The following is a summary of the Li-Cycle Holdings Corp. (LICY) Q2 2024 Earnings Call Transcript:

Financial Performance:

• Li-Cycle reported record quarterly revenue of $8.4 million, a 133% increase, driven by higher recycling revenue and favorable pricing adjustments.

• Cost of sales decreased by 4% to $19.4 million compared to the previous year, while SG&A expenses decreased by 39% to $15.3 million due to cost-saving measures.

• Cash and cash equivalents stood at $57 million, down from $109.1 million in the previous quarter.

Business Progress:

• Progress on the Rochester Hub project with $490 million estimated remaining costs, focusing on the MHP scope.

• Shutdown of Ontario Spoke to prioritize Generation 3 facilities and secured ISO certification for Germany Spoke.

• Announced a recycling partnership with Daimler Truck North America and advancements in Spoke network optimization.

Opportunities:

• Expanding market for recycling of all forms of lithium-ion batteries, driven by increasing EV adoption and gigafactory growth, with projected up to six-fold supply increase by 2030.

• Localization trends supported by policies like the U.S. Inflation Reduction Act and potential tariffs, benefiting domestic recycling capacities.

• Collaboration with DOE for a loan to further enhance growth prospects.

Risks:

• Current soft market conditions for metals like nickel, cobalt, and lithium impacting pricing and project economics, though diversification in metals helps mitigate risks.

More details: LI-CYCLE IR

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