Dive brief:
- Li-Cycle Holdings, a Toronto-based battery recovery company that secured major funding pledges from the US government, put its $500 million battery hub on hold in Rochester, New York, citing rising construction costs.
- The recycler is conducting a comprehensive review of the project’s strategy moving forward, it said in an Oct. 23 press release. Engineering and procurement activities are complete, the company said, and construction was underway at the time of the work freeze.
- Li-Cycle did not give a timeline for the review process, or a date when construction would resume. The company’s third-quarter earnings call will take place on November 13, where a representative said Li-Cycle would reveal more details about the project and its plans.
Diving knowledge:
Li-Cycle received a $375 million loan commitment from the Department of Energy through the Advanced Technology Vehicle Manufacturing Program for the project, according to the release. The company said it continues to work closely with the DOE regarding the funding.
In addition, the project received funding pledges from Monroe County, where Rochester is located, according to News10NBC. However, area congressman Joe Morelle confirmed to the company that neither local nor federal funding had been disbursed at that time.
This installation is part of a trend of delayed manufacturing projects.
In September, battery maker American Battery Factory postponed construction of its $1.2 billion lithium phosphate battery factory in Tucson, Arizona, until November. This follows TSMC’s July announcement, where the company revealed it was delaying the opening of its high-profile Arizona chip factory until 2025, citing labor issues.
