Lithion Recycling Announces the Closing of a First Significant Tranche of up to $125 Million Series A Financing Led by IMM Investment Global and Supported by Fondaction

MONTREAL, QC, January 24, 2022 Proceeds from the financing will support the construction of Lithion’s first lithium-ion battery recycling plant and a state-of-the-art Technology Development Center in Quebec

Lithion Recycling Inc. (“Lithion” or the “Company”) is proud to announce it has reached financial close of a first tranche of Series A equity with a strategic group of investors led by IMM Investment Global Limited (“IMM Global”) and supported by Fondaction and its managed fund, the LCC Fund. The size of the first round is expected to reach up to C$125 million. IMM Global will join the Company’s Board of directors as a result of their significant investment.

With this new capital, Lithion moves forward with three pivotal parts of its industrialization plan which are the construction and commissioning of its first commercial mechanical separation plant (“Spoke”) in Quebec; the construction and opening of a state-of-the-art Technology Development Center (“TDC”) to continuously develop Lithion’s technology for future battery chemistries and battery materials specifications; and the completion of detailed engineering studies in advance of the near-term start of construction of Lithion’s Quebec-based hydrometallurgy plant (“Hub”).

With today’s announcement, Lithion enters the commercial phase of its development and will continue the Company’s journey to close the loop on battery materials with the full support of its investors and partners. The 7,500 metric tons per year capacity Spoke and the TDC will create close to 100 jobs in Quebec and will support the global deployment of Lithion’s technology      through licensing agreements.

Ancoris Capital Partners acted as financial advisor and Norton Rose acted as legal advisor to Lithion in the transaction.

“This is a crucial moment in Lithion’s history. Our eco-friendly technology can be implemented all over the world to address the global challenge of energy transition. We are proud to partner with IMM Global as well as with Fondaction who both fully support the construction of this plant and our Technology Development Center as well as further development of Lithion’s technology and expertise. Lithion is deeply rooted in Quebec and will play a significant and crucial role in the future of the province’s battery and EV sectors. Furthermore, we are engaged in ongoing discussions with additional investment partners who wish to be part of this financing round.”

– Benoit Couture, President and CEO of Lithion Recycling Inc.

“IMM Investment Global is thrilled to take the important first step into the EV battery value chain through its strategic investment into Lithion. We have a deep conviction in Lithion’s technology and in its potential to penetrate the global recycling market where Korean battery players have a strong presence. Having successfully launched IMM Global Battery Fund I and IMM Clean Energy Transition Fund I in 2021, IMM Global will join forces with Lithion to materialize this potential in the global battery value chain.”

– Youngjoon Lee, Managing Partner & CEO of IMM Investment Global Limited

“Lithion’s positive impact potential is colossal, as its technology makes it possible to recycle more than 95% of the strategic metals contained in the batteries of electric vehicles, thereby preventing the negative effects of their extraction. Fondaction enthusiastically supports the deployment of this Quebec innovation, which gives the electrification of the transportation industry a circular economy approach.”

– Stéphane Morency, Vice President & Chief Investment Officer at Fondaction

About Lithion Recycling Inc.

Lithion has developed an efficient and cost-effective process to recover strategic materials from end-of-life and product waste of lithium-ion batteries. Lithion’s process allows up to 95% of battery components to be recovered and treated so that they can be reused by battery manufacturers, enabling to close the lifecycle in batteries. This technology accelerates the transition to green energy and helps meet decarbonization targets by reducing pressure on natural resource extraction. This year, Lithion launches its first commercial recycling operations, drawing on data from a highly successful Quebec industrial-scale demonstration plant commissioned in January 2020.  Its goal is worldwide deployment, through licensing agreements, with a target of 25 recycling plants on a world scale by 2035. For more information, please visit: https://www.lithionrecycling.com/

About IMM Investment Global Limited

IMM Investment Global (“IMM Global”) is a pure-play overseas investment arm of IMM Investment Corp. (“IMM”), which is the leading alternative asset manager in Korea with U$5.0bn assets under management. Established today as the most well-recognized and trusted GP brand in Korea, IMM has been strongly pursuing geographical expansion globally. Formed in 2019, IMM Global is rapidly implementing its global rollout strategy across North America, Europe and Middle East focusing on high growth opportunities in diverse sectors. IMM Global aims to serve as the driving force in further penetrating Korean presence in areas like EV battery value chain into the global arena.

About Fondaction

A forerunner in sustainable finance for the past 25 years, Fondaction brings together individuals that are mobilizing for the positive transformation of society, taking action to make Québec’s economy more equitable, inclusive, green and successful. As a labour-sponsored fund, Fondaction represents tens of thousands of savers and hundreds of companies committed to helping Québec progress. It manages net assets of more than $3.34 billion invested in hundreds of businesses and in financial markets, prioritizing investments that generate positive economic, social and environmental impacts in addition to a financial return. Fondaction helps create and maintain quality jobs, reduce inequalities and fight climate change. For more information, go to fondaction.com or our LinkedIn page.

About LCC Fund

LCC Fund supports the growth of businesses whose activity, such as energy efficiency, clean energy production and the reclamation of residual materials, results in a significant reduction in greenhouse gas emissions. In this way, Fonds LCC plays a key role in accelerating the achievement of reduction targets.

About Ancoris Capital Partners

Ancoris is a specialty investment bank purpose-built for the private capital markets. Ancoris customizes capital solutions to maximize economics and drive the most beneficial terms for its clients. The Ancoris team is differentiated by its approach and execution, which leverages Ancoris’ extensive experience structuring complex transactions and aligning interests for long-term success. For more information, please visit: www.ancorispartners.com

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Source: Lithion Recycling Inc.

For further information:

Dominik Boudreault Lapierre, dlapierre@casacom.ca, 514-386-7557