Why Li-Cycle Stock Is Plummeting This Week
Li-Cycle (NYSE: LICY) stock is getting hammered this week. Heading into this Friday's market open, the lithium battery recycling specialist's share price was down 41.9% from last week's market close, according to data from S&P Global Market Intelligence.
Li-Cycle published a press release on Oct. 23 announcing that it had paused construction at its factory in Rochester, New York. The company said that construction of the facility will be paused until a comprehensive strategic review is completed.
Li-Cycle has seen construction costs on its Rochester Hub facility come in significantly above expectations. In response, the company's board of directors decided to put further building on hold. Li-Cycle had received approval for a $375 million loan from the U.S. Department of Energy to fund the completion of the facility, and investors are worried that the funding availability could evaporate. At the very least, it looks as if Li-Cycle will need to secure additional funding if it's going to move forward with the construction of its Rochester factory.
Source Fool.com
