Li-Cycle Announces Comprehensive Leadership Transition and Operational Restructuring Amid Strategic Revi
Li-Cycle Holdings Corp. a leading global company specializing in lithium-ion battery resource recovery, has announced a series of significant leadership and operational changes as it undertakes a strategic shift in its business trajectory. The company, known for its patented Spoke & Hub technology and circular approach to battery recycling, is now exploring a potential sale of its business or select assets in response to evolving market dynamics.
To support this strategic review and potential sale, Li-Cycle has retained Hilco Corporate Finance, LLC, along with affiliated entities, to manage and advise on the sales process. Hilco, recognized for its expertise in financial restructuring and asset disposition, will assist the company in evaluating strategic alternatives and optimizing value for stakeholders.
Leadership Transitions Reflect Strategic Pivot
In line with this pivotal juncture, Li-Cycle has initiated several leadership changes aimed at aligning its management structure with its current strategic goals and future direction.
Ajay Kochhar, co-founder and current President and Chief Executive Officer, will step down from his executive roles and the company’s Board of Directors. Effective May 15, 2025, Mr. Kochhar will transition into a senior advisory role, where he will continue to support the company through its strategic sale process.
Since co-founding Li-Cycle in 2016, Kochhar has been instrumental in transforming the startup into a recognized leader in the battery recycling industry. Under his leadership, the company developed and commercialized its proprietary lithium-ion battery recycling process, navigated a successful initial public offering, and expanded its operational footprint across North America. His vision and commitment to sustainable technology have played a foundational role in the company’s growth.
As Li-Cycle embarks on this new phase, the Board of Directors has appointed William Aziz, FCPA, FCA, as Chief Restructuring Officer (CRO). Mr. Aziz brings over three decades of experience in corporate restructuring, having led complex transformation efforts across multiple industries and geographies. His track record includes leadership roles in high-profile restructuring cases such as Walter Energy (Canada and UK), The Toronto Star Group, and U.S. Steel Canada. Aziz currently serves as President and CEO of BlueTree Advisors Inc. and is a member of the Board of Directors of Maple Leaf Foods Inc.
His expertise in turnaround management, multi-party negotiations, and mergers and acquisitions will be vital in guiding Li-Cycle through its strategic review and potential transition to new ownership.
In another leadership development, Craig Cunningham has stepped down from his role as Chief Financial Officer (CFO). Cunningham, who joined the company in March 2024, played a key role in improving the company’s financial systems and reporting capabilities. His contributions during a critical time in the company’s evolution have been noted and appreciated by leadership and stakeholders alike.
To ensure continued financial oversight and strategic guidance, Li-Cycle has appointed Michelle Faysal, FCPA, FCA, as interim CFO. Ms. Faysal is a seasoned financial executive and consultant with extensive experience supporting organizations through transformation, growth, and restructuring. She brings a robust background in financial governance and corporate advisory, including more than two decades at Ernst & Young LLP. Her expertise will support Li-Cycle as it navigates complex financial and operational decisions during this transitional period.
Jacqui Dedo, independent Chair of Li-Cycle’s Board of Directors, acknowledged the dedication of the leadership team and the importance of the company’s mission in today’s energy landscape. “Li-Cycle’s mission and technology provide a critical capability in meeting the growing global need for materials recovery and energy security,” said Dedo. “On behalf of the Board, I would like to thank all of our stakeholders for their continued support of our important mission. I extend special thanks to Ajay for his visionary leadership and to our employees for their unwavering commitment to the company.”
Operational Realignments to Preserve Liquidity and Support Sale Process
Alongside the leadership restructuring, Li-Cycle is implementing operational adjustments designed to preserve liquidity and streamline its footprint in support of the ongoing sales process.
The company has initiated the process to suspend operations at its Arizona Spoke and Alabama Spoke recycling facilities. These actions are being undertaken in a controlled and compliant manner to ensure safety, environmental responsibility, and regulatory adherence. The decision to curtail operations at these sites is part of a broader cost-optimization strategy as the company aligns resources with near-term objectives.
As a direct consequence of the operational suspension, approximately 85 employees at the Arizona and Alabama facilities will be furloughed. The company has committed to executing the furlough process with transparency and empathy, offering support and guidance to affected employees wherever possible.
In addition to site-specific furloughs, Li-Cycle is also reducing its corporate workforce by approximately 32 positions. These reductions are concentrated at the company’s Toronto headquarters and are aimed at resizing the organization in response to current financial realities and the company’s strategic direction.
Despite these difficult but necessary measures, Li-Cycle remains committed to its core technology and long-term vision of contributing to a sustainable battery supply chain. The company continues to emphasize environmental stewardship and operational integrity even as it navigates a period of transformation.
Li-Cycle’s restructuring efforts signal a significant shift in its operational model, driven by changing market conditions and the need for strategic realignment. The combination of leadership transitions, operational reductions, and the initiation of a potential sales process illustrates the company’s proactive approach to navigating industry headwinds.
As the energy storage and electric vehicle sectors continue to mature, the demand for responsible lithium-ion battery recycling remains high. Li-Cycle’s differentiated Spoke & Hub model and proprietary hydrometallurgical process have positioned it as a leader in this field, offering sustainable solutions to global supply chain challenges.
The coming months will be critical for Li-Cycle as it evaluates potential buyers and strategic partners, manages cost efficiency, and maintains its technology leadership. With experienced executives like William Aziz and Michelle Faysal steering the organization through its next chapter, stakeholders can expect a disciplined approach focused on maximizing value and preserving the company’s core mission.
