Tuscaloosa Location Revealed For Lithium Battery Recycling Plant

TUSCALOOSA, AL — The Tuscaloosa County Airport Industrial Park has been announced as the home for a new commercial lithium-ion battery recycling facility that will support the shift to electrical vehicle manufacturing at Mercedes-Benz U.S. International in Vance.

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The Tuscaloosa County Economic Development Authority (TCEDA) revealed the official location this week, after Patch reported the initial announcement by Mississauga, Canada-based Li-Cycle Holdings Corp. in early September. When the announcement was made, no word was given as to its location in Tuscaloosa County.

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The Tuscaloosa County Industrial Development Authority approved a tax abatement package Thursday for the company, which will make it exempt from noneducational sales and use taxes for purchases of equipment and building materials during the construction phase of the project and an abatement of the noneducational ad valorem taxes on real and personal property for up to five years.

The project is expected to invest $18.7 million in land, building, and equipment, and is projected to create 78 new, high paying jobs by the end of its third year of operations.

TCEDA officials say the company will be eligible for tax abatements in an estimated amount of $1,168,554, after the Authority's Board approved the package Thursday.

What's more, TCEDA said during the first 10 years of operations, the project is estimated to contribute more than $1.2 million in tax revenue in non‐abated taxes, including education taxes, from initial purchases alone.

TCEDA also estimates the project will contribute more than $8.1 million in certain taxes generated from the company and direct employee spending during its first 20 years in operations.

The new plant locating to the Airport Industrial Park represents a big win for local economic development officials, as a longterm plan hopes to see the build-out of additional manufacturing and support facilities on the airport's campus.

Patch reported in July that proposed additions for the airport in the future could include a cargo ramp for customers like MBUSI, along with a solar farm to help offset electrical use on the airfield.

The new Tuscaloosa County location represents the company’s fourth recycling facility, or Spoke.

The Alabama Spoke is projected to commence operations by the middle of 2022, TCEDA said on Thursday.

Once operational, the Alabama Spoke is expected to create more than 30 new jobs initially and even more in the future.

The publicly-traded company, which trades on the NYSE under the symbol LICY, says the new recycling facility will have an initial capacity of up to 5,000 tonnes of battery manufacturing scrap and end-of-life batteries per year, which will boost the company's North American recycling capacity to 25,000 tonnes per year.

Additionally, Li-Cycle said the new concept in Tuscaloosa is also being developed to accommodate a second 5,000-tonne processing line, which would increase capacity at the Tuscaloosa plant to 10,000 tonnes per year, and Li-Cycle's total North American recycling capacity to 30,000 tonnes per year.

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