Li-Cycle shares plummeted more than 45% on Monday after it announced it is pausing construction on its Rochester Hub project in New York state, the company’s promised first-of-its-kind North American commercial hydrometallurgical battery resource recovery facility.
The company said that it has recently experienced escalating construction costs and, as such, the aggregate cost of the project is expected to exceed its previously disclosed guidance.
In response, the Board of Directors chose to pause construction pending a review of the project, including an evaluation of the go-forward phasing of its scope and budget.
The company noted that it continues to work closely with the U.S. Department of Energy regarding its $375 million loan commitment through the Advanced Technology Vehicles Manufacturing program for the project in tandem with the project review.
Shares of Li-Cycle closed down 45.8% at US$1.23.
- Updated with closing share price -
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