On May 2, 2025, Li-Cycle Holdings Corp., a Toronto-based battery-recycling company, announced it is exploring a sale and may seek bankruptcy protection following the collapse of a potential acquisition by Swiss commodities giant Glencore PLC. The decision marks a sharp decline for the former cleantech star, which has suspended operations at its U.S. recycling facilities in Arizona and Alabama and is laying off 117 employees, including 32 at its Toronto headquarters. CEO Ajay Kochhar will step down and resign from the board, staying on as an adviser during the sale process. William Aziz has been appointed Chief Restructuring Officer, bringing experience from past roles at Walter Energy Canada and U.S. Steel Canada.

The company is also replacing CFO Craig Cunningham with interim CFO Michelle Faysal. Li-Cycle’s stock plummeted 63% to US$0.11 (approx. C$0.15), reflecting a 98% drop over the past year. A key factor was the suspension of its US$960 million (approx. C$1.32 billion) Rochester, NY project, despite a US$475 million (approx. C$654 million) loan package from the U.S. Department of Energy that remains untapped due to unmet conditions.

Glencore, a major investor, had proposed a deal to stabilize Li-Cycle’s capital structure, but terms acceptable to both parties could not be reached. No legal advisors were publicly disclosed in relation to the ongoing restructuring or failed Glencore negotiations. The company warns it may have to liquidate its assets or file for insolvency without a successful transaction.