Li-Cycle's Financial Woes Threaten Rochester Hub Project
Originally Published 2 years ago — by Rochester Business Journal
Li-Cycle, a lithium-ion battery recycling company, is facing financial troubles with paltry revenue, disproportionate spending, and mounting debt. Financial analyst George Conboy predicts that the company may go bankrupt within six months. Li-Cycle's Rochester Hub, a battery recycling facility, may never be completed due to escalating construction costs. The company is seeking additional financing and time to secure a conditional loan from the Department of Energy. Li-Cycle has hired an investment banking firm to evaluate financing and strategic alternatives, indicating a potential bankruptcy filing. An impairment assessment revealed a $96.5 million write-down on the Rochester Hub, suggesting a lack of value in the project. Li-Cycle's future in Rochester appears bleak, and its stock has fallen. A class-action lawsuit has been filed against the company for alleged misleading statements.