Exploring Li-Cycle Holdings Corp. (LICY) Investor Profile: Who’s Buying and Why?

You're looking at Li-Cycle Holdings Corp. (LICY) and asking the same question every seasoned analyst is: with the stock price trading near its 52-week low and the company reporting a fiscal year 2024 net loss of approximately $137.7 million, who is defintely still buying, and why is this lithium-ion battery recycler a magnet for institutional capital? We've seen the retail crowd hold a dominant position, owning roughly 53% of the shares, but the real story is the conviction of the big money, like Armistice Capital LLC's significant stake reported in March 2025, or BlackRock, Inc.'s continued position, which is betting on the long game of critical mineral recovery. How do you reconcile a cash position of just $22.6 million with the massive strategic potential of a $475 million U.S. Department of Energy loan and the explicit interest from a global giant like Glencore in a potential transaction? That tension between near-term financial risk and long-term supply chain dominance is exactly what we need to unpack to understand the true investor profile here.

Who Invests in Li-Cycle Holdings Corp. (LICY) and Why?

The investor profile for Li-Cycle Holdings Corp. (LICY) has undergone a dramatic, fundamental shift in 2025. The direct takeaway is that the company has moved from being a publicly traded, retail-favorite growth stock to a strategic asset majority-controlled by a single, massive global commodities firm, Glencore plc, which now views it as a critical piece of its future supply chain.

This pivot is the single most important factor for anyone looking at LICY's stock today. As of August 7, 2025, Li-Cycle Holdings Corp. operates as a subsidiary of Glencore Canada Corporation, which re-frames the entire investment thesis.

Key Investor Types: The Glencore Pivot

Before the major strategic transaction, Li-Cycle Holdings Corp. was unusually popular with individual investors (often called the general public or retail investors). As of June 2024, individual investors held the largest block, owning around 53% of the shares. This is a massive concentration for a pre-revenue growth company, showing strong public belief in the lithium-ion battery recycling narrative.

But that all changed in March 2025, when Glencore plc executed a massive strategic acquisition. Glencore acquired 84,396,989 shares, increasing its total holdings to 84,404,412 shares. This move gave Glencore a position representing 66.70% of its firm's holdings in the traded stock, effectively giving them strategic control and transforming the ownership landscape.

The remaining institutional ownership, outside of Glencore, is a mixed bag of mutual funds and specialized climate-focused funds. For instance, before the Glencore news, institutional investors like GMO Climate Change Fund Class III (GCCHX) and PRIMECAP Odyssey Aggressive Growth Fund (POAGX) were among the largest holders, indicating a focus on long-term, high-growth, and environmental, social, and governance (ESG) mandates.

• Glencore plc: Strategic majority control.
• Retail Investors: Historically large block, focused on EV supply chain growth.
• Other Institutions: Smaller, specialized funds with ESG or aggressive growth mandates.

Investment Motivations: Strategic Control and Long-Term Growth

The motivations for buying Li-Cycle Holdings Corp. stock are split between a strategic play and a high-risk growth bet.

For Glencore, the motivation is clear: strategic supply chain control. Li-Cycle Holdings Corp. is a pioneer in lithium-ion battery resource recovery, using its proprietary Spoke & Hub Technologies to create a domestic closed-loop battery supply chain. Glencore, a global commodities giant, is bolstering its portfolio in the 'burgeoning field of lithium-ion battery recycling' to secure future access to critical materials like lithium, nickel, and cobalt. It's a long-term, vertical integration move, not a quick trade.

For other investors, especially the remaining retail base, the motivation is pure growth prospects. The lithium-ion battery recycling market is dynamic and has huge potential, driven by the increasing demand for electric vehicles (EVs). These investors are betting on the long-term success of the Rochester Hub project, which is expected to produce up to approximately 8,250 tonnes of battery-grade lithium carbonate annually. They are buying the future, not the present financials.

Here's the quick math on the risk: The company reported a total revenue of only $28.0 million for the fiscal year ended December 31, 2024, but a net loss of $137.7 million. Plus, as of December 31, 2024, cash and cash equivalents were only $22.6 million, and the company needs additional financing to continue as a going concern. The stock does not pay a dividend, so the only return is capital appreciation.

You can see the full picture of the company's long-term vision here: Mission Statement, Vision, & Core Values of Li-Cycle Holdings Corp. (LICY).

Investment Strategies: High-Risk Growth and Strategic Control

We see two distinct strategies at play here, which is common in high-growth, pre-profit companies facing a strategic acquisition.

The Glencore strategy is a long-term holding focused on securing a strategic asset. Their investment is about future-proofing their commodity business, not quarterly trading. They are now the ultimate long-term holder, providing a measure of stability but also limiting the upside for minority shareholders, as the company is now essentially a private subsidiary.

The strategy for the remaining non-Glencore investors is a speculative, high-risk growth bet. The stock has been highly volatile, and its valuation has been flagged as a 'Possible Value Trap'. This is not a value investing play, as traditional metrics like the Price-to-Earnings (P/E) ratio are not applicable due to the negative earnings.

To be fair, the potential for a massive payoff if the Rochester Hub becomes fully operational is the lure. But the risk is defintely high, considering the company's need for further financing and the potential for limited value assigned to existing equity during any strategic restructuring.

The key action for you is to understand that Glencore's control changes the game. Your investment is now tied to their long-term strategic success, which is a very different proposition than betting on an independent, publicly-traded growth company.

Institutional Ownership and Major Shareholders of Li-Cycle Holdings Corp. (LICY)

The investor profile for Li-Cycle Holdings Corp. (LICY) in the 2025 fiscal year is defintely a story of a major strategic shift, moving away from a diverse institutional base toward a single, dominant strategic partner. The direct takeaway is that while many traditional funds exited their positions, Glencore plc's massive stake increase and subsequent acquisition effectively redefined the company's ownership structure and future.

For most of 2025, the institutional landscape was dominated by the strategic positioning of Glencore, a global commodity giant. Their influence became so profound that it culminated in Glencore Canada Corporation completing the acquisition of an unknown majority stake and key assets in August 2025 for a reported CAD 40 million. This move fundamentally changed Li-Cycle from a publicly-traded growth stock to a company largely controlled by a strategic entity, especially after it moved to the over-the-counter (OTC) market as LICYQ in February 2025.

Top Institutional Investors: The Glencore Dominance

When we look at the institutional holdings leading into and throughout 2025, the picture is clear: Glencore plc is the primary shareholder and strategic investor. Their position is so large it overshadows all other institutional holdings. Here's the quick math: a December 2024 filing showed Glencore's stake had ballooned to over 61.8 million shares, representing nearly 70% of the company's ownership.

This kind of concentration means that Glencore, not a typical mutual fund or pension plan, holds the reins. Other traditional institutional players, like the GMO Climate Change Fund Class III (GCCHX) and PRIMECAP Odyssey Aggressive Growth Fund (POAGX), held smaller, more traditional stakes, but their influence paled in comparison to the strategic partner.

Changes in Ownership: The Great Institutional Exit

The trend in 2025 was a dramatic polarization of ownership. Glencore's stake increased by 183.05% in late 2024, setting the stage for their majority control in 2025. But for nearly every other major institutional investor, the trend was a sharp decrease, or a complete exit.

As Li-Cycle faced operational challenges, a delisting from the NYSE, and restructuring efforts, many institutional funds decided to cut their losses. You saw a lot of 'closed positions' in 13F filings throughout the year. For example, institutions like the New York State Common Retirement Fund and Citadel Advisors Llc closed out their positions in 2025, signaling a loss of confidence in the company's near-term public market viability.

• Glencore's stake rose sharply, securing strategic control.
• Many long-term institutional investors sold out, reducing their exposure to the restructuring risk.
• The mass institutional exit drove the public float down significantly.

Impact of Institutional Investors: Strategy Over Stock Price

The role of institutional investors in Li-Cycle Holdings Corp. (LICY) throughout 2025 was less about stock price support and more about corporate survival and strategic direction. When a single institutional investor, like Glencore, holds nearly 70% of the company, they are no longer just an investor; they are the primary decision-maker.

Glencore's deep pockets and commodity expertise were the lifeline. Their investment and subsequent acquisition provided the capital and operational stability needed to continue the Rochester Hub project and other core recycling operations, especially after Li-Cycle obtained creditor protection in May 2025. This move shifted the company's focus from rapid, capital-intensive expansion (which led to financial strain) to a more integrated, strategically-backed operation under a major global player. You can read more about the financial context in Breaking Down Li-Cycle Holdings Corp. (LICY) Financial Health: Key Insights for Investors. The impact is clear: the company's strategy became Glencore's strategy.

What this estimate hides is the significant dilution that occurred for pre-2025 shareholders as the company underwent its various financing and restructuring events. The remaining institutional investors on the OTC market have a negligible impact on the overall strategy, which is now dictated by the majority owner. The individual investor group, which held 53% of shares in mid-2024, also saw their collective influence significantly diminished by Glencore's dominant stake.

Next Step: Finance: Model the long-term cash flow implications of the Glencore asset sale and strategic partnership by the end of the month.

Key Investors and Their Impact on Li-Cycle Holdings Corp. (LICY)

The investor profile of Li-Cycle Holdings Corp. (LICY) in the 2025 fiscal year is defintely not a story of diversified institutional funds, but a tight, high-stakes narrative dominated by one strategic, powerful entity: Glencore plc. This shift has fundamentally changed the company's structure, moving it from a public growth story to a major asset acquisition by its largest secured creditor.

You need to understand that Glencore, the Swiss commodities giant, is the central figure here. Their investment is not just capital; it's a strategic move to secure a position in the burgeoning lithium-ion battery recycling supply chain. By the end of this period, Glencore's influence went from a major shareholder to the new owner of the company's core assets, a clear case of creditor-led restructuring.

Glencore: The Anchor Investor and Acquirer

Glencore's involvement in Li-Cycle Holdings Corp. has been a multi-year, multi-faceted partnership that culminated in a major restructuring in 2025. This wasn't a passive investment; it was a deep, strategic commitment that positioned Glencore as the company's largest secured creditor, providing over $275 million in financing since 2022.

In the first half of 2025, Glencore significantly increased its equity stake. As of March 21, 2025, Glencore's total holdings reached approximately 84,404,412 shares, representing an estimated 66.70% of the firm's holdings in the traded stock. This gave them a controlling equity position, even before the final restructuring. For context, the company's market capitalization was only about $12.949 million as of March 21, 2025, highlighting the stock's significant decline.

Here's the quick math on their influence: when a single investor holds over two-thirds of the stock, they control the shareholder vote, plus they were the largest creditor. That's a powerful combination.

• March 2025: Glencore was in talks to acquire the company to address its capital structure.
• August 2025: Li-Cycle completed the sale of key assets to Glencore Canada Corporation.
• Transaction Mechanism: Glencore acquired the assets via a 'credit bid,' essentially using the debt owed to them as currency instead of new cash.

The Impact of Strategic and Government Backing

Beyond Glencore, Li-Cycle Holdings Corp. had several other key strategic and governmental backers who played a critical role in its development and financial health, particularly concerning the flagship Rochester Hub project.

The company secured a substantial $475 million loan agreement from the U.S. Department of Energy (DOE) to support the construction of the Rochester Hub in New York. This government backing was a major vote of confidence in the technology and its role in the domestic battery supply chain. Other notable investors and partners include General Motors and LG Energy Solution, Inc., who have commercial partnerships, and Koch Investments Group, which previously made a $100 million investment.

What this estimate hides is that while these partnerships and the DOE loan were crucial for project financing, the ultimate financial distress and subsequent asset sale to Glencore demonstrate that the secured creditor's position and the company's liquidity issues ultimately dictated the outcome. The volatility was extreme: the stock price fell from $2.31 per share in November 2024 to $0.84 by February 2025.

For a deeper dive into the company's operational history and structure, you can check out Li-Cycle Holdings Corp. (LICY): History, Ownership, Mission, How It Works & Makes Money.

Recent Investor Moves and Ownership Structure

The most significant recent move was the August 2025 asset sale to Glencore. This transaction included the transfer of the company's pre-processing facilities (Spokes) in Germany, Arizona, Alabama, New York, and Ontario, as well as the intellectual property and the Rochester Hub project. This effectively concluded the company's court-approved sale and restructuring process.

Before this, the company attempted to raise capital through a public offering in January 2025, which aimed for gross proceeds of approximately $15 million. This was a small, necessary injection for working capital, but clearly not enough to stave off the larger financial pressures. The institutional ownership landscape, outside of Glencore, showed significant selling activity throughout 2025, with many funds closing or drastically reducing their positions, reflecting the high-risk environment.

The takeaway for you is clear: Li-Cycle Holdings Corp.'s investor profile evolved from a high-growth SPAC target to a company whose destiny was ultimately determined by its largest secured creditor, Glencore, who used their financial leverage to acquire the core assets and technology. It's a textbook example of how debt can translate into control when a company faces liquidity issues.

Market Impact and Investor Sentiment

You're looking at Li-Cycle Holdings Corp. (LICY) and seeing a complex picture: a company with a strong long-term vision in battery recycling but facing serious near-term financial hurdles. The direct takeaway is that while retail investor sentiment remains surprisingly positive, the stock's trajectory is now overwhelmingly dictated by the actions of its largest strategic investor, Glencore, and the company's ongoing restructuring process initiated in May 2025.

The investor base for Li-Cycle Holdings Corp. is a fascinating mix, but the power dynamic has shifted dramatically in 2025. Individual investors, often referred to as the general public, held a significant stake-around 53% of the company's shares as of mid-2024-a level that gives them a collective voice, but not the deep pockets needed for a turnaround. Institutional ownership, which includes funds like GCCHX - GMO Climate Change Fund Class III and POAGX - PRIMECAP Odyssey Aggressive Growth Fund, collectively held only 277,042 shares in early 2025, a relatively small number given the company's challenges.

Here's the quick math on sentiment: despite the financial distress, the social media sentiment score for Li-Cycle Holdings Corp. was reported as a very positive 100 out of 100 in July 2025, which honestly shows a strong belief in the long-term potential of the lithium-ion battery recycling model. Plus, the short interest as of February 15, 2025, was only 5.86% of the public float, which is low and suggests that most sophisticated investors weren't betting heavily against the stock at that time. That's a strong signal of retail conviction, even when the fundamentals are shaky.

The Glencore Effect and Ownership Shifts

The most critical investor move in 2025 was Glencore's continued commitment, which is the primary reason the company has stayed afloat. Glencore plc, a major commodity trader, executed a significant transaction on March 14, 2025, acquiring 84,396,989 shares at a trade price of just $0.19 per share. This move was a massive capital injection and a clear endorsement of the underlying technology, even as the stock price was struggling. Glencore Canada Corporation further completed an acquisition of an unknown majority stake for CAD 40 million in August 2025.

This strategic investment is a double-edged sword. On one hand, it validates the company's technology and provides essential liquidity. On the other, it signals a shift in control, with Glencore now holding immense influence over the company's future direction, especially after the company filed for restructuring under the Companies' Creditors Arrangement Act (CCAA) and Chapter 15 in May 2025. The market reaction to these events was a massive drop that led to the stock's delisting from the NYSE due to its average closing price falling below $1.00, forcing it to trade on the OTCQX® Best Market under 'LICYF' starting February 27, 2025.

• Glencore's Stake: A strategic, deep-discount investment in March 2025.
• Delisting: NYSE delisting in February 2025 due to low price, a clear negative market reaction.
• Restructuring: May 2025 CCAA and Chapter 15 filings confirmed financial distress.

Analyst Consensus and Price Targets

When you look at the professional analyst community, the perspective is one of cautious realism, which translates to a 'Hold' rating. As of November 17, 2025, the consensus rating from analysts is a Hold. This isn't a ringing endorsement, but it's defintely not a 'Sell' either, which suggests analysts see a viable business model that is currently hampered by capital and operational issues.

The average analyst price target for Li-Cycle Holdings Corp. is set at $2.25. This target is significantly higher than the stock's price of $0.84 as of May 23, 2025, which tells you that the Street believes there is substantial upside once the company resolves its financing and construction issues, particularly with the Rochester Hub. What this estimate hides, however, is the execution risk and the potential for further shareholder dilution as part of the restructuring process.

To be fair, the analyst community is small, with the company being covered by only about 7 analysts, but their collective view maps the near-term risk to the long-term opportunity. The core investment thesis remains the same: the massive, growing need for a domestic, sustainable lithium-ion battery recycling supply chain. The question is simply who will own the equity when the business model finally scales.

For a deeper dive into the company's financial stability, you should read Breaking Down Li-Cycle Holdings Corp. (LICY) Financial Health: Key Insights for Investors.

Your action now should be to monitor the restructuring process, specifically looking for details on the final equity structure and Glencore's ultimate ownership percentage, as that will be the key driver of future returns.