Li-Cycle Holdings Corp. experienced a significant drop in its stock value today, plummeting 14% to $1.96. This sharp decline follows the company's decision to suspend construction of the Rochester Hub due to escalating costs that have exceeded initial forecasts.
The suspension comes on the heels of a difficult year for the company, which saw its stock value plunge 52% over the course of the year, closing at $2.27 last Friday. In response to these challenges, Li-Cycle's board has initiated a comprehensive review.
Prior to the suspension, the Rochester Hub project was primarily focused on onsite construction activities, having largely completed the engineering and procurement stages. The facility represents a significant stride in lithium-ion battery resource recovery as North America's first commercial hydrometallurgical battery resource recovery facility. It is also a pioneer in the production of recycled battery-grade lithium carbonate.
Originally, the Rochester Hub was scheduled for commissioning by late 2023, marking a major milestone in the lithium-ion battery resource recovery industry. However, with the recent halt in construction due to financial concerns, it is unclear when this landmark development will be realized.
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