Introduction
Hello, this is Dodo Jjunyangyi, a dad striving to become wealthy.
The demand for electric vehicles (EVs) continues to rise steadily. Along with
this, the use of batteries is also surging rapidly. Looking toward the future,
unless a revolutionary new technology emerges, the ability to recycle existing
batteries will become increasingly critical. This is because the key raw
materials needed for battery production are finite resources.
Continuously manufacturing new batteries is bound to face limitations.
Therefore, battery recycling technology will inevitably become an essential
and fast-growing field within the constraints of resource availability.
In this context, I’ve explored Li-Cycle Holdings.
About Li-Cycle Holdings
Li-Cycle Holdings Corp. (NYSE: LICY) is a leading North American company
specializing in lithium-ion battery recycling. It possesses "circular economy"
technology that extracts valuable metals from electric vehicle batteries and
other lithium-ion battery waste. The company operates a large-scale refining
facility (Hub) in Rochester, New York, and multiple preprocessing facilities
(Spokes) in various locations to expand its battery recycling
infrastructure.
Li-Cycle has expanded its recycling partnerships through collaborations with
Daimler Truck North America. Additionally, it has secured equity investments
and strategic partnerships with LG Chem and LG Energy Solution, aiming to
build a sustainable resource recycling ecosystem and ensure a stable supply of
battery materials.
Investment Metrics
- Market Cap: 87 million USD
- PBR: 0.3x
- PER: -0.3x
- ROE: -82.7%
- PSR: 4.7x
Financial Summary
- Revenue: 8.9 million USD
- Operating Profit: -28.7 million USD
- Net Profit: -8.7 million USD
Revenue Breakdown
- Black Mass & Scrap: 68.9%
- Recycling Services: 31.2%
※Note
Black Mass is a crucial intermediate material generated during the
recycling process of end-of-life lithium-ion batteries. In this process,
batteries are physically shredded and separated, resulting in a powdered form
called "Black Mass." It contains concentrated valuable metals such as nickel,
cobalt, lithium, and manganese, which are key components of batteries.
Using processes like hydrometallurgy, these metals can be extracted into
high-purity forms, which can then be reused in manufacturing new batteries.
This plays a vital role in resource recycling and environmental
conservation.
Lithium-Ion Bateery Consumption Trends
The consumption of lithium-ion batteries is skyrocketing worldwide. In 2022,
battery demand was approximately 700 GWh, and it is expected to grow to 4,700
GWh by 2030. The widespread adoption of electric vehicles is the primary
driver behind this surge, highlighting the role of lithium-ion batteries as a
core technology for sustainable transportation.
The major markets for battery consumption include the Asia-Pacific region and
Europe, with significant adoption in China and Europe. In addition, industries
such as energy storage systems, consumer electronics, and data communication
are also experiencing rapid growth in battery demand.
This market is projected to grow from approximately $60.3 billion in 2024 to
$182.5 billion by 2030, with a compound annual growth rate (CAGR) of 20.3%.
Conclusion
The consumption of lithium-ion batteries is expected to rise continuously through 2030. In this scenario, the importance of resource conservation and environmental protection becomes even more significant. Recycling end-of-life lithium-ion batteries is essential for efficiently utilizing valuable resources, reducing environmental pollution, and creating economic value.
By carefully analyzing and evaluating the financial information and current value of companies, investors can make informed decisions that could prove wise in the long term.
Thank you for reading to the end.
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