ROCHESTER, N.Y. (WROC) — Li-Cycle announced that they will be halting construction on the Rochester Hub due to a review of the strategy for the facility.
According to Li-Cycle, the Board of Directors is evaluating the project moving forward after the costs for construction have gone up. The board is looking into the scope and budget for the project.
The company added that the engineering and procurement are mostly complete and that they are focusing on construction activities for the facility. They said they would be working with the Department of Energy for the project review.
In a statement Wednesday, Li-Cycle emphasized they are fully committed to the development of the hub, and their vision has not changed.
“We feel this is a prudent pause, and we want to say again that we remain fully committed to Rochester and to the development of the Rochester Hub. We are completing a full review of the project, which includes an evaluation of the go-forward phasing of the project’s scope, budget, and construction strategy,” the statement read.
Both Congressman Joe Morelle and Monroe County Executive Adam Bello expressed their shock at the announcement of this pause.
“They are still committed to Rochester and building, they have a lot of money and resources invested in this site as well,” said Bello. “I spoke with the representative this morning and offered whatever assistance Monroe County can be.”
“We’re going to continue to work with them, but people should be assured: no public money has been involved and no public money is going to be involved until we get answers,” said Morelle. “Until we get back to the point when we’re doing construction and we’re back online.”
Last February, Li-Cycle was awarded a $375 million federal loan for the hub facility from the US Department of Energy. The hub aims to produce recycled materials for lithium-ion batteries and is slated to be the largest source of lithium in the nation.
In addition, the Rochester Hub is expected to create over 200 permanent jobs and over 1,000 jobs over the course of its construction. It will be located at the Eastman Business Park.
Li-Cycle will be releasing its financial results for the company’s third quarter on November 13, 2023.