Electric automakers, mining companies and chemical supplier are racing to control more supplies of materials that are key to transitioning the world to cleaner energy sources. Car manufacturers and industry analysts expect recycled batteries to play a vital role in addressing supply constraints over the long term. Recycling may also help tame soaring commodity prices that threaten to deliver the first rise in battery costs since at least 2010.

An estimated 62,000 tons of used EV and stationary storage packs reached their end of life last year, and that will rise to 4 million tons by 2035, according to BloombergNEF, Bloomberg’s energy and data analysis unit. Worldwide, consumers and companies are expected to buy almost 26 million EVs annually by 2030, and junkyards will take in nearly 1.7 million tons of scrapped batteries, according to BNEF estimates.

Glencore will also make a $200-million investment in Li-Cycle by purchasing a five-year convertible note, according to the statement. Li-Cycle agreed to nominate Kunal Sinha, Glencore’s head of recycling, to its board of directors.

Shares of Li-Cycle surged 8.8% to $7.82 at 10:46 a.m.