battery recycler, has signed an amended and restated joint venture agreement with Taiwan-based collaborator Zenith Chemical Corp. in order to expedite the setup of the joint venture.

Under the amended agreement, the companies say they will make cash contributions to the joint venture vehicle in accordance with a revised schedule which will facilitate approval by the Taiwanese regulatory authorities. The amended agreement will not alter the economic substance of the original agreement as all other terms will remain the same, including the 50/50 ownership of the joint venture by the two companies.

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In June, the companies announced a joint venture to build a 2,000 metric-ton-per-year lithium-ion battery recycling plant in Taiwan. The initial plant was estimated to cost $25 million.

RecycLiCo says its management has recently visited the site of the companies’ future plant in Taiwan, in addition to holding extensive discussions with Zenith on the technical and business aspects of the plant’s design and construction. The parties also have identified several battery market opportunities and collaborators that promote the completion of the plant.

“We are very pleased with the progress of the joint venture, and excited by the prospect of a ramp-up in the near future,” RecycLiCo CEO Zarko Meseldzija says.

RecycLiCo says the commercial plant, once completed, will utilize its advanced hydrometallurgical recycling process to convert approximately 2,000 tons of black mass per year into battery-grade lithium carbonate (Li2CO3), lithium hydroxide (LiOH) and precursor cathode active material (pCAM) for future lithium-ion battery manufacturing.

Zenith specializes in the production of nickel-based chemicals, including high-purity nickel sulfate for lithium-ion batteries.