Li-Cycle, a lithium-ion battery recycling company, completed a $50 million aggregate investment in common shares from LG Energy Solutions (LGES) and LG Chem (LGC).
Following the investment, LGES and LGC collectively hold 5,300,352 Common Shares, representing approximately 3% of the issued and outstanding Common Shares in the company’s capital.
Both LGES and LGC have each subscribed for an equal number of Common Shares at an average subscription price of $9.43 per Common Share.
Under the terms of the Subscription Agreements, which LGES and LGC entered into on December 13, 2021, were amended and restated on April 21, 2022, and the investment was split into two tranches.
The initial tranche consisted of 4,416,960 Common Shares at $10.00 per share, amounting to approximately $44.2 million. The second tranche contained 883,392 Common Shares at $6.60 per share, amounting to approximately $5.8 million.
Earlier this month, Li-Cycle received $200 million in investment from Glencore, a commodity trading and mining company, to supply manufacturing scrap and end-of-life lithium-ion batteries.
In Q3 2021, Li-Cycle received a $100 million investment from Koch Investments Group by purchasing a convertible note to support the company’s rapidly expanding growth opportunities in North America, Europe, and Asia.
According to Mercom’s Q1 2022 Funding and M&A Report for Storage, Grid & Efficiency, total corporate funding (including VC, Debt, and Public Market Financing) in Battery Energy Storage came to $12.9 billion in 26 deals compared to $4 billion in 27 deals in Q4 2021. Funding increased significantly year-over-year compared to $4.7 billion in 18 deals in Q1 2021.