Battery recycler Li-Cycle nears SPAC deal to go public: Sources

Founded in Toronto in 2016, Li-Cycle recycles end-of-life lithium-ion batteries that power products such as electric cars, medical equipment and smartphones.
By : Reuters
| Updated on: 16 Feb 2021, 10:08 AM
A recycling symbol sits on a lithium-ion battery pack of a Volkswagen e-Golf electric automobile. (Bloomberg)
A recycling symbol sits on a lithium-ion battery pack of a Volkswagen e-Golf electric automobile. (Bloomberg)
A recycling symbol sits on a lithium-ion battery pack of a Volkswagen e-Golf electric automobile. (Bloomberg)
A recycling symbol sits on a lithium-ion battery pack of a Volkswagen e-Golf electric automobile.

Li-Cycle Corp, a recycler of lithium-ion batteries, is nearing a deal to go public through a merger with blank-check acquisition company Peridot Acquisition Corp at a valuation of about $1.7 billion, according to people familiar with the matter.

The deal could be announced as early as Tuesday, the sources said, requesting anonymity ahead of an official announcement. It represents a bet on the growing market for recycling used batteries, as well on the rising demand for lithium-ion power sources for new technologies such as electric vehicles.

Founded in Toronto in 2016, Li-Cycle recycles end-of-life lithium-ion batteries that power products such as electric cars, medical equipment and smartphones. Its investors include Moore Strategic Ventures and CC Industries.

Similar Cars

Find More Cars
Hyundai Kona Electric (HT Auto photo)
Hyundai Kona Electric
cc | Electric | Automatic
₹23.79 - 23.98 Lakhs**Ex-showroom price
Datsun Redi-go (HT Auto photo)
Datsun Redi-go
799 cc | Petrol | Manual | 20.71 kmpl
₹3.58 - 4.99 Lakhs**Ex-showroom price
Datsun Go (HT Auto photo)
Datsun Go
1198 cc | Petrol | Manual | 19.02 kmpl
₹3.99 - 6.56 Lakhs**Ex-showroom price
Datsun Go-plus (HT Auto photo)
Datsun Go-plus
1198 cc | Petrol | Manual | 19.02 kmpl
₹4.2 - 7.05 Lakhs**Ex-showroom price
Maruti Suzuki S-presso (HT Auto photo)
Maruti Suzuki S-presso
998 cc | Petrol | Manual | 21.4 kmpl
₹3.78 - 5.45 Lakhs**Ex-showroom price
Renault Kwid (HT Auto photo)
Renault Kwid
799 cc | Petrol | Manual | 25 kmpl
₹4.07 - 5.51 Lakhs**Ex-showroom price

(Also read | Mining billionaire targets EV boom with lithium play)

The volume of end-of-life batteries is expected to reach 1.2 million tons in 2025 and 3.5 million tons in 2030, according to market research firm IHS Markit.

Peridot is a special purpose acquisition company (SPAC) led by investment firm Carnelian Energy Capital Management. It raised $300 million in an initial public offering (IPO) on the New York Stock Exchange in September.

A SPAC is a shell company that raises money in an IPO to merge with a privately held company that then becomes publicly traded as a result. SPACs have emerged as a popular IPO alternative for companies, providing a path to going public with less regulatory scrutiny and more certainty over the valuation that will be attained and funds that will be raised.

First Published Date: 16 Feb 2021, 10:08 AM IST
Recommended For You
View All
NEXT ARTICLE BEGINS

Please provide your details to get Personalized Offers on

Choose city
+91 | Choose city
Choose city
Choose city
By clicking VIEW OFFERS you Agree to our Terms and Privacy Policy

Dear Name

Please verify your mobile number.

+91 | Choose city