Ajay Kochhar sees Li-Cycle as largest lithium-ion battery recycler
LI-CYCLE, A CANADIAN COMPANY CO-FOUNDED BY AJAY KOCHHAR, PLANS TO BECOME NORTH AMERICA’S LARGEST LITHIUM-ION BATTERIES RECYCLER
This article was first published by Global Indian Times on March 3, 2021
https://www.globalindiantimes.com/globalindiantimes/2021/3/3/licycle-ajay-kochhar
March 3, 2021
Li-Cycle plans to become North America’s largest recycler of lithium-ion batteries. Its patented technology recovers materials, including lithium carbonate, nickel sulphate and cobalt sulphate, from battery manufacturing scrap and used batteries, for reuse in making new batteries. Co-founded in 2016 by Ajay Kochhar and Tim Johnston,.the company is based in Mississauga, near Toronto, Canada.
The company’s two plants, one in Ontario, Canada and the other in Rochester, New York, recovers 95% of the metals, at a lower cost than mined materials and with less environmental impact than competing techniques, says Ajay Kochhar who ia the chief executive,.
The lithium-ion battery recycling business benefits from three major trends: rising demand for electric vehicles, many of which use such batteries; a shortage of critical lithium-ion baCttery materials; and environmentally friendly operations.
Last month, Li-Cycle announced that it will merge with Peridot Acquisition, a U.S. blank-check company. Following the merger, which is expected to close in the second quarter of this year, Li-Cycle will receive $615 million and will be valued at $1.7 billion.
“The capital raised in this transaction will fully fund our planned global growth,” Kochhar said. Li-Cycle plans to soon set up 18 more recycling plants, Kochhar told CNBC today. The company projects its revenues will compound rapidly to reach $985 million in 2025.
Investors in Li-Cycle include Traxys, its global marketing and sales partner, Franklin Templeton funds and Mubadala Capital, the $232 billion sovereign investment fund of the United Arab Emirates.
Li-Cycle operates with a spokes and hub system: spokes are decentralized facilities which mechanically process batteries close to the sources of supply while hubs are centralized facilities for large-scale production of specialty materials to achieve economies of scale.
The non-thermal process, used by Li-Cycle, does not require high temperatures, produces no wastewater and generates low level emissions. The process releases roughly 1.8 tons of greenhouse gas emissions for every ton of battery produced, compared to 6.8 tons to mine and refine the same battery metals, Kochhar told The Financial Post.
The recycler has contracts for securing scrap and used batteries with more than 40 suppliers, including 14 of the largest automotive battery manufacturers around the world. Currently scraps account for about two-thirds of its feedstock.
Co-founders Ajay Kochhar and Tim Johnston were colleagues at Hatch, a Canadian engineering consultancy, with over 9,000 professionals worldwide. At Hatch, the two of them helped mining companies build hydro-metallurgical plants to produce lithium and cobalt. Born in Brisbane, Australia, and now a Canadian, Johnston earned a degree in mechanical engineering from the University of Queensland.
Kochhar gained business experience from a young age working for his family’s Ashlin BPG Marketing. Based in Mississauga, Canada, Ashlin supplies leather bags, including for phones and tablets.
While he was at Hatch, Kochhar’s technical experience covered the entire project lifecycle of mines, from conceptual and pre-feasibility studies to construction and commissioning. He also evaluated hundreds of lithium projects for potential acquisition by a key lithium producer.
Kochhar was born and raised in the Greater Toronto Area, Canada. He earned a degree in chemical engineering from the University of Toronto. He enjoys playing the classical guitar.
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