Li-Cycle Holdings Corp (LICY) 2022 Q2 法說會逐字稿

Good day. My name is Britney, and I will be your conference operator today. At this time, I would like to welcome everyone to the Second Quarter 2022 Li-Cycle Holdings Call and Webcast. (Operator Instructions) After the speakers remarks, there will be a question-and-answer session. (Operator Instructions)

再會。我的名字是布蘭妮，今天我將成為您的會議接線員。在這個時候，我想歡迎大家參加 2022 年第二季度 Li-Cycle 控股電話會議和網絡直播。 （操作員說明）演講者發言後，將進行問答環節。 （操作員說明）

I would now like to turn the call over to Nahla Azmy, Head of Investor Relations. Please go ahead.

我現在想將電話轉給投資者關係主管 Nahla Azmy。請繼續。

Thank you, Britney. Good morning, and thank you, everyone, for joining us today for Li-Cycle's review of our second quarter 2022 results ended April 30. We will start today with formal remarks from Ajay Kochhar, Co-Founder, President and Chief Executive Officer; Tim Johnston, Co-Founder and Executive Chairman; and Debbie Simpson, Chief Financial Officer. We will then follow with a Q&A session. Ahead of this call, Li-Cycle issued a press release and a presentation, which can be found on the Investor Relations section of our website at investors.li-cycle.com.

謝謝你，布蘭妮。早上好，感謝大家今天加入我們，參與 Li-Cycle 對截至 4 月 30 日的 2022 年第二季度業績的審查。今天，我們將從聯合創始人、總裁兼首席執行官 Ajay Kochhar 的正式講話開始； Tim Johnston，聯合創始人兼執行主席；和首席財務官黛比辛普森。然後，我們將進行問答環節。在此次電話會議之前，Li-Cycle 發布了一份新聞稿和一份演示文稿，可在我們網站 Investors.li-cycle.com 的投資者關係部分找到。

On this call, management will be making statements based on current expectations, plans, estimates and assumptions, which are subject to significant risks and uncertainties. Actual results could differ materially from our forward-looking statements if any of our key assumptions are incorrect including because of factors discussed in today's press releases, during this conference call and in our past reports and filings with the U.S. Securities and Exchange Commission and the Ontario Securities Commission in Canada. These documents can be found on our website at investors.li-cycle.com. We do not undertake any duty to update any forward-looking statements, whether written or oral, made during this call or from time to time to reflect new information, future events or otherwise, except as required.

在這次電話會議上，管理層將根據當前的預期、計劃、估計和假設發表聲明，這些預期、計劃、估計和假設受到重大風險和不確定性的影響。如果我們的任何關鍵假設不正確，包括由於今天的新聞稿、本次電話會議以及我們過去向美國證券交易委員會和安大略省提交的報告和文件中討論的因素，實際結果可能與我們的前瞻性陳述存在重大差異加拿大證券委員會。這些文件可在我們的網站investors.li-cycle.com 上找到。我們不承擔任何義務更新在本次電話會議期間或不時做出的任何前瞻性陳述，無論是書面的還是口頭的，以反映新信息、未來事件或其他情況，除非需要。

With that, I'm pleased to turn the call to Ajay.

有了這個，我很高興將電話轉給 Ajay。

Thank you, Nahla, and good morning. We are pleased you could join us to discuss the significant achievements during the past quarter. Strategically, we are positioning Li-Cycle's Spoke & Hub integrated network as a long-term preferred recycling partner and supplier of lithium-ion battery materials, particularly in North America and Europe.

謝謝你，Nahla，早上好。我們很高興您能與我們一起討論上個季度的重大成就。在戰略上，我們將 Li-Cycle 的 Spoke & Hub 集成網絡定位為鋰離子電池材料的長期首選回收合作夥伴和供應商，尤其是在北美和歐洲。

Beginning on Slide 3, with highlights which Tim, Debbie and I will cover in more detail later. On the commercial front, we completed milestone, long-term commercial contracts with Glencore, LG Chem and LG Energy Solution, together with LG, leading participants in the global battery supply chain. On operational level, we operationalized the Arizona Spoke and made advancements on the construction of the Rochester Hub. And on the financial front, we further strengthened our balance sheet through a total of $250 million in funding from the Glencore note and the LG investment.

從幻燈片 3 開始，我將在後面詳細介紹 Tim、Debbie 和我的亮點。在商業方面，我們與 Glencore、LG Chem 和 LG Energy Solution 以及全球電池供應鏈的主要參與者 LG 完成了具有里程碑意義的長期商業合同。在運營層面，我們實施了亞利桑那輻條，並在羅切斯特樞紐的建設方面取得了進展。在財務方面，我們通過嘉能可票據和 LG 投資的總計 2.5 億美元資金進一步加強了我們的資產負債表。

Before reviewing our progress in executing on our commercial strategy, on Slides 4 through 6, I would address market trends, including the supply and demand fundamentals for critical battery materials and the growing need for domestic sources of supply.

在回顧我們在執行商業戰略方面的進展之前，在幻燈片 4 到 6 上，我將討論市場趨勢，包括關鍵電池材料的供需基本面以及對國內供應來源日益增長的需求。

Turning to Slide 4. Secular trends and geopolitical concerns are accelerating the movement to attain energy independence and to address global climate change, favoring faster electrification of our transportation system. As a result, global incumbents and emerging automotive OEMs are accelerating their production goals for electric vehicles, and many have announced they are phasing out internal combustion engine vehicles. On a global scale, this trend is driving a projected growing deficit in the supply of critical battery materials this decade.

轉到幻燈片 4。長期趨勢和地緣政治問題正在加速實現能源獨立和應對全球氣候變化的運動，有利於我們的交通系統更快地電氣化。因此，全球老牌企業和新興汽車原始設備製造商正在加速實現電動汽車的生產目標，許多企業已宣布將逐步淘汰內燃機汽車。在全球範圍內，這一趨勢正在推動本十年關鍵電池材料供應預計日益短缺。

The pace of development of supply is being outstripped by the continued and rapid growth of EV demand as an accelerating secular trend in this industry. This underscores the importance of incorporating recycled metals into the supply chain to help augment supply and increasingly localized production. Our total addressable market or TAM for lithium-ion batteries available for recycling continues to grow, even from our last quarter update. The TAM for North America has increased by more than 170% since year-end 2021 levels and Europe by more than 330% for a combined increase for both regions of more than 200%. This meaningful step change is largely driven by increased battery manufacturer mega factory investments to keep pace with EV OEM anticipated demand.

電動汽車需求的持續快速增長正在超越供給的發展步伐，這是該行業加速的長期趨勢。這強調了將回收金屬納入供應鏈以幫助增加供應和日益本地化生產的重要性。我們的可回收鋰離子電池的總潛在市場或 TAM 繼續增長，即使從我們上一季度的更新來看也是如此。自 2021 年底以來，北美的 TAM 增長了 170% 以上，歐洲的 TAM 增長了 330% 以上，這兩個地區的總增幅超過了 200%。這一有意義的步驟變化主要是由電池製造商增加大型工廠投資以跟上 EV OEM 預期需求的步伐。

Turning to Slide 5. Not only our key battery metals estimated to be in a growing supply deficit, but importantly, the top 3 regions that control primary and post-processing supply sources for these battery materials are outside of North America and Europe. Given these dynamics, the need to accelerate the domestic development of the battery supply chain to keep pace for demand is abundantly clear.

轉到幻燈片 5。估計不僅我們的主要電池金屬供應短缺日益嚴重，而且重要的是，控制這些電池材料的初級和後加工供應來源的前 3 個地區不在北美和歐洲。鑑於這些動態，加速國內電池供應鏈發展以跟上需求步伐的必要性非常明顯。

Turning to Slide 6. A number of new public policy programs in the U.S. support the development of domestic supply sources from these critical materials. Here, we highlight a couple of significant government programs designed to provide financial support to facilitate domestic expansion of the battery supply infrastructure, essentially deeming this to be a critical strategic industry.

轉到幻燈片 6。美國的一些新公共政策計劃支持從這些關鍵材料開發國內供應來源。在這裡，我們重點介紹了一些旨在提供財政支持以促進電池供應基礎設施在國內擴張的重要政府計劃，本質上認為這是一個關鍵的戰略產業。

Now let's shift to Li-Cycle's commercial strategy and our recently completed global partnerships, bolstering our ability to capitalize on these market trends and accelerating our path to sustainable regional closed loop battery supply chains.

現在讓我們轉向 Li-Cycle 的商業戰略和我們最近完成的全球合作夥伴關係，增強我們利用這些市場趨勢的能力，並加快我們通往可持續區域閉環電池供應鏈的道路。

Turning to Slide 7. For high-level background on our new partners in this critical and growing industry. On the far left, Glencore is a leading provider of primary metals for lithium-ion batteries in electric vehicles. Importantly, they are a top producer of cobalt and a top 3 producer of Class 1 nickel globally. For context, Class 1 nickel is used in lithium-ion battery production. On the far right, LG Chem is a leading global chemical company with expertise in active battery materials manufacturing. LG Energy Solutions, with battery production sites in the U.S., Poland, South Korea and China is one of the largest global lithium-ion battery manufacturers for electric vehicles. LG has announced multibillion-dollar investment commitments to grow the battery business with plans to establish robust battery cell production capacity in North America and Europe.

轉到幻燈片 7。了解我們在這個關鍵且不斷發展的行業中的新合作夥伴的高級背景。在最左邊，嘉能可是電動汽車鋰離子電池初級金屬的領先供應商。重要的是，它們是全球最大的鈷生產商和 1 類鎳的前三名生產商。就上下文而言，1 類鎳用於鋰離子電池生產。在最右邊，LG Chem 是一家全球領先的化學公司，在活性電池材料製造方面擁有專業知識。 LG Energy Solutions 在美國、波蘭、韓國和中國設有電池生產基地，是全球最大的電動汽車鋰離子電池製造商之一。 LG 宣布了數十億美元的投資承諾，以發展電池業務，併計劃在北美和歐洲建立強大的電池生產能力。

Both LG and Glencore has designated Li-Cycle as a preferred recycling partner. Li-Cycle's delivery, a closed loop solution for securing LG's growing battery material supply needs in North America and Glencore has the ability to combine its global network as a leading primary producer of recycled metals with Li-Cycle's recycling capabilities. These partnerships are expected to accelerate a path to the circular economy for lithium-ion batteries in North America and Europe. With these strategic partners, Li-Cycle has the opportunity to bring in direct and indirect vertical integrated solution between broader and more diversified global customer base within the battery supply chain universe.

LG 和嘉能可都指定 Li-Cycle 作為首選的回收合作夥伴。 Li-Cycle 的交付是一種閉環解決方案，可確保 LG 在北美不斷增長的電池材料供應需求，嘉能可能夠將其作為領先的再生金屬初級生產商的全球網絡與 Li-Cycle 的回收能力相結合。這些合作夥伴關係有望加速北美和歐洲鋰離子電池循環經濟的發展。通過這些戰略合作夥伴，Li-Cycle 有機會在電池供應鏈領域內更廣泛、更多樣化的全球客戶群之間引入直接和間接的垂直集成解決方案。

Turning to Slide 8. The recently completed long-term intake and off-take commercial agreements with Glencore and LG are expected to deliver significant economic value to Li-Cycle. These new partnerships complement the existing Li-Cycle commercial agreements such as with tractors. I'll provide more color on the Glencore agreements first. These are long-term agreements with a 10-year-plus term beginning August 1 of this year. Importantly, these agreements enable us to jointly develop the opportunities for our spokes, secure incremental black mass supply to our Hubs and optimizing the black mass sales, commercials, expand the market for our battery grade end products produced by Hubs, secured off-take for the main byproducts produced at our Spoke & Hub network; and finally, obtaining secured supply of sulfuric acid, one of the key [ingredients] for our Hubs.

轉到幻燈片 8。最近與嘉能可和 LG 完成的長期採購和承購商業協議預計將為 Li-Cycle 帶來巨大的經濟價值。這些新的合作夥伴關係補充了現有的 Li-Cycle 商業協議，例如拖拉機。我將首先為嘉能可協議提供更多色彩。這些是從今年 8 月 1 日開始為期 10 年以上的長期協議。重要的是，這些協議使我們能夠共同開發我們的輻條機會，確保為我們的 Hubs 增加黑色批量供應，並優化黑色批量銷售、商業廣告，擴大 Hubs 生產的電池級終端產品的市場，確保承購我們的 Spoke & Hub 網絡生產的主要副產品；最後，獲得硫酸的安全供應，這是我們樞紐的關鍵[成分]之一。

Next, regarding LG. We completed long-term intake and off-take contracts for battery materials in North America. LG Energy Solutions will supply Li-Cycle with lithium-ion battery scrap for recycling and our Spokes and Li-Cycle will supply LG with off-take from the Rochester Hub.

接下來，關於LG。完成北美電池材料長期進包銷合同。 LG Energy Solutions 將為 Li-Cycle 提供鋰離子電池廢料以供回收利用，我們的輻條和 Li-Cycle 將為 LG 提供來自 Rochester Hub 的承購量。

Turning to Slide 9 to bring this all together. Partnering with Glencore as a leading primary metal source and LG as a leading battery manufacturing source, Li-Cycle's Spoke & Hub Network is well positioned at the intersection of the battery material supply chain. As depicted here, Metal mining is currently the primary source of battery materials to supply cell in auto OEMs. As noted earlier, those sources are largely outside of North America and Europe and are expected to be in supply deficit over time. Through a partnership, combining Glencore's global primary mining network and Li-Cycle's localized recycled sources, we are providing an integrated battery materials platform for global customers, predominantly focused on North America and Europe.

轉到幻燈片 9 將這一切結合在一起。 Li-Cycle 的 Spoke & Hub 網絡與作為領先的主要金屬來源的嘉能可和作為領先的電池製造來源的 LG 合作，處於電池材料供應鏈的交叉點。如此處所述，金屬採礦目前是汽車 OEM 供應電池的主要電池材料來源。如前所述，這些來源主要在北美和歐洲以外，預計隨著時間的推移將出現供應短缺。通過合作，將嘉能可的全球初級採礦網絡和 Li-Cycle 的本地回收資源相結合，我們正在為主要集中在北美和歐洲的全球客戶提供一個集成的電池材料平台。

Battery manufacturing is a key source for recycling feedstock to provide the secondary sources of battery-grade materials. Our contractual arrangements with LG provide Li-Cycle with a nickel-based feedstock from recycling, patented battery-grade nickel sulphate for their battery cell production, hence the term closing the supply chain loop.

電池製造是回收原料以提供電池級材料的二次來源的關鍵來源。我們與 LG 的合同安排為 Li-Cycle 提供了一種鎳基原料，該原料來自回收的、獲得專利的電池級硫酸鎳，用於電池生產，因此該術語關閉了供應鏈循環。

In closing, with respect to our commercial execution. With the strategic partnerships we've announced today, I couldn't be more excited about our growth prospects with our differentiated recycling solution and unique position in the value chain. Our focus continues to be to expand and operationalize our Spoke & Hub Network to meet this increasing market demand. Now I'll turn it over to Tim to provide an operational review.

最後，關於我們的商業執行。通過我們今天宣布的戰略合作夥伴關係，我對我們的差異化回收解決方案和在價值鏈中的獨特地位的增長前景感到無比興奮。我們的重點仍然是擴展和運營我們的 Spoke & Hub 網絡，以滿足不斷增長的市場需求。現在我將把它交給 Tim 來提供操作審查。

Thank you, Ajay. Beginning on Slides 10 and 11, I'll provide an update on our Spoke & Hub Network. As we discussed on prior earnings calls, in order to be a reliable secondary source of battery-grade materials, it is important to secure a sustainable intake of battery materials for recycling. To facilitate this, we are locating our Spokes close to battery and automotive manufacturers, minimizing transportation risks and costs and our innovative process is designed to be chemistry and form factor agnostic. In addition, we are positioning the Spoke network to capture growing volumes on manufacturing scrap to provide a strong base load of materials for our operations. Supplementing this will be end-of-life battery volumes, which should continue to run steadily in the coming decade.

謝謝你，阿傑。從幻燈片 10 和 11 開始，我將提供關於我們的 Spoke & Hub 網絡的更新。正如我們在之前的財報電話會議上所討論的那樣，為了成為電池級材料的可靠二次來源，確保電池材料的可持續攝入以進行回收是很重要的。為了促進這一點，我們將輻條放置在靠近電池和汽車製造商的地方，最大限度地降低運輸風險和成本，我們的創新工藝旨在與化學和形狀因素無關。此外，我們正在定位 Spoke 網絡，以捕捉不斷增長的製造廢料量，從而為我們的運營提供強大的基礎材料負載。補充這一點的將是報廢電池數量，在未來十年內應該會繼續穩定運行。

As you can see on Slide 10, we now have 3 Spokes in operation, including the Arizona Spoke, which became operational at the end of April. The Arizona Spoke is the next generation of our Spoke innovation in terms of scale and processing capability. It is double the capacity of the earlier Spokes and has first of its kind capability for processing 4 electric vehicle battery packs without having to discharge or dismantle. Arizona is quickly being followed by the Alabama Spoke, built to the same specification. This Spoke is coming online on schedule following the build and process learnings from Arizona. These Spoke facilities have been constructed with our proven modular approach at Li-Cycle's Ontario fabrication site for the faster and more cost-effective deployment.

正如您在幻燈片 10 中看到的那樣，我們現在有 3 個輻條在運行，包括在 4 月底開始運行的亞利桑那輻條。 Arizona 輻條是我們在規模和處理能力方面的下一代輻條創新。它的容量是早期輻條的兩倍，並且具有處理 4 個電動汽車電池組而無需放電或拆卸的同類首創能力。阿拉巴馬州輻條很快就緊隨其後，按照相同的規格製造。在亞利桑那州的構建和流程學習之後，此 Spoke 將按計劃上線。這些輻條設施採用我們在 Li-Cycle 安大略省製造基地經過驗證的模塊化方法建造，以實現更快、更具成本效益的部署。

As we optimize our Spokes as a network of facilities, this second-generation innovation is expected to drive a step change in productivity. This will allow us to direct battery feedstock to specific Spoke sites for optimal processing based on feed fit. For example, manufacturing scrap and consumer electronic derived batteries can be flexibly processed at all Spoke sites. For EV battery packs processed through our first generation of Spoke sites such as Ontario and New York require manual disassembly by trained technicians before being processed. With expanded capacity and processing capability in Arizona and Alabama, full EV battery packs can be processed without dismantling, driving to improve efficiency. This combination of different processing sites and capabilities allow Li-Cycle to provide a fit for purpose solution for all lithium-ion battery types and form factors, driving to enhance safety and economics.

隨著我們將 Spokes 優化為設施網絡，這項第二代創新有望推動生產力的進步。這將使我們能夠將電池原料引導到特定的 Spoke 站點，以根據飼料適合度進行優化處理。例如，製造廢料和消費電子衍生電池可以在所有 Spoke 站點進行靈活處理。對於通過我們的第一代 Spoke 站點（例如安大略和紐約）加工的 EV 電池組，在加工之前需要由訓練有素的技術人員手動拆卸。隨著亞利桑那州和阿拉巴馬州的產能和處理能力的擴大，整個電動汽車電池組可以在不拆卸的情況下進行加工，從而提高效率。這種不同加工場所和能力的組合使 Li-Cycle 能夠為所有鋰離子電池類型和外形尺寸提供適合的解決方案，從而提高安全性和經濟性。

A final note. With the upcoming commissioning of the Alabama Spoke, we continue to expect the second half acceleration through our black mass [tighter] production for fiscal year 2022 to be between 6,500 to 7,500 tonnes, which is more than 3x the level of last year.

最後一點。隨著阿拉巴馬輻條的即將投產，我們繼續預計下半年通過我們的黑色質量（更緊）生產將加速到 2022 財年將在 6,500 至 7,500 噸之間，是去年水平的 3 倍以上。

Turning to Slide 11 for an update on the Rochester Hub. As we mentioned in the first quarter, we obtained a key environmental comment for the Rochester Hub, enabling us to move forward with the next stage of project development and construction. During this past quarter, we continued to make progress on several fronts. Specifically, we have locked in the delivery schedule and pricing for the majority of our long lead equipment and purchasing of the construction materials has progressed, providing enhanced confidence in material pricing.

轉到幻燈片 11，了解有關 Rochester Hub 的更新。正如我們在第一季度提到的，我們獲得了羅切斯特樞紐的關鍵環境評論，使我們能夠推進下一階段的項目開發和建設。在過去的這個季度，我們繼續在幾個方面取得進展。具體來說，我們已經鎖定了大部分長鉛設備的交貨時間表和定價，並且建築材料的採購取得了進展，增強了對材料定價的信心。

We continue to monitor and manage material and labor costs and potential supply chain issues to maintain the stated capital cost target. We continue to expect commissioning as planned in 2023. In the coming quarters, we look forward to sharing further exciting construction developments of the Rochester Hub.

我們將繼續監控和管理材料和勞動力成本以及潛在的供應鏈問題，以維持既定的資本成本目標。我們繼續期待在 2023 年按計劃進行調試。在接下來的幾個季度，我們期待分享羅切斯特樞紐的進一步激動人心的建設發展。

Turning to Slide 12 for an update on our European buildout. Similar to North America development strategy, Li-Cycle is targeting Spoke locations in close proximity from battery and electric vehicle manufacturers. Our development of the Norway and German Spokes continues and both are expected to come online in 2023, with a total processing capacity of 20,000 tonnes per year of lithium-ion batteries.

轉到幻燈片 12，了解我們歐洲擴建的最新情況。與北美髮展戰略類似，Li-Cycle 的目標是靠近電池和電動汽車製造商的 Spoke 位置。我們繼續開發挪威和德國輻條，預計兩者都將在 2023 年上線，鋰離子電池的總加工能力為每年 20,000 噸。

Summing it all up on Slide 13. Here, we depict the current portfolio of Spoke & Hub projects in North America and Europe that are expected to come online in 2022 and 2023. I would like to leave you with these key thoughts that underpin our competitive advantages and will drive continued successful rollout of our Spoke & Hub Network strategy.

在幻燈片 13 上進行總結。在這裡，我們描述了北美和歐洲當前的 Spoke & Hub 項目組合，這些項目預計將在 2022 年和 2023 年上線。我想給您留下這些支撐我們競爭力的關鍵思想優勢並將推動我們的 Spoke & Hub 網絡戰略的持續成功推出。

One, we continue to demonstrate the flexibility of our innovative, patent-protected and time-tested processing technology that is chemistry and form factor-agnostic with high recovery rates. Two, our innovative construction technology is scalable and uses standard equipment, allowing for expedited deployment in response to customer demand. Three, our commercial partnerships are diversified with leading local participants in the battery supply chain, providing optionality for capturing market growth. By executing efficiently and growing our spoke and hub integrated network, we anticipate continued commercial expansion, serving the market as a key regional partner for closing the battery material supply loop.

第一，我們繼續展示我們創新的、受專利保護且經過時間考驗的處理技術的靈活性，該處理技術與化學和形狀因素無關，具有高回收率。第二，我們的創新施工技術具有可擴展性並使用標准設備，可根據客戶需求加快部署。第三，我們的商業合作夥伴關係多元化，與電池供應鏈中領先的本地參與者合作，為捕捉市場增長提供了選擇餘地。通過有效執行和發展我們的輻條和樞紐集成網絡，我們預計將繼續進行商業擴張，作為關閉電池材料供應循環的關鍵區域合作夥伴服務於市場。

That concludes my formal remarks. Debbie will now provide a financial update.

我的正式發言到此結束。黛比現在將提供財務更新。

Thank you, Tim, and good morning, everyone. If I could turn your attention to Slide 14 for a review of the second quarter results ended April 30, 2022. Revenues increased to $8.7 million compared to $300,000 in the same quarter last year, driven by increases in product sales volume and metal base prices. Revenue reflected both in quarter product sales of $4.3 million, adjustment of $4 million relating to prior period sales.

謝謝蒂姆，大家早上好。如果我可以將您的注意力轉向幻燈片 14，以查看截至 2022 年 4 月 30 日的第二季度業績。由於產品銷量和金屬基價的增長，收入從去年同期的 300,000 美元增加到 870 萬美元。收入均反映在 430 萬美元的季度產品銷售額中，與前期銷售額相關的 400 萬美元調整。

By way of background, aligning with our contracts and IFRS reporting requirements, we recognize revenues on product sales at the point of delivery to our customers, based on black mass sales volume and prevailing market metal prices. Our customers take title of the materials, and we retain pricing exposure until the related receivables is released asset. As such, both our revenue and receivable balances are remeasured at HP [and for] movements in metal prices between the initial recognition of the sales and the final settlement of the receivable. Hence, the fair market value adjustment in any reported period.

作為背景，根據我們的合同和 IFRS 報告要求，我們根據黑色大眾銷量和現行市場金屬價格在向客戶交付時確認產品銷售收入。我們的客戶擁有材料的所有權，我們保留定價風險直到相關應收款項被釋放資產。因此，我們的收入和應收賬款餘額都在惠普重新計量 [以及] 在銷售的初始確認和應收賬款的最終結算之間的金屬價格變動。因此，任何報告期間的公平市場價值調整。

Black mass produced in the quarter was more than 2x higher than the same quarter last year and slightly higher sequentially. A significant portion of the battery fleet supply for our Spokes in the second quarter with large formats in nature, for example, from energy storage systems and a recent EV recall.

本季度黑色量產比去年同期高出 2 倍以上，環比略高。第二季度為我們的輻條提供了很大一部分電池組，例如，來自儲能係統和最近的電動汽車召回。

As Tim noted, our Arizona Spoke has a first-of-its-kind capability to process these larger packs without discharge or dismantling. In relation to this, we made a deliberate choice to build inventory of this large-format battery feed supply during the quarter for optimal processing at our Arizona facility. As we expand our sources of supply and grow our Spoke Network, we will increasingly be able to optimize recovery rates and capacity utilization at our facility by matching our fleet with the best suited Spoke for processing.

正如蒂姆所指出的，我們的亞利桑那輻條具有首創的能力，可以在不排放或拆卸的情況下處理這些較大的包裝。與此相關，我們慎重選擇在本季度建立這種大尺寸電池饋電供應的庫存，以便在我們的亞利桑那工廠進行優化處理。隨著我們擴大供應來源並發展我們的輻條網絡，我們將越來越能夠通過將我們的車隊與最適合處理的輻條相匹配來優化我們設施的回收率和產能利用率。

Operating expenses for the quarter increased to $30 million compared to $5.6 million during the same period last year, reflecting the ongoing expansion of operations in North America and the early build-out in Europe. The increase was primarily related to personnel costs for operational, corporate, commercial and engineering resources as well as public company comps. In addition, this reflected the higher costs from raw materials and supplies attributable to our increased black mass production. We are being deliberate and balanced in our operating spend, investing in corporate infrastructure that will support our expanded network in 2023 that will drive significant revenues and cash flow economics in years to come.

本季度的運營費用從去年同期的 560 萬美元增加到 3000 萬美元，這反映了北美業務的持續擴張和歐洲的早期擴建。這一增長主要與運營、企業、商業和工程資源以及上市公司的人員成本有關。此外，這反映了由於我們增加黑色批量生產而導致的原材料和供應成本增加。我們在運營支出方面經過深思熟慮和平衡，投資於企業基礎設施，以支持我們在 2023 年擴大的網絡，這將在未來幾年推動可觀的收入和現金流經濟。

Adjusted EBITDA loss was approximately $19 million compared to $5 million for the same period last year. This reflects increased costs associated with the plant expansion of our Spoke & Hub Network in North America and Europe as well as becoming a public company, which we did not incur the same last year, given the timing of our listing in August 2021. I note that the quarter included stock-based compensation of $4.5 million versus $300,000 this time last year. This noncash cost is primarily associated with the continued build-out of Li-Cycle's operational, technical and corporate [mention] as the company progresses towards commissioning of the Rochester Hub.

調整後的 EBITDA 損失約為 1900 萬美元，而去年同期為 500 萬美元。這反映了與我們在北美和歐洲的 Spoke & Hub 網絡的工廠擴建以及成為一家上市公司相關的成本增加，鑑於我們於 2021 年 8 月上市的時間，我們去年沒有發生同樣的情況。我注意到該季度包括 450 萬美元的股票薪酬，而去年同期為 300,000 美元。這種非現金成本主要與 Li-Cycle 的運營、技術和企業 [提及] 的持續建設有關，因為該公司正在推進羅切斯特樞紐的調試。

Moving to Slide 15 to cover the balance sheet. At April end, we had more than $509 million of cash on hand. Subsequently, in May and June, we received a combined total of $250 million in investment proceeds from LG and Glencore, bringing our pro forma cash to approximately $760 million. As a result, we have sufficient liquidity for our capital and operating needs to fund the current pipeline of projects in development. Having achieved this important strategic and financing milestone, we are continuing to be methodical in evaluating multiple sources of capital to optimize the balance sheet and provide future flexibility. As I mentioned before, these include debt-based financing alternatives such as traditional corporate debt, project financing and government-related funding.

移動到幻燈片 15 以涵蓋資產負債表。 4 月底，我們手頭有超過 5.09 億美元的現金。隨後，在 5 月和 6 月，我們從 LG 和嘉能可總共獲得了 2.5 億美元的投資收益，使我們的備考現金達到約 7.6 億美元。因此，我們有足夠的流動資金來滿足我們的資本和運營需求，為目前正在開發的項目提供資金。在實現這一重要的戰略和融資里程碑之後，我們將繼續有條不紊地評估多種資金來源，以優化資產負債表並提供未來的靈活性。正如我之前提到的，這些包括基於債務的融資替代方案，例如傳統的公司債務、項目融資和政府相關融資。

Moving to Slide 16, I'll discuss our longer-term financing strategy. During our first quarter earnings call, I indicated that our financing plan will follow a modular step-based approach to growing our business. I would like to add additional context to what we mean by that. The current network consists a total of 7 Spokes in North America and Europe and 1 Hub in North America targeted to be operational in 2023. This phase of our goal is fully funded and is expected to lead to sustainable cash flows, particularly following commissioning of our Rochester Hub in 2023.

轉到幻燈片 16，我將討論我們的長期融資策略。在我們第一季度的財報電話會議上，我表示我們的融資計劃將採用模塊化的、基於步驟的方法來發展我們的業務。我想為我們的意思添加額外的上下文。目前的網絡共有 7 個位於北美和歐洲的 Spokes 和 1 個位於北美的 Hub，計劃於 2023 年投入運營。我們的這一階段目標資金充足，預計將帶來可持續的現金流，尤其是在我們的調試之後2023 年羅切斯特中心。

As for the future growth prospects, we anticipate a modular approach to capital investment and associated operating expenses. Hand in hand with this, we expect to take a modular rollout approach to the funding requirements that will support these growth prospects. To reiterate, there is a clear delineation between current project pipeline needs, which are fully funded and incremental growth, which is optional and the related financing environment. The foundational growth I've seen through our current Spoke & Hub pipeline is an important part of our operating journey. Executing on our operating plan will expand the breadth of financing returns available to us, enable us to take advantage of additional growth opportunities while optimizing our future cost of capital.

至於未來的增長前景，我們預計資本投資和相關運營費用採用模塊化方法。與此同時，我們預計將採用模塊化推出方法來滿足支持這些增長前景的資金需求。重申一下，當前的項目管道需求（完全資助的）和增量增長（可選）和相關的融資環境之間有明確的界限。我通過我們當前的 Spoke & Hub 管道看到的基礎性增長是我們運營之旅的重要組成部分。執行我們的運營計劃將擴大我們可獲得的融資回報的廣度，使我們能夠利用額外的增長機會，同時優化我們未來的資本成本。

Turning to Slide 17, I would like to close with a recap. The market is anticipated to have a global supply deficit or critical battery materials in the coming decades. This is driving growing momentum for localized or domestic sources of production, accelerating growth in North America and Europe. Li-Cycle is strategically anchoring its Spoke & Hub Network to customer demand. We have executed most of commercial agreements with key strategic global partners to further enhance our leading position as a preferred partner for recycling and resource recovery of critical battery materials in North America and Europe. And we are fully funded with cash on hand that includes both the capital and operating needs to complete the portfolio of Spoke & Hub Network projects and developments.

談到第 17 張幻燈片，我想回顧一下。預計未來幾十年市場將出現全球供應短缺或關鍵電池材料。這正在推動本地或國內生產來源的增長勢頭，加速北美和歐洲的增長。 Li-Cycle 正在戰略性地將其 Spoke & Hub 網絡錨定到客戶需求。我們已與全球主要戰略合作夥伴簽署了大部分商業協議，以進一步提升我們作為北美和歐洲關鍵電池材料回收和資源回收首選合作夥伴的領先地位。我們手頭有充足的現金，包括完成 Spoke & Hub Network 項目和開發組合的資本和運營需求。

That concludes our formal remarks. Operator, we are ready to take questions.

我們的正式發言到此結束。接線員，我們準備回答問題。

(Operator Instructions) We will take our first question from Robin Fiedler with BMO Capital Markets.

（操作員說明）我們將回答來自 BMO 資本市場的 Robin Fiedler 的第一個問題。

I wanted to unpack the quarter a bit, really 3three quick but key questions. So obviously, the black mass production surprisingly didn't improve much quarter-over-quarter. Revenue obviously more than doubled. I guess I'm a little bit surprised, I guess, the Kingston spoke still experiencing some issues there, maybe talk about that a bit? And then obviously, you're benefiting from the just stronger battery metal prices overall. But what was the black mass price specifically in the quarter?

我想稍微解開這個季度的內容，真的是 3three 快速但關鍵的問題。很明顯，黑色的量產令人驚訝地並沒有比上一季度提高多少。收入顯然翻了一番多。我想我有點驚訝，我想，金士頓的發言仍然存在一些問題，也許可以談談這個？然後很明顯，您將從整體上更強勁的電池金屬價格中受益。但是該季度的黑人大眾價格具體是多少？

And then I'm trying to better understand like this fair market adjustment. Maybe you can help us understand how to think about that in the context of like Q1 and Q2? Was there some -- like how should we think about the shift there? Like was some of this revenue, obviously, which was really strong despite like the production issues seemingly still I guess, some of that borrowed from Q1 technically, like maybe just trying to figure out how to model that a bit better going forward?

然後我試圖更好地理解這種公平的市場調整。也許您可以幫助我們了解如何在 Q1 和 Q2 的背景下思考這個問題？有沒有一些——比如我們應該如何看待那裡的轉變？很明顯，其中一些收入確實很強勁，儘管我猜生產問題似乎仍然存在，其中一些從技術上借鑒了第一季度，比如可能只是想弄清楚如何更好地建模未來？

Yes. Robin, it's Ajay. So -- and we will split it into two. So Tim can cover the production part and Debbie will speak about financial parts of the team.

是的。羅賓，我是阿傑。所以——我們將把它分成兩部分。所以 Tim 可以負責製作部分，而 Debbie 將談論團隊的財務部分。

Okay. Perfect. And Robin, so to answer your question in relation to production, one of the things that we've been guiding to is the weighting of the second half of the year in relation to production. So what we're expecting is now Arizona is ramping up and Alabama is due to come online shortly. This will be a significant step change in production.

好的。完美的。羅賓，所以為了回答你關於生產的問題，我們一直在指導的一件事是下半年與生產相關的權重。所以我們期待的是現在亞利桑那州正在加速發展，而阿拉巴馬州將很快上線。這將是生產方面的重大變革。

I would also highlight that what we've been doing is focusing on inventory, and I'm talking about battery feed inventory that relates to the larger format materials. So things like energy storage systems, and we've had a recent EV report that we've been working through. Rochester and Kingston are really our first-generation plants, which are better suited for processing small format material. And so what we expect to report is now that we're increasing the capability and capacity of the network of Spoke facilities that we'll have the ability to direct the top optimal site in order to improve both throughput but also recoveries associated with the different types of battery feeds.

我還要強調，我們一直在關注庫存，我說的是與較大格式材料相關的電池供電庫存。所以像儲能係統這樣的東西，我們最近有一份我們一直在研究的電動汽車報告。 Rochester 和 Kingston 確實是我們的第一代工廠，更適合加工小幅面材料。因此，我們現在期望報告的是，我們正在提高 Spoke 設施網絡的能力和容量，我們將有能力指導最佳最佳站點，以提高吞吐量以及與不同站點相關的恢復類型的電池饋電。

That's a long way of saying (inaudible) and Kingston, specifically. Kingston has been running a lot of large format feeds, which in the future would be directed to one of our newer format plants, which will have increased ability to process that type of material, and will optimize our Kingston and Rochester to focus on small format materials, so a consumer electric dry batteries and manufacturing scrap in order to pass a further increase in (inaudible). No significant impairments to production, more focused on optimizing around our battery feed times.

具體來說，這是一段很長的路要走（聽不清）和金士頓。金士頓一直在運行大量大幅面供料，未來將被定向到我們較新的格式工廠之一，這將提高處理此類材料的能力，並將優化我們的金士頓和羅切斯特以專注於小格式材料，因此消費者的干電池和製造廢料以通過進一步增加（聽不清）。對生產沒有重大影響，更專注於優化我們的電池供電時間。

And then maybe Debbie can tackle the financial part of your question.

然後也許黛比可以解決你問題的財務部分。

Robin, so I will give you some descriptions and then you tell me some objection, your issue. Again, I gave a little bit of an outline in my formal remarks, (inaudible) of operating leases. So let me just kind of walk through that a little bit for a minute and to keep that helpful.

羅賓，所以我會給你一些描述，然後你告訴我一些反對意見，你的問題。再一次，我在我的正式發言中給出了一點大綱，（聽不清）經營租賃。因此，讓我稍微介紹一下，並保持幫助。

So in any (inaudible) revenue, we would say that based on current market prices. And then each period as recall, will require -- if that revenue hasn't been settled, i.e., if we haven't received the receivable balance (inaudible) of that revenue. Then we remeasure both the revenue and the (inaudible) growth out to the market prices (inaudible) and that's its fair market value impact.

因此，在任何（聽不清的）收入中，我們都會根據當前的市場價格說。然後每個時期作為召回，將需要 - 如果該收入尚未結算，即，如果我們沒有收到該收入的應收餘額（聽不清）。然後我們根據市場價格（聽不清）重新衡量收入和（聽不清）增長，這就是它的公平市場價值影響。

So you see in our disclosures this quarter, that actually pulls all that information together into one spot in our financial statements. It is in our financial statements before the (inaudible), we had (inaudible) following impact, so I've now given you a little table of (inaudible) financial statement (inaudible) with the revenue out by the value of the items that were sold in the period. And then it's very much the value of the previous deals (inaudible).

因此，您在本季度的披露中看到，實際上將所有這些信息集中到我們財務報表中的一個位置。這是在（聽不清）之前的我們的財務報表中，我們有（聽不清）以下影響，所以我現在給你一張（聽不清）財務報表（聽不清）的小表格，其中收入按項目的價值計算期間售出。然後它與之前的交易非常有價值（聽不清）。

So in this quarter, our revenue (inaudible) $4.2 million and then fair market value for our (inaudible) is $4 million for our (inaudible).

因此，在本季度，我們的收入（聽不清）420 萬美元，然後我們（聽不清）的公平市場價值是我們（聽不清）的 400 萬美元。

Yes. Just flipping out on, I think, Page 14, and that's (inaudible) remark, that's where we actually provide a breakdown within the actual charge itself on the revenue. And then as Debbie mentioned (inaudible).

是的。只是翻開，我認為，第 14 頁，這是（聽不清）評論，這就是我們實際上在收入的實際收費中提供細分的地方。然後正如黛比提到的（聽不清）。

Okay. And just a follow-up...

好的。只是一個後續...

I'm sorry (inaudible). I think it's really helpful just to reiterate what the (inaudible) said. So black mass produced, you would have expected a bump in that based on our remarks from Q1. But that's an intentional choice spread to hold the leading product and produce it in the right facility, versus putting it through at a higher cost and less optimally in one of our other sites. So we brought Arizona online towards the quarter. We do have to process that inventory to either Rochester or Ontario, but that was not the best economic position. So we chose to move the (inaudible) and we will profit compared to Arizona and ultimately also (inaudible).

對不起（聽不清）。我認為重申（聽不清）所說的話真的很有幫助。如此大量生產的黑色，根據我們在第一季度的評論，您會預料到會出現大幅增長。但這是一個有意的選擇，以保持領先產品並在正確的設施中生產，而不是在我們的其他站點中以更高的成本和不太理想的方式進行生產。所以我們把亞利桑那州帶到了這個季度。我們確實必須將庫存處理到羅切斯特或安大略省，但這不是最好的經濟狀況。因此，我們選擇移動（聽不清），與亞利桑那州相比，我們將獲利，最終也會（聽不清）。

Okay. Sounds good. Maybe we can chat a bit more about that in a follow-up call. But just if I could sneak a second question in. It's been a couple of quarters since you guys have actually specified what you used to call like a 2025 network targets, I guess, like the next leg of growth. It seems like there's a bit more prudence around that now, somewhat understandably so. But it almost sounded like that stage is even more optional now. I think, Debbie, you might have actually used that term specifically.

好的。聽起來不錯。也許我們可以在後續電話中多談一談。但是，如果我可以偷偷問第二個問題。已經有幾個季度了，因為你們實際上已經指定了你們過去所謂的 2025 年網絡目標，我猜，就像下一個增長階段。現在似乎對此更加謹慎，這在某種程度上是可以理解的。但這幾乎聽起來像那個階段現在更加可選了。我想，黛比，你實際上可能專門使用過這個詞。

So maybe if you're able to provide a bit more specificity on how you're thinking about the next leg of growth in terms of timelines and then the size of those plans, kind of seems like the old 2025 targets are unlikely at this stage?

因此，也許如果您能夠更具體地說明您是如何考慮下一個增長階段的時間表以及這些計劃的規模，那麼在現階段似乎不太可能實現 2025 年的舊目標?

I can start, Robin and then maybe Debbie or Tim can add. So yes, I think there are 2 parts to that. The first part is, I guess, elucidating how we think about financial investment decisions or FID, as part of our business. And that was really the purpose of Page 16 and when Debbie was talking through that. So on the one hand, we have a current network in development or operating today, which is the 7 Spoke and 1 hub that is coming. And as a first step, I think of it as a set of stairs, right? So the first set of the stairs that -- on that path and then on its own can be providing sustainable cash flows as Debbie talked about. So that's the one half of the equation when it comes to capital allocation and how we think about what's been approved per se from a financial investment decision.

我可以開始，羅賓，然後也許黛比或蒂姆可以添加。所以是的，我認為有兩個部分。我想，第一部分是闡明我們如何看待金融投資決策或 FID，作為我們業務的一部分。這就是第 16 頁的真正目的，當黛比正在討論這個問題時。因此，一方面，我們目前有一個正在開發或運營的網絡，即即將到來的 7 Spoke 和 1 hub。作為第一步，我認為它是一組樓梯，對吧？因此，正如黛比所說，第一組樓梯——在這條路上，然後靠它自己可以提供可持續的現金流。因此，這就是資本配置的一半，以及我們如何看待金融投資決策本身所批准的內容。

The other part of it is, and to your question is, okay, what's happening in the market and how do we -- our customers, how do we pursue [replying] to that. And you heard it in my remarks, there has been no slowdown in the pace of development of our customers. In fact, it just continues to increase at a blazing pace. So on the other hand, we have ample opportunity. And for us, it's really going to be a decision of scale, siting and continue to work through those work streams, but really it becomes firm on that financial investment position. We may (inaudible) a large part of that and one of the options in there (inaudible) financing, right? So we just really wanted to delineate between what is accrued and need versus the incremental growth that we take advantage.

另一部分是，你的問題是，好吧，市場上正在發生什麼，我們如何——我們的客戶，我們如何追求[回复]。您在我的講話中聽到了，我們客戶的發展步伐並沒有放緩。事實上，它只是繼續以驚人的速度增長。所以另一方面，我們有充足的機會。對我們來說，這實際上將是一個規模、選址和繼續通過這些工作流工作的決定，但實際上它在金融投資頭寸上變得堅定。我們可能（聽不清）其中很大一部分以及其中的一種選擇（聽不清）融資，對吧？因此，我們只是真的想在積累和需求與我們利用的增量增長之間劃定界限。

(inaudible) comments set there, seeing that the significant dollars to fund the business through the purpose of my comments (inaudible) between what we need in this current network, it is actually going to be a very vital business. And then what we believe the growth opportunities from that.

（聽不清）評論設置在那裡，看到通過我在當前網絡中需要的評論（聽不清）的目的為業務提供資金的大量資金，這實際上將是一項非常重要的業務。然後我們相信從中獲得的增長機會。

We will take our next question from P.J. Juvekar with Citi.

我們將與花旗一起回答 P.J. Juvekar 的下一個問題。

This is Patrick Cunningham on for P.J. I had a question on the Rochester Hub. So what are your current expectations for start of production? And what can we expect that ramp-up to look like? And if there's anything -- any uncertainty there? What are the sort of drivers of the moving start date? And is it equipment backlog? Is it hiring? Just any more detail on that would be appreciated.

我是 P.J. 的 Patrick Cunningham 我有一個關於 Rochester Hub 的問題。那麼您目前對開始生產的期望是什麼？我們可以期待這種增長會是什麼樣子？如果有什麼——那裡有任何不確定性嗎？搬家開始日期的驅動因素是什麼？是設備積壓嗎？是招聘嗎？對此的任何更多細節將不勝感激。

I think, Patrick, I'll turn over to Tim and he can address it.

我想，帕特里克，我會交給蒂姆，他可以解決這個問題。

Yes. No problem. Thank you for your question, Patrick. So when it comes to the start-up of the Rochester Hub, we're still guiding to completion and start-up in 2023. That's what we're working towards. That's what we believe that we can achieve. Of course, we are remaining focused on the challenges in the world today in relation to, as you alluded to, labor shortages, material costs, right, et cetera.

是的。沒問題。謝謝你的問題，帕特里克。因此，當談到羅切斯特樞紐的啟動時，我們仍在指導 2023 年完成和啟動。這就是我們正在努力的方向。這就是我們相信我們可以實現的目標。當然，我們仍然專注於當今世界與勞動力短缺、材料成本等相關的挑戰。

How we've been able to address that and we talked about this on the last earnings call as well, we've continued on this path, it is to focus on early procurement wherever we can. And so as I said in my remarks, we procured the majority of the long lead mechanical equipment. We've also managed to progress bulk material purchasing over the last quarter. Now why is this important? Because Patrick, this really drives the schedule. And so we're less, I would say, concerned about material cost growth and more focused on making sure we have those components and materials available for when they're needed.

我們是如何解決這個問題的，我們在上一次財報電話會議上也談到了這一點，我們繼續沿著這條道路前進，盡可能地關注早期採購。正如我在講話中所說，我們採購了大部分長鉛機械設備。在上個季度，我們還設法推進了大宗材料採購。為什麼這很重要？因為帕特里克，這確實推動了日程安排。因此，我想說，我們不太關心材料成本的增長，而是更專注於確保我們在需要時可以使用這些組件和材料。

Our attention now is really turning to focus on the stocking requirements to the construction, and we're ramping up that team as we speak. But at this point in time, we're still guiding completion in 2023 as originally planned.

我們現在的注意力真的轉向了對建築的庫存要求，我們正在加強這個團隊。但目前，我們仍按原計劃在 2023 年指導完成。

In terms of ramp up beyond that, Patrick, we haven't provided any public guidance in relation to this. I will just highlight that this is a [hydrometallurgical] plant using standard processing equipment is what I would consider industry normal for this type of application. And so I think that there's lots of great examples of, let's say, low temperature atmospheric operations and their ability to ramp up relatively.

帕特里克（Patrick），就超出此範圍的提升而言，我們尚未提供任何與此相關的公開指導。我要強調的是，這是一個使用標準加工設備的 [濕法冶金] 工廠，我認為這種應用在行業中是正常的。所以我認為有很多很好的例子，比如說，低溫大氣操作及其相對增加的能力。

Great. And I just had a second -- I had a follow-up. And I saw as part of the Glencore agreement, it looks like there are some arrangements not only for -- on the supply side, but for offtake of black mass and end products. Is this going to be a substantially large offtake partner? And are these volumes contracted to the current tracks agreement? Or does this involve some sort of other agreement?

偉大的。我只有一秒鐘——我有一個跟進。我看到作為嘉能可協議的一部分，看起來不僅在供應方面，而且在黑色大眾和最終產品的承購方面都有一些安排。這將是一個相當大的承購夥伴嗎？這些數量是否與當前的軌道協議簽訂了合同？或者這是否涉及某種其他協議？

Yes. Thanks, Patrick, and I can address that. I mean maybe 2 part for the answer, one, taking a step back, I mean, this is a very transformative deal for the company and we announced this in closing about 2 weeks ago, we actually used today to talk about the strategic aspects. And (inaudible) question that we take opportunity to answer your question.

是的。謝謝，帕特里克，我可以解決這個問題。我的意思是，答案可能有兩部分，一個，退後一步，我的意思是，這對公司來說是一項非常具有變革性的交易，我們在大約 2 週前結束時宣布了這一點，我們實際上用今天來談論戰略方面。和（聽不清）我們藉此機會回答您的問題的問題。

Look, I mean, we all know that raw materials critical materials are the linchpin and will be the rate limiting step to be frank for electrification. And we see that. Now some of the recycling space will say -- or recycling consult each and every day. Of course, recycling is a very important and critical aspect is (inaudible), and we're already today starting to see that as part of our business. But we have to get there. And primary supply is a very important part of that.

看，我的意思是，我們都知道原材料關鍵材料是關鍵，坦率地說，這將是電氣化的限速步驟。我們看到了這一點。現在一些回收空間會說——或者每天都在回收諮詢。當然，回收是一個非常重要和關鍵的方面（聽不清），我們今天已經開始將其視為我們業務的一部分。但我們必須到達那裡。初級供應是其中非常重要的一部分。

So this is what we've announced is a holistic global, very strategic agreement with Glencore. Glencore is the top producer of cobalt, the top producer -- they're a top 3 producer of Class 1 nickel, which is the nickel grade that goes into lithium-ion battery material. So look, as time will go on, there'll be more that will come through as we continue to develop with Glencore, obviously extremely excited for the business, highly validating and a great underpinning strategic partnership with the business.

這就是我們宣布的與嘉能可達成的一項全面的全球性戰略協議。 Glencore 是最大的鈷生產商，也是最大的生產商——他們是 1 類鎳的前 3 大生產商，這是用於鋰離子電池材料的鎳等級。所以看，隨著時間的推移，隨著我們繼續與嘉能可一起發展，將會有更多的事情發生，顯然對業務感到非常興奮，高度驗證並與業務建立了良好的戰略合作夥伴關係。

On your question, so just to describe maybe there were some questions about how this interplays between [TrakSYS] and Glencore. So to be clear, TrakSYS (inaudible) agreement and they continue to be great partners, exists for the Rochester hub, which is for the 100% offtake of lithium, nickel cobalt, magnesium ,graphite. And then in North America today for any black mass that we do so, that is through TrakSYS as well.

關於你的問題，所以只是為了描述一些關於 [TrakSYS] 和 Glencore 之間如何相互作用的問題。所以要明確的是，TrakSYS（聽不清）協議和他們繼續成為偉大的合作夥伴，存在於羅切斯特樞紐，該樞紐用於 100% 的鋰、鎳鈷、鎂、石墨的採購。然後在今天的北美，對於我們這樣做的任何黑人群體，也是通過 TrakSYS 進行的。

The Glencore agreements are actually outside of that jurisdiction on a longer-term basis. So that pertains to the offtake for any health products, that pertains to the black mass that we might sell. But there are a couple of other very exciting aspects to that, including very quickly byproducts. Our main byproducts have now been fully spoken for by offtake with Glencore, key rating supply, and one of the really exciting parts is working together on feed supply. So Spoke supply as well as black mass throughout. So again, that wasn't really your question, but I just want to take the opportunity to really emphasize how important and exciting this business is.

從長期來看，嘉能可協議實際上不在該管轄範圍內。所以這與任何健康產品的銷售有關，這與我們可能出售的黑色物質有關。但是還有其他一些非常令人興奮的方面，包括非常快速的副產品。我們的主要副產品現在已經被嘉能可（Glencore）、主要評級供應商充分說明，而真正令人興奮的部分之一是在飼料供應方面的合作。所以輻條供應以及黑色質量貫穿始終。再說一次，這不是你的問題，但我只想藉此機會真正強調這項業務的重要性和令人興奮的程度。

And we'll take our next question from Brian Dobson with Chardan Capital.

我們將向 Chardan Capital 的 Brian Dobson 提出下一個問題。

So let's talk about Europe a little bit, I guess. Given geopolitical issues there, have you found local governments are becoming more accommodative in terms of approvals in order to secure local battery recycling capabilities?

所以讓我們稍微談談歐洲吧，我猜。鑑於那裡的地緣政治問題，您是否發現地方政府在批准方面變得更加寬鬆，以確保當地電池回收能力？

Yes. Thanks, Brian. Thanks for joining. I'll turn over to Tim, he has some comments.

是的。謝謝，布賴恩。感謝您的加入。我會交給蒂姆，他有一些意見。

And so I guess there's 2 charter trends that we're seeing around the world and including Europe. One is of course, increased desire to regionalize material supply networks. And we've seen an increased focus on this, and that's part of our strategy for building out in Europe is to be able to support customers locally close to where the materials are generated, and we'll continue to update the market on that.

因此，我想我們在世界各地（包括歐洲）看到了兩種包機趨勢。其中之一當然是對材料供應網絡區域化的渴望增加。我們已經看到人們越來越關注這一點，這是我們在歐洲建設戰略的一部分，即能夠為靠近材料生產地的當地客戶提供支持，我們將繼續在這方面更新市場。

The other thing that's happening at the same time is increased prudence around environmental regulations and sustainability, which is actually working in Li-Cycle's favor. So it's one of the benefits, obviously, about processing technology is around minimal environmental footprint as it relates to waste water, air emissions, et cetera. And so what we're seeing is strong support from government bodies, who are looking to both regionalize supply chains as well as customers of interregional supply chains. That's also coincided with increased focus on how we're actually doing the work. And so we see both these things has been favorable to Li-Cycle.

同時發生的另一件事是在環境法規和可持續性方面更加謹慎，這實際上對 Li-Cycle 有利。因此，很明顯，加工技術的好處之一是環境足跡最小，因為它與廢水、空氣排放等有關。因此，我們看到的是政府機構的大力支持，他們希望將供應鏈區域化以及區域間供應鏈的客戶。這也與我們對實際工作方式的關注度增加相吻合。因此，我們看到這兩件事都對 Li-Cycle 有利。

And then my follow-up question has to do with expenses. Do you think you could give us a little bit of color on the expected cost cadence for the remainder of the year or certain expense line items you might want to call out as remaining elevated or having the potential to grow, given the inflationary environment?

然後我的後續問題與費用有關。鑑於通脹環境，您認為您是否可以就今年剩餘時間的預期成本節奏或您可能希望指出的仍處於高位或有增長潛力的某些費用項目給我們一些顏色？

Yes. Thanks, Brian. I think Debbie can answer that. Maybe just to clarify that you're really asking around how do you -- maybe expect so far to [rates pick up] the year.

是的。謝謝，布賴恩。我認為黛比可以回答這個問題。也許只是為了澄清你真的在問你怎麼樣 - 也許到目前為止[利率回升]今年。

Brian, it's Debbie here. So I think none of what you thought, I think we're beginning to hit [the] starting point. So I think [that] what you've brought to your benefit is our Q1 and our Q2. And I think there is a recently good runway forming there that's indicative about what our year will look like.

布萊恩，這裡是黛比。所以我認為沒有你想的那樣，我認為我們開始達到[the]起點。因此，我認為您為您帶來的好處是我們的第一季度和第二季度。而且我認為最近有一條很好的跑道正在形成，這表明我們的一年會是什麼樣子。

The one thing that I would say that I had in my remarks is just to take a [ton] of the fact that there is like $4.5 million of share-based comp, which is noncash in the quarter. And we would expect that to be similar when we (inaudible).

我在講話中要說的一件事就是要接受一個事實，即本季度有大約 450 萬美元的基於股票的補償，這是非現金的。當我們（聽不清）時，我們希望這會是相似的。

We will take our next question from Ben Kallo with Baird.

我們將與貝爾德一起回答 Ben Kallo 的下一個問題。

Maybe first, just going back to Europe. Could you talk to us about the Spokes there? Are they -- the newer version, is it similar to Arizona and Alabama?

也許首先，回到歐洲。你能和我們談談那裡的輻條嗎？它們是——較新的版本，與亞利桑那州和阿拉巴馬州相似嗎？

Yes. Tim, can answer that.

是的。蒂姆，可以回答這個問題。

Yes, no problem. So Ben -- so you're right. So the 2 Spokes that we've announced, one in Norway, one in Germany are both to the same design as the Arizona and Alabama Spoke. So what we are forecasting is that there will be up to [10,000 tonnes] per year of processing capacity and be able to process everything, up to including full electric vehicle battery parts. I should note that we are expecting to commission both these facilities by next tear.

是沒有問題。所以本 - 所以你是對的。因此，我們宣布的 2 個輻條，一個在挪威，一個在德國，都與亞利桑那州和阿拉巴馬州輻條的設計相同。因此，我們預測的是，每年將有高達 [10,000 噸] 的處理能力，並且能夠處理所有東西，包括全電動汽車電池部件。我應該指出，我們預計在下一次撕裂之前將這兩個設施投入使用。

And then could you just talk to us more about the other change that was made? Because that's good news for us, but to be able to process without the disassembly when that was developed and how much has been tested there?

然後你能和我們多談談所做的其他改變嗎？因為這對我們來說是個好消息，但是在開發時能夠在不拆卸的情況下進行處理，並且在那裡進行了多少測試？

Absolutely. And so this is -- and I have to calm myself a little bit just because it is a very exciting development for the company. I actually believe this is a -- for us, this client process that we've been able to successfully demonstrate now. So it's basically the same fundamental process. It's still the same submerged shredding process. But if you think about what we were trying to do previously is in a single stage, we're going for whatever form factor of material we were feeding.

絕對地。所以這是 - 我必須讓自己冷靜一點，因為這對公司來說是一個非常令人興奮的發展。我實際上相信這是一個——對我們來說，這個客戶流程，我們現在已經能夠成功地演示。所以這基本上是相同的基本過程。它仍然是相同的水下切碎過程。但是，如果您考慮一下我們之前嘗試做的事情是在一個階段中，那麼我們將採用我們提供的任何形式的材料。

So you can imagine and I'll try and talk to illustrate here a little bit to help people understand. But if you can imagine a module that is sort of 3 feet long, 2 feet wide and 6 to 10 inches tall, and now we're taking that one single piece of material, and we're breaking it down into the material that's well less than 1 inch in size, that's a big step change in terms of size reduction.

所以你可以想像，我會嘗試和談話在這裡稍微說明一下，以幫助人們理解。但是，如果你能想像一個長 3 英尺、寬 2 英尺、高 6 到 10 英寸的模塊，那麼現在我們將採用單一材料，並將其分解成合適的材料尺寸小於 1 英寸，這在尺寸減小方面是一個很大的變化。

That's not how we would do it in traditional mining applications, for example. So what we've done using that same submerged process is absolutely going to multiple in line size reduction steps. So we actually can go from these very large format battery packs. Now we can take everything out to we've said multiple funds, for electric vehicle battery packs. This process was designed around the concept that packs are essentially getting larger. They're getting more integrated into the vehicles in terms of we've seen things like structural parts being out, for example, which make it nearly impossible to disassemble.

例如，這不是我們在傳統採礦應用程序中的做法。因此，我們使用相同的浸沒式工藝所做的絕對是多個線尺寸減小步驟。所以我們實際上可以從這些非常大的電池組中走出來。現在我們可以拿出我們所說的多個資金，用於電動汽車電池組。這個過程是圍繞包裝本質上變得更大的概念設計的。例如，就我們看到的結構部件等問題而言，它們越來越集成到車輛中，這使得拆卸幾乎不可能。

So we can now take everything up to those 4 packs subprimes of vehicles, et cetera, and then process it through the same process but through multiple stages in mining series, in order to go from that large format, the same finished size that we're chasing, whilst we are liberating the black mass and doing all the other important things that we do as part of our core process.

所以我們現在可以把所有的東西都拿到這 4 包次貸車輛等等，然後通過相同的過程但是通過採礦系列的多個階段來處理它，以便從那個大的格式中得到與我們相同的成品尺寸。重新追逐，同時我們正在解放黑人群眾並做我們核心過程中所做的所有其他重要事情。

And then my last one, have you seen any change in your offtake agreements from cell producers or battery producers, in terms of either length of contract or the details of the contract? How much you have to pay for the offtake or anything like that?

然後我的最後一個，您是否看到電池生產商或電池生產商的承購協議在合同期限或合同細節方面有任何變化？你必須為承購或類似的東西支付多少？

I'll take that. Yes. So I think it's interesting. I can say I remind (inaudible) business with a very common that we would sign a couple of year contracts with the different master services agreement. And we still do that in that form. But I think what's interesting is the movement towards longer term. And our LG agreement, as an example, is a good case of that. So the intake agreement in that case is actually the same term as the offtake, which is 10 years. So that's rewinding a couple years ago, wouldn't have been the case. So that's very encouraging. And obviously, for us, really helps with planning (inaudible). Vis-a-vis pricing and what's happening in the market yes, very different segments and different things are priced in different ways.

我會接受的。是的。所以我覺得這很有趣。我可以說我提醒（聽不清）一個非常常見的業務，我們將與不同的主服務協議簽訂幾年的合同。我們仍然以這種形式這樣做。但我認為有趣的是朝著長期發展的趨勢。我們的 LG 協議就是一個很好的例子。因此，這種情況下的承購協議實際上與承購的期限相同，即 10 年。所以幾年前倒帶，不會是這樣。所以這非常令人鼓舞。顯然，對我們來說，確實有助於規劃（聽不清）。相對定價和市場上正在發生的事情是的，非常不同的細分市場和不同的事物以不同的方式定價。

So for example, manufacturing scrap has tied to be contained materials or other materials or other types of batteries may not may not, for it's [more of a service] it's more of a service. So much the same, I think, in terms of the way our business has continued or we continue to see multiple market segments and multiple pricing purchases.

因此，例如，製造廢料與包含的材料或其他材料或其他類型的電池可能沒有關聯，因為它[更多的是服務]它更多的是服務。我認為，就我們的業務持續方式而言，或者我們繼續看到多個細分市場和多個定價購買方式而言，情況大致相同。

We will take our next question from Jeff Osborne with Cowen & Co.

我們將向 Cowen & Co. 的 Jeff Osborne 提出我們的下一個問題。

A couple of questions on my side. I might have missed it, but did you give the average price of black mass in the quarter?

我這邊有幾個問題。我可能錯過了，但是您是否給出了該季度黑色質量的平均價格？

Jeff. Debbie, can you take that.

傑夫。黛比，你能接受嗎？

Not yet, Jeff, we actually don't disclose our (inaudible) sold in the quarter, but I think I can tell you that this -- our tonnes sold is greater than the tonnes produce, the gross tonnes produced. And we did actually some inventory as we would assume from Q2, we get actually one side and you said we had (inaudible) tonnes sold was greater than tonnes produced in the quarter. And I think what we can do is use that disclosure in Note 14 now. And if you're calculating per tonne numbers, I would actually use the revenue in the period number, so the number excluding (inaudible) market following adjustment and that was (inaudible).

還沒有，傑夫，我們實際上沒有透露我們在本季度的（聽不清）銷售，但我想我可以告訴你——我們銷售的噸數大於生產的噸數，即生產的總噸數。我們實際上做了一些庫存，正如我們從第二季度開始假設的那樣，我們實際上是一方面，你說我們（聽不清）售出的噸數大於本季度生產的噸數。我認為我們現在可以做的是使用註釋 14 中的披露。如果你計算每噸的數字，我實際上會使用期間數字中的收入，所以調整後的數字不包括（聽不清）市場，那是（聽不清）。

Got it. And when you answered the question on fair market value, your line -- the speaker phone was tough to hear, but given the fair market value adjustments or half year revenue, I just want to understand that sector better. So can you give us a sense of how many metric tons were subject to fair market value adjustments? And I think in your disclosure, you talked about just under 2,600 metric tons that are subject to future fair value pricing adjustments as of April 30. When would you expect those adjustments to flow through the P&L?

知道了。當您回答有關公平市場價值的問題時，您的台詞-揚聲器電話很難聽，但考慮到公平市場價值調整或半年收入，我只想更好地了解該行業。那麼你能告訴我們有多少公噸受到公平市場價值調整的影響嗎？我認為在您的披露中，您談到了截至 4 月 30 日未來公允價值定價調整的不到 2,600 公噸。您預計這些調整何時會通過損益表？

So Jeff when we (inaudible) because I don't have a separation for you in terms of how many tonnes are associated with fair market value. But what happens is when we book the revenue, there's a long lead time. So actually (inaudible) And so we are subject to repricing in that (inaudible) and that when (inaudible) can be anything from about 9 to 12 months.

傑夫，當我們（聽不清）時，因為我沒有為您區分多少噸與公平市場價值相關聯。但是發生的情況是，當我們預定收入時，交貨時間很長。所以實際上（聽不清）所以我們會在那個（聽不清）和什麼時候（聽不清）可能是大約 9 到 12 個月之間重新定價。

Got it. And then maybe the last one is just there was a lot of discussion of larger form factors, which is great. I wanted to understand, are you seeing a more pronounced mix shift in scrap relative to the expectations at the time of the SPAC merger in regards to scrap versus, say, recalls?

知道了。然後也許最後一個就是有很多關於更大尺寸的討論，這很好。我想了解，相對於 SPAC 合併時關於廢品與召回的預期，您是否看到廢品的混合變化更為明顯？

No, I would say that it's still roughly online, we were always sort of forecasting a reduction in total consumer electronic batteries as a proportion of our overall feed mix. And I'd say that's been consistent. We've seen -- we're continuing to see more scrap come on the market, and you can follow the I guess, the battery OEMs and what they're doing to give you an idea of how much scrap is coming to the market. We are seeing that to continue to accelerate, particularly in the early days of these new cell manufacturing plants coming online.

不，我會說它仍然大致在線，我們總是預測消費電子電池總量在我們整體飼料組合中的比例會減少。我會說這是一致的。我們已經看到——我們繼續看到更多的廢品進入市場，您可以關注我猜的電池原始設備製造商以及他們正在做的事情，讓您了解有多少廢品進入市場.我們看到這將繼續加速，特別是在這些新電池製造工廠上線的初期。

I'd say the one thing that we do forecast as much was just in relation to repo applications. I would also say that we've seen more energy storage system retooling in the last 6 months than what we would have originally forecast 12 months ago. This is all what we consider outsized relative to what we (inaudible) previously.

我想說的是，我們預測的一件事只是與回購申請有關。我還要說，我們在過去 6 個月中看到的儲能係統重組比我們 12 個月前最初預測的要多。這就是我們認為相對於我們之前（聽不清）而言過大的所有內容。

There appears to be no questions in the queue. I will turn the call back over to Ajay for his closing remarks.

隊列中似乎沒有任何問題。我會將電話轉回給 Ajay 以聽取他的閉幕詞。

Thank you. In closing, Li-Cycle continues to accelerate its position as a leading preferred recycling and resource recovery partner to global strategic partnerships in battery supply chain. We have sufficient liquidity for our capital and operating needs to fund the current pipeline of projects in development of (inaudible). And finally, our Spoke & Hub Technologies integrated network is uniquely positioned to capitalize on accelerating electrification trends that will deliver significant earnings and cash flow in the years to come.

謝謝你。最後，Li-Cycle 繼續鞏固其作為全球電池供應鏈戰略合作夥伴的首選回收和資源回收合作夥伴的領先地位。我們有足夠的流動性來滿足我們的資本和運營需求，為目前正在開發的項目提供資金（聽不清）。最後，我們的 Spoke & Hub Technologies 集成網絡具有獨特的優勢，可以利用加速的電氣化趨勢，在未來幾年帶來可觀的收益和現金流。

So thank you. We appreciate your time and interest in Li-Cycle, and we look forward to continuing to update you regarding our ongoing buildout and execution.

所以謝謝。感謝您對 Li-Cycle 的時間和興趣，我們期待繼續向您提供有關我們正在進行的擴建和執行的最新信息。

This does conclude today's program. Thank you for your participation. You may disconnect at any time and have a wonderful day.

今天的節目到此結束。感謝您的參與。您可以隨時斷開連接，度過美好的一天。