Target Information

Recyclage Lithion Inc. ("Lithion" or "the Company") has successfully closed the first significant tranche of a Series A financing round, which could total up to CAD 125 million. The investment is spearheaded by IMM Investment Global Limited ("IMM") with support from Fondaction and the LCC Fund. This financing will facilitate the construction of the first lithium-ion battery recycling plant in Quebec, as well as a state-of-the-art technology development center.

With the newly secured capital, Lithion will embark on three main phases of its industrialization plan. This includes the construction and commissioning of its first commercial dismantling and grinding facility ("Spoke") in Quebec; the establishment of an advanced technology development center ("CDT") to continually enhance Lithion's technology for future battery materials; and the finalization of engineering studies that will enable the upcoming construction of its hydrometallurgy plant ("Hub") in Quebec. This marks a pivotal transition for Lithion into the commercial phase of its development.

Industry Overview in Quebec

The lithium-ion battery recycling industry is vital in Quebec, which is strategically expanding its efforts to support sustainable practices. Quebec’s governmental policies have been favoring green technologies, promoting economic growth while mitigating environmental impacts. The province is increasingly positioning itself as a leader in the circular economy by focusing on recycling and reusing battery materials, which directly contributes to reducing landfill waste and preserving natural resources.

Moreover, Quebec is home to a number of innovative startups and established companies in the clean tech sector, which are actively seeking solutions for the challenges posed by the growing volume of electronic waste. This growth is fueled by the increasing demand for electric vehicles (EVs) and renewable energy storage systems, underlining the necessity for comprehensive recycling systems to handle end-of-life batteries efficiently.

Furthermore, in the context of Canada’s commitment to achieving net-zero emissions by 2050, the battery recycling industry is expected to play a significant role. Local initiatives aim to boost the recycling rates for lithium-ion batteries and reduce reliance on raw materials, thus enhancing both environmental sustainability and economic resilience.

Investments in battery recycling not only align with global trends towards sustainability but also create job opportunities in the region. Lithion's operations are projected to create nearly 100 jobs in Quebec, contributing positively to the local economy.

Rationale Behind the Deal

The rationale for this significant financing round is rooted in the pressing need for sustainable recycling solutions amidst the rapid growth of the electric vehicle market. As battery production increases, so does the demand for effective recycling methods that can recover valuable materials and mitigate the negative environmental impacts associated with mining and waste disposal.

By leveraging this investment, Lithion can advance its unique technology that allows for the recovery of over 95% of strategic metals from lithium-ion batteries, positioning it as a pivotal player in the green transition. The funding will enable Lithion to realize its ambition of establishing a robust recycling infrastructure that not only meets local demand but also caters to global markets through licensing agreements.

Investor Information

IMM Investment Global Limited ("IMM") is the international investment arm of IMM Investment Corp., a leading investment organization in South Korea, managing nearly USD 5 billion in assets. Established in 2019, IMM Global has swiftly executed its strategy for global expansion across North America, Europe, and the Middle East, focusing on high-growth industries, including the battery value chain.

This strategic investment in Lithion reflects IMM's commitment to being at the forefront of the electric vehicle battery value chain. With a successful track record of establishing funds supporting clean energy initiatives, such as the Global Battery Fund I and the Clean Energy Transition Fund I, IMM is positioned to bolster the growth and development of Lithion’s innovative recycling solutions.

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The investment in Recyclage Lithion represents a proactive step towards addressing the significant challenges posed by battery waste and resource extraction. The company’s advanced technology, which enables the efficient recovery of battery materials, is aligned with the global push for sustainable practices in the energy and transportation sectors. This indicates strong potential for scalability and profitability in the near future, especially as EV adoption increases.

Furthermore, the involvement of reputable investors like IMM and Fondaction lends credibility to Lithion’s business model and growth prospects. Their commitment to sustainability and clean technology indicates a promising partnership that may enhance Lithion’s market reach and technological capabilities.

Overall, this deal not only signifies a solid financial foundation for Lithion’s ambitious recycling initiatives but also positions the company as an essential player in Quebec's transition towards a circular economy. As global focus intensifies on sustainability, Lithion’s role in mitigating the environmental impacts of battery waste could lead to substantial long-term returns for its investors.

In conclusion, Recyclage Lithion appears to be a strategic investment opportunity, driven by timely market needs and supported by a capable management team. As the company advances through its proposed phases, it stands to gain a competitive edge in an evolving market landscape.

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