A battery recycling company urged by the Biden administration to file for $375 million in green energy loans in November, warning investors this week that it is at risk of bankruptcy. [emphasis, links added]
Li-Cycle Holdings’ annual report to the SEC on Monday stated that it “has caused huge losses since its inception” and had “substantial doubts” about its ability to continue operations.
Two days after former President Joe Biden lost his November election, the Department of Energy's loan program office finally completed a loan from LI-CYCL.
It is part of a series of last-minute loan approvals issued by the Biden Loans Office in the last few weeks of the administration.
Li-Cycle CEO Ajay Kochhar said he was initially reluctant to apply for a loan because he was worried about whether his company was struggling financially and able to repay the government.
But Biden's green energy loan tsar Jigar Shah urged him to move forward. “Bring your butt to Pittsburgh,” Shaa said. Wall Street Journal. There, the two meet and have coffee and move towards the deal.
Li-Cycle is one of several DOE loan recipients facing financial turmoil, reflecting the viability issues of the iconic green energy lending program that plagued the Biden administration.
Sunnova Energy, a solar panel company, DOE approved a $3 billion loan guarantee in 2023 and is negotiating with creditors after warning the company was on the verge of bankruptcy last month.
Plun Power, a battery company that received $1.6 billion in loan guarantees in the final week of the Biden administration, announced that it would lay off 200 workers in New York last week.
It is not clear how much money has been allocated in the Biden era. Donald Trump ordered a federal funding program to be frozen after taking office, and the Doe did not answer questions about Sunni loan guarantees.
Li-Cycle said it has not received any money from the administration yet, but even if Trump wants to give the company money, Currently, it does not have enough money to meet the federal requirements needed to obtain a loan, The company disclosed on Monday.
Reading break on free beacon
