Switzerland-based Glencore has proposed acquiring Canadian EV battery recycler Li-Cycle, which has faced severe financial and operational challenges. Li-Cycle's valuation has plunged nearly 99% from its peak, and the company has struggled with liquidity issues, mounting losses, and paused construction of its Rochester, N.Y., project, which has seen costs escalate to $960 million. Glencore, a major debt holder in Li-Cycle, has invested $275 million in the company since 2022 and holds convertible debt tied to 84 million shares. The proposal, outlined in a March 14 letter, seeks to address Li-Cycle's capital structure and operational difficulties. The U.S. Department of Energy had previously approved a $475 million loan for Li-Cycle, but the company has been unable to draw on it due to unmet conditions. Li-Cycle's board has formed a special committee to evaluate Glencore's proposal, though there is no guarantee a deal will proceed. Following the disclosure of the proposal, Li-Cycle's stock surged by 55% and rose an additional 32%, closing at 39 cents per share, a fraction of its $114 peak in February 2021.