March 17 (Reuters) - London-listed Glencore ( GLCNF ) has made an offer to acquire

Canadian lithium battery recycling company Li-Cycle as part of a proposal to offset

operational and financial issues.

In a letter to a board chair, dated March 14, Glencore ( GLCNF ) said it would like to commence

discussions with the company and Li-Cycle's other stakeholders regarding the potential

transaction as soon as possible.

Li-Cycle's debt held by Glencore ( GLCNF ) is convertible to roughly 84 million shares in the

recycling company.

The Toronto-based company also amended its limited duration shareholder rights plan last

year to exempt Glencore Canada, allowing it to acquire more than 20% of the company.

Li-Cycle, which has a market capitalization of $10.45 million, according to data compiled by

LSEG, said its board has formed a special committee to evaluate Glencore's ( GLCNF ) letter and the

proposed acquisition.

"There can be no assurance that any particular transaction will be proposed, recommended or

consummated," said Li-Cycle spokesperson Louie Diaz, who declined further comment.

The company has developed a network of facilities in Arizona, Alabama and Ontario, producing

black mass, which is essentially shredded battery parts. A planned Rochester, New York, facility

breaks down that black mass into lithium and other metals - the only facility of its kind in

North America.

In November last year, the U.S. Department of Energy finalized a $475 million loan for

Li-Cycle, a financial lifeline for the company that kept running into cost overruns and

technical issues.

Glencore ( GLCNF ) did not immediately respond to a Reuters request for comment.