Li-Cycle Holdings Corp. and VinES Energy Solutions have signed a definitive agreement for a long-term recycling relationship. According to the agreement, Li-Cycle will become VinES' strategic and preferred recycling partner for VinES' Vietnamese-sourced battery materials.
The agreement further contemplates the possible construction of a recycling facility located close to VinES' manufacturing site. The potential facility has the opportunity to benefit from the growing local demand for lithium-ion battery recycling solutions, driven by strong economic growth and an increasing manufacturing presence in Vietnam. An investment decision regarding the dedicated facility is expected to be made in 2025. In the meantime, Li-Cycle will facilitate the processing of VinES' material utilizing Li-Cycle's North American facilities.
"By recycling battery production scrap and used batteries into the global mobility and energy storage industries, we can achieve a sustainable supply chain while reducing environmental impacts. We believe the strategic collaboration will strongly accelerate both companies' missions of creating a sustainable future for all," says Ms. Pham Thuy Linh, CEO of VinES.
"We are pleased to advance our collaboration with VinES and become its strategic and long-term recycling partner for all batteries and battery materials generated by VinES in Vietnam," says Tim Johnston, co-founder and executive chair of Li-Cycle. "This agreement supports our shared goals of creating a sustainable and closed-loop battery supply chain. It also advances Li-Cycle's position as the industry's preferred global recycling partner as we continue to strengthen our commercial relationships and scale our innovative and environmentally friendly battery recycling technologies around the world."
VinES and Li-Cycle will also continue to explore global recycling solutions for VinFast, a global electric vehicle (EV) manufacturer in Vietnam and Southeast Asia.
VinES and VinFast are part of Vingroup. VinFast has expanded its business to the North American and European markets. VinES is a company that specializes in the research, development, and manufacturing of advanced batteries for mobility and energy storage applications. The company has recently commissioned a lithium-ion battery cell manufacturing facility in Hai Phong, Vietnam, and expects to further expand its production capacity in the country.
