Aqua Metals Enters Into a Term Sheet to Acquire Leading Energy Storage Company Lion Energy

Core Viewpoint - Aqua Metals, Inc. has announced its intention to acquire Lion Energy, LLC, aiming to create a comprehensive platform that integrates energy storage products, energy management software, recycling, and battery materials, thereby enhancing its position in the expanding energy and virtual power plant markets [1][2][3] Company Overview - Aqua Metals is a pioneer in battery metals recycling and refining, utilizing proprietary AquaRefining™ technology to deliver sustainable energy storage solutions [16] - Lion Energy, based in Utah, has established a significant presence in the U.S. energy storage market, achieving approximately $50 million in revenue in 2025 [5][6] Strategic Rationale - The acquisition is expected to add meaningful revenue to Aqua Metals while expanding its participation in the rapidly growing energy storage market, which is driven by increasing demand for AI data centers and reliable distributed power solutions [3][7] - Lion Energy's vertically integrated energy software and systems platform will enable Aqua Metals to support advanced use cases such as demand response and fleet-level orchestration [6][9] Market Dynamics - The U.S. energy storage market is experiencing rapid growth, with battery storage capacity increasing by 59% annually, positioning the combined entity to capture market opportunities driven by electrification and decentralized power needs [7][9] - Utility-scale deployments are projected to rise by approximately 66% in 2024, indicating strong demand for energy storage solutions [8] Transaction Details - The acquisition will be conducted as an all-stock transaction valued at approximately $25.8 million, with potential additional shares based on Lion Energy's performance post-transaction [11][12] - Following the acquisition, Lion Energy will operate as a wholly-owned subsidiary of Aqua Metals, maintaining its current executive and management team [13] Future Outlook - The combined company is expected to advance across three growth areas: energy storage systems, battery manufacturing, and critical minerals recycling, aligning with the increasing focus on domestic supply chains [9][10]