ROCHESTER, N.Y. (WROC) — Li-Cycle has released financial results for its third quarter amid a pause in the construction of its Rochester facility.
The earnings report was released Monday afternoon. Some highlights from the battery recycler’s report:
- New construction estimates from Li-Cycle ranged from $850 million to $1 billion, this includes the cost of the Hub’s process buildings and warehouse of approximately $140M.
- On pace to lose over $250 million throughout the year
- Project to do $15 million sales
- Took a $96.5 million write off for the Rochester Hub
“They’re not the only institution that is dealing with overages for construction costs. It’s just whether or not your business can handle those, and I don’t believe that Li-Cycle can handle the overages,” said Ethan Wade, a financial expert at Brighton Securities.
These numbers reflect the year up until September 30, before the end of October pause in construction.
Their stocks also took a dive following the pause. At one point, the company was valued at $220 million, less than the $375 million dollar loan from the federal government. That loan has not been paid out.
“The numbers don’t add up,” Wade said, when asked whether or not Li-Cycle would be able to keep the loan.
This comes amid a class action lawsuit that was filed against Li-Cycle, which alleged that the company made misleading and incorrect statements and left out facts about the operations.
Li-Cycle declined an interview for this story, but offered a statement reiterating a sentence from their press release:
“With favorable supply and demand dynamics driving the need for domestic sources of battery material, we continue to see significant benefits for Li-Cycle’s Spoke & Hub network, and in particular, the market need for the Rochester Hub.”
“The Li-Cycle Rochester Hub holds substantial promise for fostering positive economic impacts, particularly in terms of job creation and the development of local businesses within our region. Greater Rochester Chamber is unwavering in its commitment to bolstering Li-Cycle through the challenges it faces. We have been in close touch with a principal involved in the project, as well as with Senator Schumer and Congressman Morelle who have both been incredible partners in this effort. Our dedication to supporting Li-Cycle remains steadfast, and we are hopeful for a favorable outcome.“
Bob Duffy, President & CEO, Greater Rochester Chamber of Commerce
