Executive Summary

Record quarterly revenue of $8.4M (+133% YoY) with materially lower SG&A (-39% YoY) narrowed net loss to $8.2M; however, cost of sales remained well above revenue and cash fell to $57.0M at quarter-end, underscoring near‑term liquidity risk .
Strategic focus unchanged: closing the U.S. DOE loan (up to $375M) remains top priority; Rochester Hub MHP scope total project cost held at ~$960M, while “cost to complete” was refined to ~ $490M (from ~$504M in Q1), and Ontario Spoke moves from pause to closure to prioritize Gen‑3 Spokes .
Commercial traction improved: ~40% of Q2 feedstock were EV battery packs; four of top five customers were large global EV OEMs; recycling services drove revenue mix gains; Q2 produced ~1,394 tonnes of black mass and sold ~1,158 tonnes .
Incremental financing optionality added in/around the quarter: 1‑for‑8 share consolidation to support NYSE compliance and an at‑the‑market equity program of up to $75M; company continues exploring strategic and financing alternatives to bolster liquidity—key catalysts alongside DOE loan documentation and disbursement timing .

What Went Well and What Went Wrong

What Went Well
- “Closing the U.S. DOE loan remains our top priority,” with progress on “key technical, financial and legal workstreams” toward definitive documentation; MHP scope technical work is “now quite advanced” .
- Execution and mix: record revenue ($8.4M), higher recycling services revenue ($3.2M vs. $0.5M YoY), and SG&A down 39% to $15.3M on restructuring/cost actions .
- Operational KPIs: ~40% of feedstock were EV packs; black mass production ~1,394 tonnes and sales ~1,158 tonnes; Germany Spoke achieved ISO certifications .
What Went Wrong
- Unit economics remain pressured: total cost of sales ($19.4M) still far exceeds revenue ($8.4M); adjusted EBITDA loss improved but remained sizeable at $(23.4)M .
- Liquidity draw: cash and equivalents fell to $57.0M (from $109.1M in Q1), with Q2 operating cash outflow of $(37.3)M; management is “exploring financing and strategic alternatives” .
- Network rationalization signals constraints: Ontario Spoke is transitioning from pause to closure to focus on Gen‑3 Spokes; Rochester Hub still requires DOE loan plus additional base equity before drawdowns .

Financial Results

Metric ($USD)	Q2 2023	Q1 2024	Q2 2024
Total Revenue ($M)	$3.6	$4.2	$8.4
Product Revenue ($M)	$3.1	$1.9	$5.2
Recycling Service Revenue ($M)	$0.5	$2.3	$3.2
Total Cost of Sales ($M)	$20.2	$16.8	$19.4
SG&A ($M)	$24.9	$31.7	$15.3
Other Income (Expense) ($M)	$10.9	$(92.5)	$18.7
Net Loss ($M)	$(31.9)	$(136.7)	$(8.2)
Adjusted EBITDA Loss ($M)	$(41.3)	$(27.4)	$(23.4)
Loss per Share (basic/diluted)	$(1.45)	$(0.76)	$(0.36)

Notes: On June 3, 2024, Li‑Cycle completed a 1‑for‑8 share consolidation to support NYSE compliance; outstanding and per‑share figures reflect reporting at the time and may not be retroactively restated in prior periods .

By revenue stream (mix and YoY):

Revenue Stream ($USD)	Q2 2023	Q2 2024	YoY Change
Product Revenue	$3.1M	$5.2M	+$2.1M
Recycling Service Revenue	$0.5M	$3.2M	+$2.7M

KPIs and balance sheet highlights:

KPI	Q1 2024	Q2 2024
Black mass produced (tonnes)	—	~1,394
Black mass and equivalents sold (tonnes)	946	1,158
EV battery packs as % of feedstock	~41%	~40%
Cash & Cash Equivalents ($M)	$109.1	$57.0
Net cash used in operating activities ($M)	$(29.1)	$(37.3)
Capex ($M)	$6.2 (Q1)	$15.4 (H1)

Guidance Changes

The company did not issue quantitative revenue/EPS guidance. Key project and strategic updates versus prior communications are below.

Metric	Period	Previous Guidance/Status	Current Guidance/Status	Change
DOE Loan (up to $375M)	2024	Working toward closing conditional commitment	Progressing toward definitive documentation; additional financing required for base equity before drawdown	Maintained path (process ongoing)
Rochester Hub – Total Project Cost (MHP scope)	Multi‑year	~ $960M	~ $960M unchanged	Maintained
Rochester Hub – Cost to Complete (MHP)	2024+	~ $504M estimate incl. cash spend to 3/31/24	~ $490M after local‑market refinement	Lowered
Spoke Network Footprint	2024	Ontario Spoke paused since Nov-2023	Transitioning Ontario Spoke to closure; prioritize Gen‑3 Spokes	Rationalized footprint

Earnings Call Themes & Trends

Topic	Previous Mentions (Q4 2023 and Q1 2024)	Current Period (Q2 2024)	Trend
DOE Loan/Financing	Continued work on $375M DOE loan; Glencore $75M convertible to bolster liquidity (Q1)	Step 5 of DOE process; advancing definitive documentation; needs additional financing for base equity prior to draw	Steady progress; financing need explicit
Rochester Hub (MHP scope)	Confirmed MHP viability; refining costs with local market (Q1)	MHP technical work “quite advanced”; cost to complete ~ $490M; total cost ~ $960M unchanged	Technical clarity improving; cost discipline
Spoke Strategy/Throughput	Prioritizing Gen‑3 Spokes; slowed throughput in parts of network (Q1)	Ontario Spoke to close; Germany Spoke ISO certifications; throughput optimization focus	Optimization, quality systems progress
Commercial/Feedstock	Signed/expanded agreements with major EV OEMs; growing EU footprint (Q1)	Four of top five Q2 customers are large EV OEMs; ~40% feedstock EV packs; widened EU footprint	Broadening OEM ties, more EV packs
Macro/Commodities	Acknowledged commodity price pressure (Q1)	Management views project accretive “even at current prices”; DOE uses conservative decks for debt underwriting	Balanced outlook; sensitivity managed
Policy/Localization	IRA/tariffs supportive backdrop referenced (Q1 FY)	Emphasized localization tailwinds in U.S./EU; potential tariffs supportive	Policy support reinforced

Management Commentary

“Closing the U.S. DOE loan remains our top priority. We continue to work closely with the DOE... to advance towards definitive financing documentation and satisfying conditions precedent for loan disbursements.” — Ajay Kochhar, CEO .
“We refined the cost estimates... our current estimated cost to complete the Rochester Hub project is substantially similar at approximately $490 million for the MHP scope... [and] the total project cost estimate... remains the same at approximately $960 million.” — Ajay Kochhar .
“During the quarter, our Spokes produced approximately 1,394 tons of black mass... EV battery packs represented approximately 40% of total battery materials processed... Germany Spoke secured ISO certifications.” — Ajay Kochhar .
“Highlights include record quarterly revenue and lower SG&A... Total revenue increased 133% to $8.4 million... SG&A decreased 39% to $15.3 million.” — Craig Cunningham, CFO .
“As of June 30, 2024, Li‑Cycle has cash and cash equivalents of $57 million... mainly due to higher working capital and investing activities.” — Craig Cunningham .

Q&A Highlights

Rochester review and commodity price sensitivity: Management separated technical and financial tracks; with refined CapEx estimates and DOE as cornerstone, they still see the basket economics as accretive “even at current prices” for nickel, cobalt and lithium .
DOE underwriting price deck: DOE uses conservative, debt‑appropriate commodity assumptions rather than bullish equity decks; specifics not disclosed, but management acknowledged the framework .

Estimates Context

Wall Street consensus (S&P Global) for Q2 2024 EPS and revenue was unavailable via our S&P Global tool mapping for LICY at the time of analysis, so we cannot assess beats/misses versus consensus. Values would normally be retrieved from S&P Global.

Key Takeaways for Investors

Liquidity is the near‑term swing factor: cash fell to $57.0M with Q2 operating burn of $(37.3)M; ATM ($75M capacity) and strategic alternatives provide options, but DOE loan closing and required base equity are gating items .
Operating traction is improving: record revenue, rising service revenue contribution, and lower SG&A signal better operating leverage once scale improves; unit costs remain elevated relative to revenue base .
Rochester Hub is the cornerstone: total project cost steady at ~$960M and cost‑to‑complete refined to ~$490M; definitive DOE documentation and capital stack clarity are potential catalysts for re‑rating .
Focused network strategy: closing Ontario Spoke and prioritizing Gen‑3 Spokes with EV pack processing should support throughput, customer value, and potentially unit economics over time .
Customer/market positioning: deepening relationships with large EV OEMs and growing EU footprint support medium‑term volume visibility; policy localization trends (IRA, EU) are tailwinds .
Trading setup: headlines on DOE loan execution, liquidity actions (ATM usage or strategic financing), and additional customer wins are likely to drive near‑term stock moves; watch Q3 operational/financing updates .

Citations

Q2 2024 press release and financials:
Q2 2024 earnings call transcript:
Q1 2024 press release & transcript:
FY 2023 press release:
Other relevant Q2 2024 releases: Share consolidation (1‑for‑8) ; ATM program up to $75M

Li-Cycle Holdings Corp. (LICY)·Q2 2024 Earnings Summary