Li-Cycle Holdings Corp. (Li-Cycle), an industry provider of lithium-ion battery resource recovery and lithium-ion battery recycler in North America, and VinES Energy Solutions (VinES), announced that they have signed a definitive agreement for a long-term recycling relationship. According to the signed Agreement, from 2024, Li-Cycle will become VinES’ strategic and preferred recycling partner for VinES’ Vietnamese-sourced battery materials.
What are the specifics of the agreement?
Consistent with Li-Cycle’s strategy for growing recycling capacity in conjunction with customer demand, the Agreement further contemplates the possible construction of a dedicated Spoke located close to VinES’ manufacturing site. The potential Spoke has the opportunity to benefit from the growing demand for lithium-ion battery recycling solutions, driven by strong economic growth and an increasing manufacturing presence in Vietnam.
An investment decision regarding the dedicated Spoke facility is expected to be made in 2025. In the meantime, Li-Cycle will facilitate the processing of VinES’ material utilizing Li-Cycle’s North American Spoke network. To build on a partnership first announced in October 2022, VinES and Li-Cycle will also continue to explore global recycling solutions for VinFast, the first global electric vehicle (EV) manufacturer in Vietnam and Southeast Asia.
The firm recently commissioned a lithium-ion battery cell manufacturing facility in Hai Phong, Vietnam, and expects to further expand its production capacity in the country. Li-Cycle opened an office in Singapore in December 2022 to support its connectivity to the Asia market and its efforts to expand its commercial relationships with Asia-based manufacturers.
What does the partnership mean for VinES?
“By recycling battery production scrap and used batteries into the global mobility and energy storage industries, we can achieve a sustainable supply chain while reducing environmental impacts. We believe the strategic collaboration will strongly accelerate both companies’ missions of creating a sustainable future for all,” said Ms. Pham Thuy Linh, CEO of VinES.
VinES and VinFast are part of Vingroup, the largest private conglomerate in Vietnam, and are leaders in the global movement towards electrified transportation. VinFast has expanded its business to the North America and Europe with the aim to become one of the leading global EV manufacturers. VinES is a company that specializes in the research, development, and manufacturing of advanced batteries for mobility and energy storage applications.
What does the partnership mean for Li-Cycle?
Commenting on the partnership, Tim Johnston, co-founder and Executive Chair of Li-Cycle, said, “We are pleased to advance our collaboration with VinES and become its strategic recycling partner for all batteries and battery materials generated by VinES in Vietnam.”
“This Agreement supports our shared goals of creating a sustainable and closed-loop battery supply chain. It also advances Li-Cycle’s position as the industry’s preferred global recycling partner as we continue to strengthen our commercial relationships and scale our innovative and environmentally friendly battery recycling technologies around the world,” he added.
Commenting on the partnership, Dawei Li, Li-Cycle Regional President, APAC region, said, “Our office in Singapore represents an important connection point to Asia, and we are excited to continue expanding Li-Cycle’s global footprint. We look forward to supporting VinES’ recycling needs and strengthening our commercial relationships in this important market.”