Lithion Recycling secures up to C$125m in initial Series A

Lithion Recycling, a Montreal-based recycler of lithium-ion batteries, has initially closed its Series A financing, raising up to C$125 million.

Lithion Recycling, a Montreal-based recycler of lithium-ion batteries, has initially closed its Series A financing, raising up to C$125 million. A group of investors was led by IMM Investment Global and supported by Fondaction and its LCC Fund. The proceeds will be used for construction of Lithion’s first lithium-ion battery recycling plant and a state-of-the-art technology development center.

PRESS RELEASE

January 24, 2022

MONTREAL–(BUSINESS WIRE)–Lithion Recycling Inc. (“Lithion” or the “Company”) is proud to announce it has reached financial close of a first tranche of Series A equity with a strategic group of investors led by IMM Investment Global Limited (“IMM Global”) and supported by Fondaction and its managed fund, the LCC Fund. The size of the first round is expected to reach up to C$125 million. IMM Global will join the Company’s Board of directors as a result of their significant investment.

With this new capital, Lithion moves forward with three pivotal parts of its industrialization plan which are the construction and commissioning of its first commercial mechanical separation plant (“Spoke”) in Quebec; the construction and opening of a state-of-the-art Technology Development Center (“TDC”) to continuously develop Lithion’s technology for future battery chemistries and battery materials specifications; and the completion of detailed engineering studies in advance of the near-term start of construction of Lithion’s Quebec-based hydrometallurgy plant (“Hub”).

With today’s announcement, Lithion enters the commercial phase of its development and will continue the Company’s journey to close the loop on battery materials with the full support of its investors and partners. The 7,500 metric tons per year capacity Spoke and the TDC will create close to 100 jobs in Quebec and will support the global deployment of Lithion’s technology through licensing agreements.

Ancoris Capital Partners acted as financial advisor and Norton Rose acted as legal advisor to Lithion in the transaction.

“This is a crucial moment in Lithion’s history. Our eco-friendly technology can be implemented all over the world to address the global challenge of energy transition. We are proud to partner with IMM Global as well as with Fondaction who both fully support the construction of this plant and our Technology Development Center as well as further development of Lithion’s technology and expertise. Lithion is deeply rooted in Quebec and will play a significant and crucial role in the future of the province’s battery and EV sectors. Furthermore, we are engaged in ongoing discussions with additional investment partners who wish to be part of this financing round.”
– Benoit Couture, President and CEO of Lithion Recycling, Inc.

“IMM Investment Global is thrilled to take the important first step into the EV battery value chain through its strategic investment into Lithion. We have a deep conviction in Lithion’s technology and in its potential to penetrate the global recycling market where Korean battery players have a strong presence. Having successfully launched IMM Global Battery Fund I and IMM Clean Energy Transition Fund I in 2021, IMM Global will join forces with Lithion to materialize this potential in the global battery value chain.”
– Youngjoon Lee, Managing Partner & CEO of IMM Investment Global Limited

“Lithion’s positive impact potential is colossal, as its technology makes it possible to recycle more than 95% of the strategic metals contained in the batteries of electric vehicles, thereby preventing the negative effects of their extraction. Fondaction enthusiastically supports the deployment of this Quebec innovation, which gives the electrification of the transportation industry a circular economy approach.”
– Stéphane Morency, Vice President & Chief Investment Officer at Fondaction

About Lithion Recycling Inc.
Lithion has developed an efficient and cost-effective process to recover strategic materials from end-of-life and product waste of lithium-ion batteries. Lithion’s process allows up to 95% of battery components to be recovered and treated so that they can be reused by battery manufacturers, enabling to close the lifecycle in batteries. This technology accelerates the transition to green energy and helps meet decarbonization targets by reducing pressure on natural resource extraction. This year, Lithion launches its first commercial recycling operations, drawing on data from a highly successful Quebec industrial-scale demonstration plant commissioned in January 2020. Its goal is worldwide deployment, through licensing agreements, with a target of 25 recycling plants on a world scale by 2035. For more information, please visit: https://www.lithionrecycling.com/