Li-Cycle Holdings, a lithium-ion battery resource recovery company, has announced a pause in construction work on its Rochester Hub project in New York. The company made this decision pending the completion of a comprehensive review.
Li-Cycle Holdings' shares were down 14% to $1.96 in premarket trading following this news. The stock had closed Friday down 4.2% at $2.27 and has experienced a decline of about 52% for the year.
Previously, Li-Cycle Holdings had stated that the engineering and procurement aspects of the Rochester Hub project were largely complete. The company had been focusing on construction activities on site.
Due to mounting construction costs, Li-Cycle Holdings now expects the cost for the current scope of the project to exceed its previous estimates. Consequently, the company's board of directors has decided to halt construction work on the Rochester Hub until the project can be reviewed thoroughly.
Innovation in Battery Resource Recovery
The Rochester Hub is referred to as the first commercial hydrometallurgical battery resource recovery facility. Additionally, it is expected to be the primary source of recycled battery-grade lithium carbonate production in North America. The commissioning for this groundbreaking facility was originally planned for late 2023.