Li-Cycle Provides Recycling Solutions to Growing BESS Market, supporting AI Technologies in the U.S

Li-Cycle has partnered with major battery energy storage system (“BESS”) companies across the U.S. to provide expert lithium-ion battery recycling services.

The Company’s BESS partners are an important part of Li-Cycle’s recycling feedstock mix. In 2024, Li-Cycle recycled the equivalent of more than 100 MWh of energy from its BESS partners, which was a 33% increase over the previous year. During Q4 2024, BESS accounted for approximately 27% of the Company’s recycling feedstock in the U.S.

The U.S. energy storage market is expected to almost double from 34.4 GWh in 2024 to approximately 67.5 GWh in 2028, largely driven by grid-scale applications. By recycling BESS and recovering critical materials in the U.S., Li-Cycle supports domestic energy independence and the onshoring of the energy supply chain.

Two examples below illustrate the end-to-end value offering that Li-Cycle delivers to its BESS partners:

Safely Recycling Hazardous Material for a BESS Customer
Li-Cycle received and processed battery modules from a BESS customer that were severely damaged. The modules were shipped as hazardous waste, underscoring the critical need to process the material quickly to maintain compliance and mitigate risk. All modules were received and processed safely and quickly at Li-Cycle’s Arizona Spoke, providing a strong level of service and value-add to Li-Cycle’s BESS customer.

Helping an Environmental Services Company Meet an Urgent Deadline
Li-Cycle assisted an environmental services company to receive and recycle hundreds of tonnes of modules, which was the equivalent of approximately 60 MWh, from a battery energy storage site. Through the Company’s safe and efficient operational process, Li-Cycle was able to empty and reuse crates while working against a critical timeline to avoid impending winter weather that would impact the energy storage site’s availability and working conditions. Li-Cycle met the BESS customer’s urgent schedule, enabling the timely completion of this large-scale project.