Metals recycling plant. Stock image. US battery recycler Aqua Metals (NASDAQ: AQMS), announced Wednesday it has entered into a term sheet to acquire energy storage systems provider Lion Energy LLC. On closing of the transaction, Aqua Metals said it plans to leverage Lion Energy’s brand, intellectual property, capital, technical talent and manufacturing capabilities to transform the company into a domestic player capable of managing the entire battery lifecycle, from manufacturing and deployment to intellige ...

Combined Entity Would Integrate Energy Storage Products, Proprietary Energy Management Software, Recycling, and Battery Materials into a Single Platform Lion Energy is a Revenue-Generating Business, Enhanced by Proprietary Software and Positioned to Participate in Expanding Energy & Virtual Power Plant Markets RENO, Nev. and AMERICAN FORK, Utah, Feb. 11, 2026 (GLOBE NEWSWIRE) -- Aqua Metals, Inc. (NASDAQ: AQMS), a pioneer in battery metals recycling and refining, today announced that it has entered into a t ...

Core Viewpoint - Aqua Metals and American Battery Factory announced a strategic collaboration to enhance the domestic battery materials supply chain through recycling and circular manufacturing [1][2]. Collaboration Details - The companies plan to evaluate co-locating a lithium-ion battery recycling facility next to ABF's battery cell manufacturing operations in Tucson, Arizona [2]. - This collaboration aims to recycle lithium-ion battery manufacturing scrap from ABF and return battery-grade lithium carbonate for reuse in U.S. battery production [2][7]. Industry Challenges - The partnership addresses the challenge of economically processing battery materials domestically instead of exporting scrap to overseas markets for processing [3]. - Aqua Metals previously signed a letter of intent with Westwin Elements to supply up to 1,000 metric tons of recycled nickel carbonate annually starting in 2027, valued at approximately $12 million based on current nickel prices [3][4]. Integration Benefits - By integrating recycling with battery manufacturing, the collaboration seeks to improve cost competitiveness, reduce logistics complexity, and enhance domestic supply chain resilience [5]. - Aqua Metals utilizes its proprietary AquaRefining technology, which is designed to operate efficiently within the U.S. regulatory environment while creating jobs and producing battery-grade materials [6]. Strategic Goals - The collaboration reflects the belief that domestic battery recycling must be economically viable, supporting U.S. manufacturing jobs and providing an alternative to exporting battery scrap [7]. - The MOU outlines plans for a commercial-scale recycling facility capable of processing up to 10,000 metric tons of lithium-ion battery materials annually, targeting 2028 for the start of operations [8].

Core Viewpoint - The strategic collaboration between Aqua Metals and American Battery Factory aims to create a cost-competitive, domestic battery materials supply chain through recycling and circular manufacturing, addressing the challenges of processing battery materials in the U.S. rather than relying on overseas markets [1][3]. Group 1: Collaboration Details - Aqua Metals and American Battery Factory have signed a non-binding Memorandum of Understanding (MOU) to evaluate the co-location of a lithium-ion battery recycling facility next to ABF's planned manufacturing operations in Tucson, Arizona [2]. - The collaboration will allow Aqua Metals to recycle lithium-ion battery manufacturing scrap from ABF and return battery-grade lithium carbonate for reuse in U.S.-based battery production [2][5]. Group 2: Industry Challenges and Solutions - The partnership aims to tackle the economic challenge of processing battery materials domestically, reducing the need to export manufacturing scrap to overseas markets for processing [3]. - By integrating recycling with battery manufacturing, the companies seek to enhance cost competitiveness, simplify logistics, and bolster domestic supply chain resilience [3][6]. Group 3: Technology and Operations - Aqua Metals utilizes its proprietary AquaRefining™ technology, which replaces traditional high-temperature furnaces and chemical-intensive processes with an electricity-powered, closed-loop system, promoting efficiency and safety in manufacturing [4][10]. - The proposed recycling facility is expected to process up to 10,000 metric tons of lithium-ion battery materials annually, improving logistics efficiency and reducing transportation costs [6]. Group 4: Economic Incentives and Future Plans - The companies will explore how domestic manufacturing incentives, such as the 45X Advanced Manufacturing Production Tax Credit, could enhance the economic viability of U.S.-based battery materials production [7]. - Any definitive agreements will depend on financing, permitting, and regulatory approvals, with a target to commence commercial operations in 2028 [7]. Group 5: Company Backgrounds - Aqua Metals is focused on revolutionizing metals recycling with its AquaRefining™ technology, aiming to provide high-purity, low-carbon battery materials to meet the demand for sustainable energy storage [10]. - American Battery Factory is dedicated to establishing a domestic supply of lithium iron phosphate (LFP) battery cells, contributing to energy security and job creation in the U.S. [11].

Core Insights - Aqua Metals, Inc. is participating in the NAATBatt 2026 Annual Meeting to engage with industry leaders and discuss advancements in battery recycling and supply chains [1][2][5] Company Activities - Aqua Metals will have representatives attending technical and policy sessions, and speaking on topics related to battery recycling and critical minerals supply [3] - The company plans to share updates on operational milestones and strategic partnerships during the conference [4] Industry Context - The NAATBatt Annual Meeting serves as a platform for collaboration among manufacturers, suppliers, recyclers, and policymakers in the battery and energy storage sectors [2] - Discussions will focus on market trends, technology development, and the future of advanced battery supply chains [2]

Core Viewpoint - Aqua Metals, Inc. has entered into a multi-year Material Supply Agreement with 6K Energy, marking a significant step in the commercialization of its AquaRefining™ technology and supporting the domestic battery materials strategy [1][4]. Group 1: Agreement Details - The agreement establishes a framework for the supply of battery-grade nickel metal and lithium carbonate produced through Aqua Metals' AquaRefining™ process, with an initial term of three years [2]. - 6K Energy will have the option to purchase these materials at prices based on current London Metal Exchange trading prices, potentially representing tens of millions of dollars in annual value [2]. - The agreement aims to align product specifications, qualification pathways, and pricing mechanisms to support the use of recycled materials in domestic cathode manufacturing [2][5]. Group 2: Environmental and Economic Benefits - AquaRefining™ technology offers a 98% reduction in greenhouse gas emissions compared to traditional methods, along with approximately $1,100 per metric ton in cost savings [3]. - The process operates without harmful chemicals and regenerates sulfuric acid for reuse, contributing to a sustainable, closed-loop system [3]. Group 3: Strategic Importance - The agreement is seen as a transition from technology validation to customer-aligned commercialization, aligning Aqua Metals' products with downstream manufacturing requirements [4]. - It reflects a shared focus on strengthening U.S. battery supply chains and reducing reliance on overseas processing, with materials expected to meet Foreign Entity of Concern compliance [5][6]. - The MSA allows for future collaboration opportunities, including evaluating tolling arrangements for lithium-ion battery black mass, supporting a feedstock-agnostic refining platform [6]. Group 4: Company Overview - Aqua Metals is focused on revolutionizing metals recycling with its AquaRefining™ technology, aiming to provide high-purity, low-carbon battery materials to meet the demand for sustainable energy storage [8].

Financial Data and Key Metrics Changes - The company ended Q3 2025 with $2.9 million in cash and cash equivalents, an increase from $1.9 million at the end of Q2 2025 [11] - Total operating costs were approximately $2.7 million for the quarter, down from $3 million in the prior year period, reflecting continued cost discipline [12] - The net loss for the quarter was $2.8 million, or negative $1.52 per share, compared to a net loss of $4.7 million, or negative $6.87 per share in Q3 2024 [12] - Year-to-date net loss improved to $12.3 million, or negative $7.41 per share, from $19.2 million, or negative $27.63 per share in the same period last year, a reduction of more than one-third [12] Business Line Data and Key Metrics Changes - The company successfully processed one metric ton of lithium iron phosphate (LFP) cathode scrap at pilot scale, producing battery-grade lithium carbonate validated by OEM and third-party testing [6] - The company has established MOU agreements with Mobi Robotics and Impossible Metals, extending the AquaRefining platform into deep-sea mineral feedstocks rich in nickel, cobalt, manganese, and rare earth elements [7] Market Data and Key Metrics Changes - The company regained compliance with NASDAQ listing requirements, strengthening its market position as it advances toward commercial operations [7] - The company anticipates a modest increase in cash use as it ramps up R&D, process optimization, and site readiness efforts in support of commercialization [13] Company Strategy and Development Direction - The company aims to build its first commercial-scale AquaRefining facility based on secured feedstock and market demand, emphasizing a disciplined approach to avoid unnecessary dilution [17][24] - The company sees a consolidating industry with fewer technically validated, financially strong recyclers, positioning itself as a key player in this evolving landscape [9][33] Management's Comments on Operating Environment and Future Outlook - Management highlighted the importance of securing commercial partnerships and feedstock before committing to facility construction, indicating a cautious yet strategic approach [17][24] - The company expects to continue advancing multiple initiatives in commercial and strategic partnerships, with updates anticipated as early as the current quarter [37] Other Important Information - The company raised approximately $4.1 million through its ATM and equity line programs during the quarter, maintaining flexibility while supporting pilot operations and commercial planning activities [11] - A total of $17.1 million in new funding was secured, providing multiple quarters of strategic runway and flexibility [5] Q&A Session Summary Question: What are the biggest gating factors to securing the first build? - Management emphasized the importance of discipline in construction timing, aligning with market demand and feedstock certainty rather than speculation [17][18] Question: How are the partnership discussions progressing? - Management noted increasing interest from OEMs and commercial partners, with deeper engagement and validation of results from pilot operations [20][21] Question: What is the company's comfort level regarding securing feedstock? - Management expressed confidence in the availability of feedstock, highlighting the need to secure bankable contracts before proceeding with facility construction [24] Question: Can you provide more details on the nickel product pathway? - Management discussed the long-term view on nickel production and the potential for deep-sea mining, emphasizing the unique capabilities of the company to produce metals for various markets [26][27]

Funding and Financial Position - Aqua Metals secured $17.1 million in new funding, including $4.1 million raised during the quarter and an additional $13 million from a leading institutional investor in October[1][7]. - The company regained compliance with NASDAQ's minimum-bid requirement, maintaining its listing and investor confidence[1][7]. - Total current assets decreased from $4.644 million as of December 31, 2024, to $3.967 million as of September 30, 2025[1][15]. - Total assets decreased from $26.365 million as of December 31, 2024, to $10.504 million as of September 30, 2025[1][15]. - The net loss for the three months ended September 30, 2025, was $3.121 million, compared to a net loss of $5.210 million for the same period in 2024[1][17]. - The company reported a basic and diluted net loss per share of $2.19 for the three months ended September 30, 2025, compared to $7.64 for the same period in 2024[1][17]. - Operating expenses totaled $3.065 million for the three months ended September 30, 2025, down from $5.211 million in the same period of 2024[1][17]. Operational Achievements - The company successfully processed 1 metric ton of lithium-iron-phosphate (LFP) cathode scrap, producing battery-grade lithium carbonate, demonstrating an economically viable process for LFP feedstock[1][7]. - Aqua Metals signed two MOUs with MOBY Robotics and Impossible Metals to explore clean refining of deep-sea polymetallic nodules, positioning the company as a potential leader in sustainable processing of emerging mineral feedstocks[1][7]. - A Letter of Intent was signed with Westwin Elements for the potential supply of 500–1,000 metric tons of recycled nickel carbonate annually, potentially worth $12 million at current market prices[1][7].

Business Operations - The company did not engage in commercial operations in 2024 or 2025, focusing instead on developing its Li AquaRefining battery recycling technology[137] - During the nine months ended September 30, 2025, the company did not earn any revenue, maintaining a focus on the pilot facility and recycling capabilities[137] - The company aims to become the first lithium-ion battery recycler in North America, aligning with U.S. government goals to retain strategic battery minerals within the domestic supply chain[119] - The company is actively working with multiple potential supply, off-take, and funding partners to determine the optimal timing and location for its first commercial facility[133] - The company plans to continue pilot operations and advance site selection for its first commercial AquaRefining facility, aiming to build a resilient, low-carbon domestic supply chain for critical minerals[151] Technology and Development - In February 2025, the company announced plans to more than double lithium carbonate output by simplifying the product set, which is expected to reduce capital expenditures and improve operating margins[124] - The company recovered its first metals from lithium batteries in January 2023 using the patent-pending Li AquaRefining process[120] - The company completed equipment installation for its first-of-a-kind lithium battery recycling facility in December 2022, utilizing electricity instead of chemical processes[120] - The company’s AquaRefining technology is designed to produce higher quality products at a lower operating cost compared to traditional recycling methods[116] Financial Performance - The company issued 833,219 shares of common stock for net proceeds of $5,921,000 during the nine months ended September 30, 2025[127] - For the three months ended September 30, 2025, plant operations expenses decreased by $1,041,000, or 64.4%, compared to the same period in 2024, primarily due to workforce reductions[138] - Research and development costs for the three months ended September 30, 2025, decreased by $70,000, or approximately 17.6%, compared to the same period in 2024, mainly due to lower payroll and related costs[139] - General and administrative expenses decreased by $612,000, or approximately 22.3%, for the three months ended September 30, 2025, primarily due to reductions in payroll and professional fees[141] - The company recognized a non-cash impairment and loss on disposal of property, plant, and equipment of $25,000 for the three months ended September 30, 2025, and $9,037,000 for the nine months ended September 30, 2025[140] - As of September 30, 2025, the company had cash and cash equivalents of approximately $3,586,000 and current liabilities of $3,459,000, resulting in a working capital of approximately $508,000[149] - The company closed a registered direct offering on October 16, 2025, raising approximately $12,000,000 in net proceeds from the sale of common stock and warrants[149] - Net cash used in operating activities for the nine months ended September 30, 2025, was $7,648,000, a decrease from $11,637,000 in the same period of 2024[153] - Net cash provided by investing activities for the nine months ended September 30, 2025, was $4,971,000, primarily from the sale of a building and equipment[154] Management Outlook - Management believes that the company's capital resources remain insufficient to sustain operations for at least the next twelve months, indicating substantial doubt regarding its ability to continue as a going concern[150]

Core Insights - Aqua Metals, Inc. has secured $17.1 million in new funding, which will support its strategic partnerships and commercial plans for lithium battery and critical minerals recycling [1][5]. Financial Performance - For the quarter ended September 30, 2025, Aqua Metals raised $4.1 million and an additional $13 million from a leading institutional investor in October, providing significant runway for engineering and permitting efforts [5]. - The company reported a net loss of $3.121 million for Q3 2025, compared to a net loss of $5.210 million in Q3 2024, indicating an improvement in financial performance year-over-year [17]. Market Landscape - The global lithium-battery-recycling sector is experiencing consolidation due to scale and cost challenges faced by early entrants, while demand remains strong with EV sales growing 11% year-over-year [3]. - Market forecasts predict that black mass production in the US will exceed 250,000 metric tons annually by 2030, with an estimated value of critical minerals at $1.2 billion at current prices [4]. Strategic Partnerships - Aqua Metals has signed two MOUs with MOBY Robotics and Impossible Metals to explore clean refining of polymetallic nodules, positioning the company as a potential leader in sustainable processing of deep-sea minerals [5]. - A Letter of Intent was signed with Westwin Elements for the potential supply of 500–1,000 metric tons of recycled nickel carbonate annually, which could represent approximately $12 million in annual contract value [5]. Technological Advancements - The company successfully processed 1 metric ton of lithium-iron-phosphate (LFP) cathode scrap, producing battery-grade lithium carbonate, and remains the only recycler demonstrating an economically viable process for LFP feedstock [5]. - Aqua Metals has modeled a 50/50 NMC-LFP commercial facility that shows profitability at current metals pricing, indicating strong potential for future operations [5]. Compliance and Engagement - Aqua Metals has regained compliance with NASDAQ's minimum-bid requirement, which is crucial for maintaining its listing and investor confidence [5]. - The company participated in The Battery Show North America 2025 and the 2025 Battery Recycling Workshop in China, enhancing its commercial engagement opportunities [5].