Li-Cycle Holdings to Build Battery Recycling Plant in Alabama

Canadian company Li-Cycle Holdings Corp. constructs a new battery recycling facility in Tuscaloosa, Alabama. The project is an $ 18.7 million investment in land, buildings and equipment in the Tuscaloosa County Airport Industrial Park and is expected to create 78 jobs in the first three years of operation.

The Tuscaloosa facility is the company’s fourth commercial lithium-ion battery recycling facility, with the remaining three located in Kingston, Ontario; Rochester, New York; and Gilbert, Arizona. The Tuscaloosa plant is expected to be operational by mid-2022 and is expected to create the first 30 jobs.

When completed, the facility will have an initial capacity of up to 5,000 tonnes of end-of-life battery and battery manufacturing waste per year, bringing Li-Cycle’s total recycling capacity in North America to 25,000 tonnes. per year.

The Tuscaloosa plant is also being developed to accommodate a future second 5,000 tonne processing line, which would double the annual capacity of the facility.

“Our new plant in Alabama positions us well to meet the growing demand for recycling lithium-ion batteries,” said Tim Johnston, co-founder and executive chairman of Li-Cycle. “We originally planned to deploy three commercial Spoke facilities in North America over the next five years, with a total recycling capacity of 20,000 tonnes per year. However, the demand for recycling lithium-ion batteries continued to exceed our forecasts and we now expect a total recycling capacity of 30,000 tonnes per year. This facility is critical to filling a recycling gap in the Southeastern United States. Like our Arizona Spoke, we expect the new facility to have the capacity to process entire vehicle batteries without disassembly. “

The Tuscaloosa County Industrial Development Authority has approved a tax rebate program as part of the company’s investment. The company will benefit from a non-educational sales and use tax rebate for purchases of construction equipment and materials during the construction phase of the project and a rebate in non-educational ad valorem taxes on goods. real estate and personal for up to five years. . The estimated amount of eligible tax allowances is $ 1.2 million. In its first 10 years of operation, the project is expected to generate more than $ 1.2 million in tax revenue in the form of unreduced taxes, including school taxes and initial purchases. Over the next 20 years, TCIDA estimates that the project will contribute more than $ 8.1 million in company-generated taxes and direct employee expenses.

“We are delighted to be the future headquarters of Li-Cycle’s first site in the Southeastern United States,” said Mark Crews, President of TCIDA. “Our region is centrally located for automotive OEMs located in Alabama and neighboring states and we welcome the introduction of a business that will support the development of electric vehicle manufacturing in our region.”

Michael Goebel, President and CEO of Tuscaloosa County-based Mercedes-Benz US International said, “We have a responsibility not only to manufacture vehicles and batteries, but also to be good corporate citizens. in the choices we make to protect our environment and the community around us. We welcome the partnership between Univar Solutions and Li-Cycle and the strong commitment of our partners here in Tuscaloosa, Alabama, to promote sustainable future mobility.

Mercedes-Benz US International is working with Univar Solutions on end-of-life solutions for lithium-ion batteries.

Alabama Secretary of Commerce Greg Canfield said, “With electric vehicle production set to start in Alabama in 2022, Li-Cycle’s Tuscaloosa recycling facility will ensure that Alabama plays another important role in the life cycle of batteries powering electric vehicles. This project addresses the proposal for the reuse of the battery which must also be part of the sustainable development solution offered by electric vehicles. “