Li-Cycle Reports Full Year 2024 Financial Results
Li-Cycle Holdings Corp., a leading global lithium-ion battery resource recovery company, has released its financial results for the fiscal year ended December 31, 2024. The company has shown significant progress in revenue growth and cost management, despite facing challenges in its operational and financial landscape.
Financial Highlights
For the fiscal year 2024, Li-Cycle reported a total revenue of $28.0 million, marking a 53% increase from $18.3 million in 2023. The company also managed to decrease its total expenses by 13% year-over-year, primarily due to cash preservation initiatives. However, the net loss remained relatively stable at approximately $137.7 million, compared to $138.0 million in the previous year. Adjusted EBITDA loss improved significantly to $90.5 million from $156.4 million in 2023.
Business and Operational Highlights
Li-Cycle's revenue from product sales and recycling services increased to $27.3 million, a 16% rise from $23.6 million in 2023. This growth was driven by new service contracts and higher volumes sold. The company also reported a decrease in cost of sales to $76.6 million from $81.8 million in 2023, attributed to lower material costs and inventory adjustments.
Strategic Initiatives and Corporate Developments
In 2024, Li-Cycle secured a $475 million loan facility from the U.S. Department of Energy to finance its Rochester Hub project. The company also advanced optimization initiatives at its Spoke business. However, the construction of the Rochester Hub has been paused, impacting capital expenditures, which declined to $23.9 million from $334.9 million in 2023.
Additionally, the company's special committee of independent directors is evaluating financial and strategic alternatives, including a potential transaction with Glencore, which expressed interest in Li-Cycle on March 14, 2025.
Management's Perspective
Ajay Kochhar, Li-Cycle’s President & CEO, stated, “In 2024, we advanced key priorities for the Company, including closing our $475 million loan facility with the U.S. Department of Energy to help finance our Rochester Hub project and advancing optimization initiatives at our Spoke business. We believe we are well-positioned to support, and are aligned with, the energy priorities of the U.S. government as they look to bolster and onshore the energy supply chain through the domestic production of critical minerals. Looking ahead, we are focused on managing our cash position while considering our financial and strategic alternatives.”
Future Outlook
Li-Cycle's future outlook remains uncertain as the company requires additional financing to meet its obligations and continue operations. The special committee is exploring strategic alternatives, including a potential transaction with Glencore. The company has also highlighted the risk of needing to significantly modify or terminate its operations if additional financing is not secured.
SEC Filing: Li-Cycle Holdings Corp. [ LICY ] - 8-K - Mar. 31, 2025