Li-Cycle CEO speaks about reason for pause on construction during conference call
ROCHESTER, N.Y. — The CEO of Li-Cycle spoke about the future of the $700 million battery recycling facility planned for Eastman Business Park during a conference call on Monday afternoon.
Li-Cycle paused construction on its North American battery recycling hub last month. Since then, its stock has plummeted and a class action lawsuit has been filed against the company on behalf of its investors.
During the third quarter earnings call, open to the media and to investors, the CEO said the decision to pause construction came down to two factors, higher construction costs and trouble getting money.
“In summary, the escalating construction costs combined with continued delays in closing complicated financings were leading to lower current and projected cash balances,” said Li-Cycle founder and CEO Ajay Kocchar.
News10NBC is working to find out what all this means for the future of the facility. For now, Li-Cycle officials say they’re pausing work in Rochester until they finish a comprehensive review of the project.
Li-Cycle promised a 65-acre site at the Eastman Business Park would become its North American hub. While several local tax incentives offered to Li-Cycle, none of them actually kick in until the project is complete and 100 people have been hired.
The federal government offered Li-Cycle a $350 million loan but that money hasn’t been processed yet either.