On May 5, 2022, Glencore announced its strategic partnership with Li-Cycle Holdings Corp., a leader in lithium-ion battery recycling in North America, by subscribing for CAD 260 million ($200 million) of convertible debt. The collaboration was designed to position Li-Cycle as a preferred partner, with the transaction expected to close in the second quarter of 2022. Upon completion, Glencore would gain the right to convert the debt into an approximate 10% equity stake in Li-Cycle and nominate a board member, specifically Kunal Sinha. The partnership's commercial framework included Glencore procuring feedstock for Li-Cycle’s facilities, offtake agreements for black mass and end products, and supplying sulfuric acid for Li-Cycle’s operations. This alliance is part of Glencore's broader strategy to establish regional platforms for localizing battery raw material supply chains, enabling partners to connect and scale sustainably. Glencore aims to combine primary and recycled battery raw materials to support auto manufacturers in meeting EV production goals and regulatory directives. It also plans to repurpose its European assets to accelerate industrial-scale production of battery-grade materials and, along with supply chain partners, produce precursor cathode active material in Europe and potentially North America. This move is in line with Glencore’s Net Zero total emissions reduction strategy and its ambition to foster a circular economy by reintegrating recycled materials into the battery supply chain, thus furthering energy and mobility transition goals.