Loop Industries Cuts India Facility Cost to $165-170M, Advances Europe JV
LOOP•Loop Industries secured a memorandum of understanding with Gujarat government to streamline its India JV, reducing the initial facility’s estimated capital cost to $165–170 million from $190 million with operations set for 2028. The European JV selected BASF’s Schwarzheide site, moving into engineering phase to generate Loop engineering fees.
1. India JV Secures Gujarat Government Support
Loop’s India joint venture signed a memorandum of understanding with the government of Gujarat to streamline permitting, infrastructure coordination and administrative processes. The MOU underpins a phased expansion strategy and supports an initial commercial facility now estimated at $165–170 million, down from $190 million, with operations slated for calendar 2028.
2. Europe JV Enters Engineering and Permitting Phase
Loop’s European licensing partner, Reed Société Générale Group, selected BASF Industriepark Lausitz in Schwarzheide, Germany, as the site for its first recycling facility. The project moves into engineering and permitting, where Loop will provide pre-feasibility studies and earn engineering fees as the next milestone.
3. Cost Savings and Non-Dilutive Funding
To support scale-up, Loop secured up to C$2.92 million in non-repayable NRC IRAP funding and initiated expense reduction initiatives, including vendor contract reviews, service audits and headcount realignment. These measures are designed to lower corporate overhead and focus resources on commercial execution.
4. Q4 and Fiscal 2026 Financial Highlights
Loop reported fourth-quarter revenues of $176,000 and a net loss of $2.7 million, compared with prior-year license income of $10.4 million. Ongoing cost-control efforts reduced R&D and G&A expenses, reflecting the shift from early-stage development to project deployment.
