SURREY, British Columbia, July 12, 2023 (GLOBE NEWSWIRE) -- RecycLiCo Battery Materials Inc. (“RecycLiCo” or the “Company”) is pleased to announce that the TSX Venture Exchange (the “Exchange”) has provided acceptance of the joint venture agreement (the “Agreement”) between the Company and Zenith Chemical Corporation (“Zenith”).
Under the Agreement, RecycLiCo and Zenith will enter into a 50-50 joint venture to build a 2,000 metric ton per year lithium-ion battery recycling plant in Taiwan. The plant, estimated to cost US$25 million, will use RecycLiCo’s proprietary process to convert lithium-ion battery waste into lithium-ion battery cathode precursor, lithium hydroxide and other related products. As consideration for contributing half of the capital required, Zenith will hold a 50% interest in the joint venture. As consideration for contributing 40% of the capital required and granting a license for its technology, RecycLiCo will also hold a 50% in the joint venture.
As an incentive to enter the joint venture, RecycLiCo will receive a royalty on net product sales for the first eight years, while Zenith will receive 4,000,000 RecycLiCo shares and 6,000,000 share purchase warrants (which will not be exercisable until the 30th day following the date on which construction of the recycling plant is completed). The warrants will have a five-year term, and an exercise price of $0.35 per share. All securities issued under the Agreement will have a four-month hold period.
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.
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Senior Corporate Secretary
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.