Peridot Acquisition Corp. and Li-Cycle Corp.
TD Ameritrade Interview with Li-Cycle
February 17, 2021
But again, thats a transformative way to deal with these batteries, away from this historical mindset
around waste processing and into really valorizing and getting up to, as we do, 95% recoveries of the materials and all types of lithium-ion batteries. So to your question, technology is a very, very core part
of the moat. But so is commercial aspects. And the first mover advantage is good, but thats not really what we rely on. Its the moat that weve built and were stepping up further on top.
Oliver Renick
Where does the majority of the revenue
come in from? Does it come in from the, say, a car company that needs to have an expert to throw this stuff away? Does it come from a government or a grant that says, hey, we dont want to just burn these things? Were going to incentivize
a process like yours. Or does it come from the end products that you sell? Break that down.
Ajay Kochhar
Its a third. Great question. The historical way that this industry has been working, and Ill split into two, whats been happening versus what
we do. Yeah, the way its been happening has been heavy dumping fees, heavy tipping fees, where companies havent really tried to innovate or have used legacy technology to try and recover materials from these batteries. What we do, our
bulk of our revenue is really from the recovery of those end products. 90% to 95% of our forecasted revenue, which is public for this quarter today, is from the recovery of lithium and nickel and cobalt and copper and much more. And thats
really turning this industry on its head because, frankly, thats what customers want.
We dont rely on government subsidies. We dont
rely on government grants. Thats helpful if its there, an additive. But we dont want to be reliant on it because ultimately, youre coming back to first principles. Its the consumer, right? If youre buying an EV,
and already, the costs are coming down with batteries, and thats good, its helping, but its a little prohibitive, right, for most people, the prices where theyre at. A big part of that is the raw materials. Over 70% of the
cost of the battery is going to be, basically, raw materials. So recycling is a cheaper source than mining long term, the way that we do it. And were ultimately going to help with driving down that cost, giving security of supply and,
therefore, helping proliferate more EVs, which is what, of course, is needed to really make this happen from a client perspective.
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