The company was approved for $375 million to construct a battery recycling plant.

Lithium is one of the most important minerals in the modern age, serving as the base of batteries big and small. While the United States still has a healthy supply of lithium, a large portion of that supply is regularly wasted in the form of discarded batteries. In an effort to shore up the lithium supply and cut down on battery waste, recycling company Li-Cycle has been given the green light on a new operation.

This week, the company was approved for a $375 million loan from the US Department of Energy to construct a new battery recycling plant. While Li-Cycle already operates several plants around the country, this new plant would take their operation further, recycling the lithium from wasted batteries into fully usable lithium carbonate, plus nickel and cobalt.

“Recycling is an unappreciated, or not as appreciated, alleviator of that supply need,” Li-Cycle co-founder and CEO Ajay Kochhar told CNBC. “I think of course we need both primary, meaning mine sources, and secondary…every unit counts of lithium, nickel, cobalt. I think with the overlay of the IRA and the overlay of the corporate targets around sourcing for these materials, recycling is going to be very important.”

Li-Cycle is pleased to announce that it has entered into a conditional commitment for a $375 million loan from the U.S. Department of @ENERGY for the continued development of its #Rochester Hub facility. Complete details in today’s press release: https://t.co/ENHPC5B2pT $LICY

— Li-Cycle® (@li_cycle) February 27, 2023

“Everybody’s scrambling to get units. Every unit counts. Being an alleviator – a domestic source, a cleaner source, is super helpful to our customers,” he added, noting that over the next decade, recycled lithium will be vital for ongoing energy needs.