Lithium battery recycler Li-Cycle Holdings (LICY) seems well within its ability to scale its business to at least 100,000 tonnes per year of Spoke processing capacity and 220,000-240,000 tonnes per year of Hub processing capacity by 2025. But can the company generate sustainable profits in the near term? Read on. Let’s find out.Lithium-ion battery recycling company Li-Cycle Holdings Corp. (LICY), which is headquartered in Mississauga, Canada, completed its stock listing in August 2021, merging with special purpose acquisition company (SPAC) Peridot Acquisition Corp, and generating $527 million in net proceeds. It also recently announced that Koch Strategic Platforms would make a $100 million investment to support LICY’s rapidly expanding growth opportunities in North America, Europe, and Asia.
The stock has gained 15.5% in price over the past month and 52.1% over the past three months to close yesterday’s trading session at $12.95.
However, LICY’s losses widened in its fiscal third quarter. In addition, its shares are currently trading 16.1% below their all-time high of $15.74, which they hit on February 16, 2021. Ongoing labor shortages and supply chain disruptions make the company’s near-term prospects bleak.