Li-Cycle (LICY) 27 Jan 222021 Q4 Earnings call transcript

Good day. My name is Britney and I’ll be your conference operator today. At this time, I would like to welcome everyone to the Fourth Quarter and Full Year 2021 Li-Cycle Holdings Earnings Call and Webcast. [Operator Instructions]

Thank you. to Investor call Relations. like Azmy, to now of Head would turn over the Nahla I Please ahead. go

Thank you our Britney. XX. for full joining Good XXXX morning and today year Li-Cycle’s thank for review ended of results fourth and us quarter October you everyone

we joining also Ajay Ahead a Li-Cycle press presentation video. Kochhar, is February Financial and Macinnis will our today the co-founder, Then Tim follows. investors.li-cycle.com. Johnston, Officer. with remarks Chief our with President releases, formal on from start for a website XX session that found CFO of us Debbie co-founder, of Q&A and will we relations First, be this issued brief follow section which Executive at investor call effective Simpson can video Chairman, Bruce

be U.S. Commission, Ontario Commission this be any materially during reflect call, conference forward are and to new statements subject are discussed Canada. written press oral except and with whether results Securities any or factors not can Securities our forward-looking this and as significant or website@investors.lifecycle.com leads management releases or time otherwise, found this These duty the documents On in past current we in information, and required. our to to today’s of update filing in on from do the estimates any reports expectations, Exchange assumptions could based future will our Actual undertake our events looking time statements, making of uncertainties. which including call call because plans, If during differ risks and to statements. and from incorrect on assumptions

call to I'm that turn pleased With Tim. to the

Presentation] [Video

away prospects. video sense We enjoyed the with growth how are future and about good hope mobilized and and morning. Nahla we excited the Thanks Li-Cycle’s of you came

roles, in see, growth materials. recycler secondary we and As two and be critical Through we source of battery leading, markets. lithium-ion expanding company to of with battery the closing the key key are loop environmental supply the these can the positioning chain are batteries effectively you innovative a materials

Li-Cycle. XXXX customer Hub in domestically. Network landmark ramped successfully to the up and market secure that vehicle particularly was and North a supply It the America, growing Spoke need of implementation addressing and Strategy, significantly

I of would to X. the is welcome the highlights review February Before to on taking the take I Simpson, as like year, Debbie CFO opportunity over who

contribution public his taking we Bruce in to plans ago to retire time want Some We wish Macinnis his in retirement. announced and and in well role Li-Cycle that thank him him January. we key for

review key Beginning our slide three in a of areas. progress for on

off two in with on global sheet, we First, partnership strategy. Starting made a leading arrangement strategic term with business Li-Cycle model. strides validating strong participants balance long significant

coke note. strategic purchase platforms, The first and is which a $XXX through million with of convertible the invested

the in investments rapidly within specifically been KSP to growing ecosystem. has energy related electrification transformation,

In the a the opportunity KSP engineering and investment strategic hub deployment addition fabrication, spoke to capital to readiness. Li-Cycle by operational this spoke prowess, partnership Koch’s provided in deploy

hub. agreements By or nickel a million off-take completion from and battery Chem invest battery The LGC leading to $XX in China. spokes, electric [Ph] materials manufacturer chemical lithium-ion for expertise battery manufacturing. LG of add global Li-Cycle. with Solutions. meaningful the of with have active a to is is is global company LG both in total outside line of second largest LGES mid-March, Upon supplier the commercial and sulphate vehicles plans our Energy for a

effectively company's structure the been made of key the the development stakeholder team. a plans. addition to support business internal global to and and realign acceleration finance we recent We've In leadership relationships, aligning external the and building key to leadership these regional of more have growth hires

Africa, in regional structure, and the Quality. Asia and activities, Quarter activities commercial Pacific. and oversee Safety, is Environment East development business and Health, operation, new recycling operations Li-Cycle’s Middle presidents will the Americas, Under Europe,

setting early culture as we levels the promote all at grow organization foundation rapidly. of We HSEQ the driven an to are

communications On an Health enables and incident providing which improvement. continuous Safety, we implemented an framework incident management institutionalized wide an organizational system,

and pertaining XXXX to XXXXX Recycling. For obtained systems quality, XXXXX and Quality to registrations key pertaining for Systems to to we effective pertaining pertaining environments RX ISO Safety, and environmental Management management and Health Responsible

registration operational per Arizona ISO the For permitting Kingston we maintained non-conformities. for our Spoke have schedule, for on the been environmental Alabama keeping and We for completed and operation the Rochester permits start-up. RX and Also with required all facility advancing the Spoke. zero track

the our Spokes original production during fourth operational ramp fiscal their target quarter, continued Rochester full successful the Regarding black their year for Kingston bringing up year mass performance, and of ahead XXXX.

a projects of on video, from Spokes up the as both in remain construction, terms Arizona and and to glimpsed track XXXX. we start Alabama In

ground Rochester we Importantly, the also broke on hub.

both Finally on commercial end-product have meaningful and we supply battery the made progress front, in off-take.

of On Energy a manufacturer. the LG battery a generated General venture the Ohio supply Motors the planned agreement scrap to recycle we side, and cell entered Cells, by with Solution material joint multiyear Ultium into

American agreement As fifth with site. part our co-locate Spoke to through we North plans of We partnership entered Solutions, a Univar this management. this in at a have waste leader our collaboration, major supply

and as North in We solution such provider Vehicle waste are battery American lithium-ion Benz. leveraging managing Mercedes from waste Electric we producers coming sorting of will Univar’s be expertise multiple and for slots, collecting, OEM the

long we mid-March, agreements to LGC LGES. and have finalized expect term By with

battery materials. bearing loop our nickel facility, from We will the hub take their closing with battery sulphate materials their Rochester nickel supply on and them lithium-ion

Turning a to slide few commercial comments. additional for four

year. approximately On the increased the this supply diversified side, number to supply we and of battery customers XX

is our One of battery advantages lithium-ion IP-protected recycling is agnostic sources. Li-Cycle which processing technology, competitive

has including Spoke manufacturing fiscal year batteries, facilities year electronics life to intake fiscal OEM transportation example, battery derived For predominately in XXXX at and of shifted EV from in our end XXXX. recalls recycling scrap battery consumer customers,

to We are our in be of continue materials pre-processing through Spokes. our flexible recycled equipped to

scrap. As intake will mix from we approached mid-decade, we heavily battery more anticipated tilt manufacturing

black sold agreement off-take required an until will production mass black all side, Off-take was mass capacity XXXX, in capacity there's Hub. overall sold. for under be Beginning the production the On

Turning highlights. for to slide five operational

production on acceleration Kingston an in depicted and Rochester the black for we to and the Spokes. the year, saw fourth ramp fiscal mass year-on-year of As the left due up side quarter full

right an provided we to processed in much an amount have material be example the to order how of of generate side, equivalent battery needs On mass. black

have produced We battery that using of show chemical be critical extended black this conversion the high amount can mass value to end rates. products from

formal my concludes remarks. That

to turn review. his me Let for Bruce financial

Tim. Thanks,

XX, review fourth results Turning to periods year. note slide full our October I'll that reflect the quarter and ending Please for fiscal XXXX. year both six,

as batteries ramps result prior $X.X on-boarding up. battery million a in quantities This revenues as continued increasing supply customers of well driven as of The and $X quarter product over Rochester the of million million Spoke by respectively. of million services. battery primarily $X.X at to year, increased For the new versus processed as increase was recycling in scrap and an $X periods it sales, higher and

of as growth EBITDA This and personnel largely a supplies was professional costs associated million increased the business. the $XX related Adjusted was million development materials running driven raw network and with respectively. period and by and costs loss $X nearly of public prior continued hire million the $XX versus $X and expansion such company loss million costs, to fees,

it nearly equivalents me million and over cash at Ajay. of with With that, end the $XXX to period. of cash ended we turn Finally, let

developments our market some Bruce. in more Thanks, cover recent and trends also outlook. network detail strategic will and discuss business I

Turning slide really strategy. to key that I our to seven here like are There takeaways two on highlight.

needs. First, with Europe and we're the market and term network aligning in growth customer our investments focusing near-to-medium North America

opportunist exploring be also will We in Pacific. Asia

operations. End-of-life Second, manufacturing their reached scrap rise load to continues and steadily volumes future battery generation continue to a with acceleration, strong early anticipated electric base vehicles use-for-life. provide for as end of Spoke the existing

for XXXX and integrated our targets. stated Turning of to a Spoke Hub slide reminder network eight

reiterating annual After equivalent Spokes at battery Hub, are capacity is network approximately tonnes least that annual on XX materials. battery annual of with centralized targeting input, equivalent gigawatt are XXX,XXX lithium-ion which We approximately hours reiterating equivalent processing materials. to we battery at input XX gigawatt of Li-Cycle tonnes hours equates battery at to XXX,XXX the of that planning least a of of our lithium-ion

I'll chain mega and in slides Europe Next, pace. some North and accelerating America the on of growth nine depicted supply both Significant and battery we discuss in are continued as seeing investments has factory trends XX.

interesting, sales. and Asia Li-Cycle As EV global share automotive of it’s is expeditiously are the consumer an Pacific. OEMs customer approach EVs is America Spoke in on expanding opportunistic of strategically network positioning ensure in market focusing adoption and Europe, alongside North Hub to manufacturing equipment and needs

capital close load commercial key are partnerships to on securing also that underpin returns our is base investment. facilities locating centers while clustered, demand will We customer our where

volumes manufacturing Approximately recycling. driving X% Deceleration lithium-ion needs least of battery and of manufacturing scrapped. typically scrap cell, is to increasing module and at lost and XX% pack for are

expected the addressable manufacturing of manufacturing America, slide for suggests now as on seen to XXX,XXX capacity of scrap XXX,XXX hours North to gigawatt surpass nine, In tonnes are XXXX. to That by by XXX expected tonnes XXXX. investments be is between scrap market

relative In this in market America. of along is terms ED slide Europe further battery North and as on to shown XX, penetration manufacturing

As be North American times will expected market. size two by XXXX, Europe the the of

demand are centers we close commercial sites our securing contracts. North to in with strategy while developing strategically also As America key

to slide our pipeline. Spoke XX, Moving discuss to expansion

protected as footprint capital environmental IP light Spoke in size. Our a low technology is

pace built a replicate saw efficiently cost and able video, Lego as growing. battery to chain you in with largely the fashion, scaling supply As in we is both thereby are each rapidly up Spoke the modular

Ohio accommodate [Indiscernible] Further, chemistries, and battery XX,XXX changing will approximately underpinned commercial in able we lithium-ion strong, year in partnerships. of we by Spokes have capacity are battery tonnes processing to per Norway,

advanced strategy, additional Germany. second updating in a are our Consistent stages in we progress. specifically this Further, anticipate upon on site with Europe, planning for in we Spoke

newly a in announced cells, co-located will as Ohio. of Spoke for XX construction site under factory, on This review slide currently site battery the to be same cell Spoke manufacturing our mega Ultium site. Turning Warren, Ohio

with Ultium plant On XXXX, million gigawatt in the feet hours. annual of X capacity will the operational fully span background square $X.X XX billion cells approximately when

company's given approximately location cells co-location expected operational building tonnes Ultium will relative associated in cells to The new install [Ph] will and capacity recycling facility. a an operate the and annual will processor have this processing Ultium at logistics costs new and Spoke facility the proprietary the early be technology inbound new of facilities our Li-Cycle construct will The for XXXX. XX,XXX Spoke with mega-factory. reduce is substantially to

EV STOR for batteries Spoke systems. Norway, state-of-the is located second-life Turning a the Morrow lithium-ion building XX penetration due through EV reach as [Ph] XX, in ECO STOR batteries nearly into first sales spring with focused floated annual Spoke plant We art will projected repurposing hours. in early penetration to in strategically as Batteries. storage manufacturing of cell will energy highest XX% world. on rate energy ECO battery is launch stationary and of our this Norway rate, leading which an joint-venture Norway recently EV its business gigawatt This discussion of that into Europe. year. capacity slide Morrow a be the storage the is over is It to in XXX% announced

being joint-venture Morrow will owner We ECO the minority majority of and owners. with be STOR the

responsible We batteries. online to for facility will XX,XXX which capacity expected processing early year with of is and be by operation lithium-ion the tonnes come per XXXX construction of of

will Koch capability full ECO and batteries to have manufacturing will to Engineered facility with engaged the relationship storage scrap. scrap, energy with the Morrow of ship Koch’s extension also lithium-ion provide an STOR Spoke a We've which manufacturing end-of-life packs modular battery Li-Cycle and battery joint-venture test, systems. facility construct, The and strategic process provide is EV Solutions will

include Li-Cycles lower in are key to a employee and hydrometallurgical a number recovery, project leveraging of Hub footprint, competitive centralized safety. resource historic Briefly our and Utilizing to capital slide IP-protected higher on we location XX. able intensity, environmental These lower achieve recap infrastructure, advantages. Rochester technology greater

product is it in not based the first designed While processing kind uniquely does the require department. technology, on

have breaking engineering ground to our consequently we orders process addition project, and all design, In pulled frozen lead on forward equipment. for long the

general to and next construction are in equipment We Hatch weeks. contractor as contractor the finalizing are materials securing EPCM our schedule and contracted maintain few selection and the costs. We

we XXXX, our of to intend operational Koch approach as we part continue engage seeking mechanical opportunities strategy. Engineering Solutions completion to and in As readiness commissioning with

Over the provide will of course the and development updates on of XXXX the Hub. we XXXX, Rochester

address key on shareholders our business to Turning XXXX. for leadership these with XX, to team is aligned and outlook objectives The directly objectives. based key slide

will support profitability. to in expect build to base our operating of us expenses continue strong our we towards It to First, build we growth, provide a optionality. business sheet our to with balance manage on a and also path as

disciplines. Li-Cycle’s and Second, operating remarks, are as Health, Environmental values, mentioned in Safety, Quality core Tim's to culture,

locations our new for we implement are at all foundation from that development are operation. refine a establishing early through We and of can strong continue to sites

target to XXXX. we had Hub continue expect start metric. on once in Third, on execute year on fiscal of been in this production note to on our budget X,XXX Rochester the up support deliver time tonnes and X,XXX to XXXX black range we to will Fourth, mass tonnes he on

this would year, to anticipate Rochester XXXX to include Kingston continued the the we've in Alabama the up more past of wrapping XXXX. That early second half an and into with Spokes, fiscal of So ramp facilities. production acceleration Arizona and and optimization

We will Germany. Ohio, on progress to in continue make and of Spokes development Norway,

Q&A, some XX. points key Before like slide I on on would conclude to

experiencing are for the battery materials a growth chain. We inflection point supply

executed have of a Spoke of we the sheet Hub with strategically and thankful are our network, and moving and and achievements, and America Jim significantly team's Europe. the a on and North balance projects. We execution. I customers expeditiously are and on and partners our in of commercial demand, number advanced We market partnerships leading growth particularly our have support strong continued focus proud pipeline to extremely with and

formal concludes and This our we to your looking questions. forward are remarks

And Capital Chardan with Markets. Instructions] from we Brian will our [Operator first Dobson take question

is now line Your open.

as it that Hi, you’ve sector see Would minute. XX,XXX like evolving see the can and per up feet how the we positioned few you landscape? mind next what that on the Maybe good years from morning. shaping elaborating benefit over key take to megatrends to you

Yes, Ajay I'll add needed. then start here on can if Tim hi, Brian. and It's and and

Tuesday, than shifts have extremely, and we of an deployment you today they but and likely customers. EV market. acceleration seeing going will customer example. Starting at which factory up to announced meet -- extremely facilities bigger mega in Ohio. So Michigan, capital of Ultium. demand, week give and acceleration electrification it from look, the We're pace On customers, the look to be announced our time an targets, unprecedented be folks colocation in grow. the one in picked a is it's to beyond of third our our To folks This would Ohio, continues exciting course trying the with which

And continue prudent baseload and thing our really ultimately, that. the we contracted trend for and about financial being those to it with mega that up so us, how with tier for exciting the But we're returns. network match us is one thoughtful partners, along drive provides to

our is large, one perspective. I that's would trend, So mega say dominating from

And it's is, is second critical The of on the course, flip side. related materials.

tightness sitting the of lithium to the lithium-ion bodes batteries. into go in cobalt, of supply materials we've that continued products back that and our meet megatrends, and So seen at of critical demand. course That well are nickel Li-Cycle those for ultimately, intersection

that also So us. for well very bodes

the on equation. seeing the market macro, the and the we're benefits of So sides from demand both

last of I that of in just couple Europe focus in the sorts geopolitical instability then we're add and the of increased that, lithium all And the are America. other and over in think is to thing seeing I and on on the how particular, South produced. we've materials supply seen mean, weeks,

to have as And don't look of in when facilities, work we're any position we forward because air liquid a discharge, again, we meaningful our wastewater, we zero we our processes. closely with facilities, we our with generate continue technology. And no don't a generate partners, emissions, thermal our at so move benefited once to hub Spoke

world. our only customers want with but is around not so communities what aligned And this see, and governments closely the to

confident from So trend. that continue we're to highly to benefit able general this we'll be

factors need just and here about government critical customer consciousness. the groups course, able to about At on the the supply. in domestically, But growing at be levels, batteries, Europe, now. make North add America, we they're we in talked domestic is The materials supply. that to actually the that South level, for the other two is America materials, And terms domestic would talked need need the the and highly of of produce of aware

particularly move need in And seeing is towards then a the for in recycled one thing the thing that really we're material. Europe, is final

these in then that vehicles amount to minimum the overlap And recycle directive go that, of product all batteries include you a the back and on you things. produced, a end and other push are have battery into material, users. So with top

a industry. see our as for highly build are whole beneficial we to we And So that leverage we'll items that out range network. continue of

up. That's a And very follow thank Great, you. helpful. brief as just

new that facilities strategy one you'll So hours, should your other? other you What do the two Spoke announced think past the in XX versus out standalone, continue one the as locations, co-located, you is expect? roll we favor new to

Thanks, should Brian, add on. and I'll start then Tim

and articulated co-located a as So mix have And both. we it's I the merchants. think presentation in of

always change that a To load our doesn't all to feed drive the one to coming that thing course, production. However, we're mass base amongst the [Indiscernible]. to for contracted black facility is that looking of ultimate

thus it's, So example, recalling numerous change factories, co-located “Merchant”, load. different located with first or a from suppliers, approximately taking contracted doesn't captain whether supply for that as base co-located associated principle with mega source,

I’d add of customers doing. And them facilities having an they're can facility, network what that to we show where actually to existing bring just to our

confidence say We to demonstrate and with we actually we we what we through whereby with do able that and that are we effectively LG, went this -- had what give do we something operation an existing the do. process onto that where, is we Ultium confidence say that bringing of And of new critical course site an a business existing seriously. one extremely any they take we aspects onto that additional is to with

to Or facility we way. do, in a that a flexibility efficient is impact, range and of site can example, benefit a able Ajay standalone be it Rochester. be be for service a in minimal do as Kingston, and onto we able safe customers go as and directly to be And said, have mix. the so to the with to continue And technology be we will it that of

very Great, thank you. Thank you much.

We PJ next take question will Juvekar our with Citi. from

line Your is open. now

Good morning, guys.

couple a Just questions. of

all And tonnes about, of Rochester the it. that you're the real in in about being Fed inflation, material about we're Is seeing on talk upsize any of mass. construction XX,XXX raw talking the you to Can just is talked out you there? within Hub, you you there labor seeing budget you're we're black issue? the First, Are But, shortages, capital. what of sort seeing that conditions seeing that an doing? for labor

no that. PJ answer problems Yes, to happy

parts, I in it the a in equipment. process. so step two really this that was think And let And very and materials critical address me relation to We the early in organization. identified for

what brought actually time was so activities And procurement supply. in into we pricing materials the we did the be The these front to this end our building a of in project, guarantee a and traditional way of forth of wouldn't like just and project equipment. order lot of delivery

PJ strategy. For example, that. address And that we against went secured are procurement to through a we warehouse, that for our able we

studies. in and which Labor said finalize the as labor And very we're also going contractor. selecting call quite in work another important reassurance expect what through as general to self-perform certain of been we that detailed But is relation actually impart the ability to the in level done weeks, one looking that of that process process provides next supply. has our labor to earlier we've a his we've remarks gone a the to work we few through process with contractor the Ajay

to labor surrounding to pull basin fortunate is Buffalo in the approximate in have the Rochester, from cities ability to Syracuse area for Rochester. and, or and Rochester are northeast, the We the we other be

we've expected are, this the project. the at gone labor done that understand With the the in PJ issue. all what understand don't of costs cost, budgeted an to the in through inflation And that increase are our we likely be plan. we have what time, work, through, we in is So see point we

you contract cells. different and Spokes. And then of co-located. partners Ultium Thanks, go look is than plant would then Tim. into the other is pay Great. sort under Is And Is long you strategy Ohio Europe, your expand in that as a co-located Thank you. for did that similar take Norway? it Germany, with or into as you term because

take one. that Ajay. I'll Thanks, It's PJ.

fee. an last in as want existing this just of articulated do with of is our when contracted So we that announced we augmentation was co-location this, bit, base little basically Ultium. course, And a load year, to contract elucidate I

And, So to the kicked and that's overall a of our we equation. want part rejects yield manufacturer and critical access the that's loss being off.

we In that extremely forthcoming LG of is the course, announced the transformative with December, business. for transaction

it So level, be around these that a the partners are North and anchor the we're from speaking with, world. whether growing broadly Europe America, high

it's recycler. not exciting different that say I augmentation just So a of and regard. very the co-located an a in augmentation quite co-location us Ultium being is captive would

of largest I example, perspective, sources. in from said, the EV Europe, constriction scrap. general, have a manufacturing different market mix strategy same as for In and For we a in again, supply the end-of-life, world Norway, that's

a site are So change, perspective, whenever these on doesn't who there make we to anchor it's our or standalone those go partners that we'll always and that be rather decisions the co-located looking merchant, if they basis. reason or to -- from

Great, you. thank

And will question BMO our Fiedler from Robin take Markets. Capital with next we

is line Your open. now

Good morning, question first plans. to America shift Hey there's geographic expansion Clearly a North and Ajay. Europe. My everyone.

fair with targets majority North can American all to can the capacity assume XXXX that be Now, secure the it vast of met Europe? or if the be even that feedstock is

I and I'll a the Yes, is And folks past shifting, we've And as shifting. think reiterate both of they're today, shifting, in has XXXX with nimble. folks has have Europe, is would very accelerated do very to think demand that seen. start we our have to on. pronounced and North to the is are lot start and growth America so been clearly everybody quarters or months, customers market can in been being our perhaps on that saying, up conscious were One as and attuned I picked thing -- targets.

agnostic to returning materials we it's ultimately and products battery return. doing, location. of drive bit battery for a a the economy, are change, supply what generate chain, and we're But little ultimate processing So us, to to the financial

to downward the North term again, near was you in and And on prioritized so this following approach. but just obviously, same our very investments at the need focused today American again, being not [Indiscernible] intentional, customers. articulation focus Europe, time our

cannot what's in the are Asia that world happening the of battery Pacific, world, customers Asia right You in ignore driving that lot Pacific. a important in and are also those epicentres are the are of

a is approach. a ground, there in customers. But put on North more see pronounced there's our shift do balanced we per focus assets where So and steel following America the we with And Europe. a se, in

And and maybe just mass great. of sales help a will expect expected Hub production how incremental be you than with mind, the be commissioning in how want I all much will to follow be that inventory just then And near build better of you with the the actually year-over-year That’s do XXXX year. as XXXX much ahead some EBITDA to to next to black earnings. tribute worse or XXXX? to term respect of construction, costs ask address in a on speak Maybe bit and now development also can

and so Yes, on. Tim Debbie the start add first. can with I'll as then And needed

So start let mass question. me with the black

parties fiscal hub, when to high to versus it's third help this from in feeder that we And capture who selling diversion that articulated will when defeating for diverted just value. webcast, as So switch right XXXX. the mass actually folks in we being sell it a black and black to mass think continue we level, is this from do a

the assess the the we’ll they sell. and continue the Hub. to course, of that, will So to XXXX to fee approach diversion that not continue value see But we associated XXXX, in capture fiscal Hub do vis-à-vis doing as we

year can spend onto capital Hub, that. of terms for can In high level perhaps commentary add the on and I and Tim the start

acceleration script of the like we the or XXXX. commented So will that in we XXXX, much we webcast what half saw qualitatively see the back an on

spending, other goes of for mass into early acceleration loading peanut that capital butter and black Spokes with Hub for is producing So that spread back-half for further a some goes a it XXXX. course for

accelerating it high back So of year. half of spend from a in the again, of the the profile is about half and her overdoing you loaded think the latter the if profile level,

And, Robin maybe add to that. to just on

to a there's layer in. things think I couple of

key In well terms is we're cash we year financed in for spend outlaid We're that coming conscious that are will our cash the but support that add terms operations it things for the people key capital of in the continue And of over spend capital $XXX needed terms organization million spend and one with we of in the we've to is we the year on strategy, effectively that. XXXX, in that's build very Hub ended the order half. and of thing the fiscal to backside another fiscal is two that the of capital XXXX, around early projects growth procurement On hand. online almost a in within yet, years. of be accelerated particularly equivalents the

the So about today, we organization. within people XXX stand at XXX people, just over

the of operations. we grow We scale to XXX year, as by prepare approximately continue end to expect to the that the to

spend back lot Robin be on provided that building a to I production, CapEx. including is question the dollar Yes, key of Get blocks. together, disarticulated Look, going including on heavily there, is to just your we've EBITDA. putting to think our

key the year, other get something And attention this the OpEx to as that about just Tim one pieces, to then perspective the think color. building articulated to well. as the of our drivers to. So blocks pay We of from provided

And question with next from Wedbush. David Ives we will our [Ph] take

now is open. Your line

Thanks.

So.

whether hit just you a from to interest is think year you when can having conversations ago, just with about U.S. even EV it comparing maybe think you're of what the today I on the we in we're, OEMs watching seeing can specifically the So some perspective?

of care further the has and the actually here, Thanks, for shifted pulling further to proactive Dan. the about think for investments in And we activity and spoke the I about of beginning further things the the call or appreciate all Yes, tone question. rather. recycling, further Q&A because

years shift. I recycling last ago, two was important. even a big year And mean, so it's we say

and I think, generating through part and and some scrap making thinking in ways of until But as our strategy, electrification always start they were it customers referred, making was you batteries recycling but the battery recycling. you some thinking. as saying need that of actually for you're in make fact getting getting that the a not recycling business, terms the scrapping into themselves, they realize of the result

ground, actually an been do is that say the then the it So you who's recycler, right, the The that you commercial practical batteries. say, you to market, can think realized? a what necessarily this? parties Right, is, been for well, has scan fulfill will There's the technology you're actually this very doing in tone, the validated I broad front. that. acceleration very not strong to physically market that take all just partnerships to combined be And who happens desire going need and from -- with on can't that and and time, actually get then adapted

continue we strong see benefits. So to

the change. We right the in that's and taken the have to last benefit there time right are place, from partnerships evolved get that that to year And mind-set technology tone plus. commercial in the right that change

life And so XXXX. obviously Rochester how a or for is out you competitive going Tim competitive could you just process. the that? after name of target it, when big Like, build important there's the Spoke example like can and When like and competitors so just how give some on or process, us is like other Maybe some used the seems real in know customer many you same of Hub even opportunities?

for a to has us coming that one is to on But chains announce that filling the what about No our and mean moment and they in Because construction, materials. of seeing we what think before, they more plants in driving. new that in to problem, factor and their these capacity. we and talked the forward negotiate at so I have. want that facility, our Hub we're fact of see key bring there in are is the holes a LG. I us we're examples see way great Rochester, that a cell contracts. announced to Dan. of now forward plod in security become with tailwinds continue with as supply I manufacturing they be our I we're moving And gap the lot ability as that able raw mean, And, the it’s

that us I Daniel funnel Hub? really ask need important the often what's you on materials. in terms and materials mean, you be People end. receive to is that critical. the hard. impart enabler is process It's But it's Spoke those the more that say they're would Hub of a I able able need meet battery or to the So the critical front ensures gap the to

Great, thanks.

And next take our Kallo will we from question with Baird. Ben

line Your open. is

you much know, that customers question a Because change my signed volumes not about Or Hey can have taking is question. ones, there you that question, Dan's it my it That's talk If on or over the for how want on But name different evolved? terms about guys, is time? the how's with same? several very morning. good just maybe the but at evolved? and you Thanks. pricing, I thank names. and to following discussions like, just fixed to and first

Thanks, subject. and happy to that address

technology as taken be now we've position, volume. said, to that I just in on and take prepared commercially Tim being better the find steps to we say vis-à-vis would the continue to So just operational, ourselves better

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supply materials, it typically. we're materials, making go chain. specialty content scrap, example, when ultimately, priced getting, sometimes at material based price then we're of form, at the fixed those both, the integral back And to on for On then is a manufacturing on to the typically the and materials reproducing, those discount, depending

to as have a though trouble is prices a cost be in different going place. high we if to So fixed base it's that go big

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increase that our seeing towards to a Yes. add we're customer sophistication that, from the favorable Ben, this seeing of an and is model, to side, on move And just terms in trend much in on the which definitely more we're perspective.

to natural that hedge. Ajay As that natural, provide said

on that And changed? just people willing contract front, what lengths are type of to and that sign has

getting with a process XX-year better as posted it of Yes, multi-year, it's contract. finalizing a in we're And keeps LG. December. seen even actually That's in

speaking, to... have security they security trying that at, same also lengths which get of dealt to the a supply with and continue stay to actually, either what is go I to And or grow. material think for back to the speaks home be you as to the continue So broadly of they're

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great a that's Alright, question.

going to this Just Hub volume our will manganese so track cobalt, of graphite. lithium, to the Rochester nickel, from XXX% for clarify, and be

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allocate However, the the to to workflows we ability with product those. and have access

of little the So that's bit flow. just a

said, of is is since nickel, high not broadly that preclude other why there nickel production in speaking terms from their opportunities LG? focus a And In A nickel. on exploring on base materials. for it their of us other lot chemistry does

[Indiscernible] materials.

about other about that the lithium all producing amounts special will there's be like. Sorry sense nothing producing from cobalt material that the and of the those we us precludes and the respective material LG

the ship that on Spokes current Spoke, is so of procurement out them Or in of helping location. facility my you quo maybe follow I status for the does impact because be a And and the the had should have going on that Is for before. called And build engineering on was operations, Koch Europe. that Great. your the forward? release think with just that a going be kind to of any

No, it's an add on basically, Ben.

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build We plans have bandwidth and highly that to capacity, of And, to having a which being years is come. valuable. lot the build additional on in the

Great. Thank you guys.

question And with we Company. from our take will Cowen Jeff next Osborne &

Your is now line open.

Hey, good morning, guys.

of the call give in quick had third that is or XXX us couple content on any was on thirds lot CapEx ones, I to a facility. LG end, call, a contract of of a Just of the here. two maybe total with you CapEx think a for commentary, XXXX, XXXX, the Can the my and back on the mentioned type scope? in the Hub Circling prior you sense

and Yes, on. so add can Jeff maybe start Tim I'll

is in of half So XXXX. latter [ph]. a sure I'd say for dolger Probably speaking big the this back loaded half

in targeted of to be that XXXX. said, course have facilities or We the commissioned, commissioning

is comment the general too data. So this much That's that the is unchanged. filter,

Yes.

reasonable So of XXXX. and will assume it's be the the materials will to I that equipment majority bought be in that think FY

the FY couple future One I look will things say will be the people we updates of have in detailed general and of to be providing is will as we're is the But, at terms breakdown, on we course, more loaded of in materials would of how progressing on XXXX. that in and the the contractor spend months here focus completion. equipment in be XXXX, next front definitely underway well that the

that helpful. for any Got month, you the the Have American government last about submitted or And funding, it. with you facility? think I applications That’s government same discussion had had referenced any funding pursuing call

can Debbie But here. wants bit That opportunities. something But would she fit specific some could a out catch [Indiscernible] won't on we so the little up, for maybe if can't I potentially programs, here any comment specific on to getting balancing and add stand comment that. But broader I to like me well strategy. broader

a take to at. is intention the look Jeff, Hey

us is to So next funding we're for prioritize on non-dilutive will what options. to working multiple options our and for important be

future a do need build growth. So to in the we sheet end, flexible really here funds us balance that the for is what

for So we we all that now, we funds about. the sheet balance Germany plans, all that and right talked the us a just have CapEx that including just

earlier, build to. flexible do With current was beyond to balance what already this that really for we Ajay but committed we've a need Tim based we sheet, of it's on to what that's and ahead how said what opportunities, a it structure do great

SPAC. versus sense. of pace construction, the The around operational time aware just the other conditions or any there we under the to of I just are Spoke XXXX, relative one the of? be and production there that and Is last Got the solely makes commentary what's is aspects that had it, perfect the delta should

year, that XX. in down -- everything fiscal Yes do done October with fall I we we've like that all number the

So But folks time and think, calendar or of that I'm see I on can different yes, was go there focused forward. a basis what's I originally. saying back course, moving believe

Thank it. Got you.

And [Indiscernible] final our Evan will Stanley. Morgan take from we question with

Your line open. is now

about like Spoke helpful? when of couple million million to ago, I Hub? guys. months Adam of a announcement you. talked you're he Evan the newly with seeing incremental the that kind are cost Jonas. upsized total, X Good costs inflation If any believe, on Thank think you would be like Spoke was announced about type commentary When the of morning, think and of behalf seeing we back Rochester the there XX Spokes, of same

and Tim add. start I'll can

but course, the turnkey, short lumpsum style. not can there's, in And And think plants short. I very answer pronounced. of Lego add there no as is Tim build here, different no,

that per call example. is than bring a be intensity And with year single forward would moving down tonnes a I direct aspect the capital was give as the advancements battery we we're you being XXXX on capital that improvements made is line the that been a intensity. single we the before. single to really traditionally line tonne say to to able year that will able helped other materials that I'll plant facility. focus technical would have per facility make more where We've what even down XX,XXX we processing has of and and it a now to bring

expect be further able continue to be we So to to improvements. make able -- to

you. Thank

queue. concludes earnings time, day. in call XXXX your have questions further Please Li-Cycle at and and quarter no This a and disconnect wonderful webcast. this today's are there year And line Holdings fourth full