SURREY, British Columbia, June 12, 2023 (GLOBE NEWSWIRE) -- RecycLiCo Battery Materials Inc. (“RecycLiCo”), a battery materials company specializing in the development of novel and environmentally friendly lithium-ion battery recycling and upcycling technologies, is pleased to announce it has entered a 50-50 joint venture with Zenith Chemical Corporation (“Zenith”) to build a 2,000 metric ton per year lithium-ion battery recycling plant in Taiwan. The initial plant, estimated to cost US$25 million will be dedicated to processing and converting lithium-ion battery waste into valuable resources such as lithium-ion battery precursor cathode active material, lithium hydroxide monohydrate, and lithium carbonate.
The parties have agreed to build their first commercial scale battery recycling facility and contribute 50% of the required capital in three initial stages, with the balance being advanced as required to fund construction and start-up costs. The Zenith contribution (50%) will be funded in cash and RecycLiCo will receive a 10% interest in the joint venture company in return for a license of its technology, with the balance (40%) of its interest in cash.
In building the first commercial battery recycling plant, based on RecycLiCo’s technology, the joint venture combines the extensive expertise, resources, and novel technology of both RecycLiCo and Zenith. The joint venture facility will leverage RecycLiCo’s lithium-ion battery recycling process and Zenith’s existing land, infrastructure, and labor resources in Taiwan.
Since signing a Memorandum of Understanding ("MOU") in February 2022, RecycLiCo and Zenith have successfully collaborated with a leading battery materials company to validate the RecycLiCo process and to confirm the quality of its high-nickel cathode precursors and lithium chemical products.
Zenith specializes in the production of nickel-based chemicals, including high-purity nickel sulfate for lithium-ion batteries. Zenith’s products have gained recognition and qualification from major cathode producers worldwide. Zenith also has a shareholding partnership with Hanwa Co., Ltd, a large publicly traded Japanese distribution company known for its expertise in lithium-ion battery-related materials. Additionally, Zenith collaborates, through a joint venture, with Central Glass Co., Ltd., a leading Japanese publicly traded company specializing in fluorine-based chemicals and cater to the semiconductor and lithium-ion battery markets.
Zarko Meseldzija, CEO of RecycLiCo, comments, "By leveraging our collective strengths and expertise, we are confident in our ability to make a significant impact in the battery recycling industry, supporting the circular economy, and demonstrating the efficiency of our process on a commercial scale. This partnership signifies a crucial step forward in our business plan and represents an exciting opportunity for the battery recycling landscape."
Paul Hildebrand, Chairman of RecycLiCo, added: "Zenith is an ideal partner for our first joint venture on several levels. They have deep technical expertise in chemical processing, and established infrastructure, which will enable us to move swiftly and efficiently toward production. Zenith has extensive contacts in the lithium-ion battery field, and as a private company, they possess a dynamic and flexible management team capable of reacting quickly to emerging opportunities. I extend my gratitude to the management teams from both Zenith and RecycLiCo for their commitment and dedication in bringing this agreement to fruition."
James Fang, Chairman of Zenith Chemicals, comments, “I am pleased to announce our joint venture and look forward to working closely with RecycLiCo to establish the first commercial recycling plant in the world, based on RecycLiCo’s proprietary technology.”
As an incentive to enter the joint venture, RecycLiCo will receive a royalty on net product sales and Zenith will receive 4,000,000 RecycLiCo shares and 6,000,000 share purchase warrants. The warrants will have a five-year term, and an exercise price based on the weighted average trading price for the 30-day period preceding the agreement. All securities issued under the joint venture agreement will have a four-month hold period, and the joint venture agreement is subject to acceptance by the TSX Venture Exchange and Investment Commission, Ministry of Economic Affairs of the Republic of China (“ICMOEA”).
About RecycLiCo
RecycLiCo Battery Materials Inc. is a battery materials company specializing in sustainable lithium-ion battery recycling and materials production. RecycLiCo has developed advanced technologies that efficiently recover battery-grade materials from lithium-ion batteries, addressing the global demand for environmentally friendly solutions in energy storage. With minimal processing steps and up to 99% extraction of lithium, cobalt, nickel, and manganese, the patented, closed-loop hydrometallurgical process turns lithium-ion battery waste into battery-grade cathode precursor, lithium hydroxide, and lithium carbonate for direct integration into the re-manufacturing of new lithium-ion batteries.
Zenith Chemical Corporation, a Taiwanese company, specializes in the production of nickel-based chemicals, including high-purity nickel sulfate for lithium-ion batteries. With a strong focus on serving the lithium-ion battery industry, Zenith's products have gained recognition and qualification from major cathode producers worldwide. The company also has a shareholding partnership with Hanwa Co., Ltd, a large publicly traded Japanese distribution company known for its expertise in lithium-ion battery-related materials. Additionally, Zenith collaborates, through a joint venture, with Central Glass Co., Ltd., a leading Japanese publicly traded company specializing in fluorine-based chemicals and cater to the semiconductor and lithium-ion battery markets.
For more information, please contact:
Teresa Piorun
Senior Corporate Secretary
Telephone: 778-574-4444
Email: InvestorServices@RecycLiCo.com
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. This news release may contain "forward-looking statements", which are statements about the future based on current expectations or beliefs. For this purpose, statements of historical fact may be deemed to be forward-looking statements. Forward–looking statements by their nature involve risks and uncertainties, and there can be no assurance that such statements will prove to be accurate or true. Investors should not place undue reliance on forward-looking statements. The Company does not undertake any obligation to update forward-looking statements except as required by law.
