EcoPro Company, a South Korean producer of cathode materials used in batteries for electric vehicles (EVs) and other applications, announced that it has completed the first phase of its investment in its battery raw materials project on the Indonesian island of Sulawesi. EcoPro said it has completed a KRW 700 billion (US$ 502 million) first-phase investment in four nickel smelters, helping it secure a stable supply of the key battery material. The investment gives the company a supply of 28,500 tons of mi ...

Financial Data and Key Metrics Changes - The company ended the quarter with total cash of approximately $1.6 million [15] - Net loss for the three months ended March 31, 2025, was approximately $8.3 million, or a negative $0.03 per share, compared to a net loss of $5.5 million, or a negative $0.05 per share for the same period in 2024 [19] - Plant operations decreased approximately $1.5 million, or 67.2%, compared to the same period in 2024, primarily due to reductions in payroll and related costs [17] Business Line Data and Key Metrics Changes - The company achieved key technical milestones, including product line expansion with initial samples of nickel carbonate and mixed hydroxide precipitate [4] - A successful engineering analysis and lab demonstration for lithium recovery from LFP batteries was completed, which could double lithium carbonate output [5][6] - General and administrative expenses decreased by approximately $619,000, or 27.2%, primarily due to payroll reductions [18] Market Data and Key Metrics Changes - The company is adapting its strategy to align with current market conditions characterized by lower lithium prices and tighter capital markets [7] - The industry is experiencing a phase of consolidation and increased partnerships as companies navigate challenging market conditions [33][58] Company Strategy and Development Direction - The company is focused on building a low-cost, resilient domestic battery materials supply chain and adapting its product portfolio to market needs [3][11] - A strategic decision was made to sell property to retire debt and generate cash reserves, allowing for evaluation of more cost-efficient locations [7][15] - The company aims to build its first commercial arc while actively engaging with potential supply, offtake, and funding partners [9][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to survive and thrive in the evolving critical minerals industry, emphasizing the importance of adaptability [26][34] - There is optimism regarding future government support for domestic supply chains, although clarity on policy and funding is still pending [42][43] Other Important Information - The company is transitioning leadership with Eric West taking over as CFO, ensuring continuity and stability during the transition [10][12] - The company is actively engaging with potential partners to test the quality of new materials produced [48] Q&A Session Questions and Answers Question: Can you walk me through the Sierra Arc sale process and how much runway it gives you? - Management highlighted that selling the Sierra Arc allows for significant savings and provides meaningful cash runway to develop commercial relationships [26][28] Question: Has there been an uptick in customer inbounds due to recent tariff announcements? - Management noted increased engagement with various industry players as companies seek to navigate the current market dynamics [32][33] Question: Can you discuss the opportunity related to product line expansion and LFP recycling? - Management emphasized that advancements are driven by market responsiveness and optimization to improve plant economics [37][39] Question: What is the status of government discussions regarding domestic supply chains? - Management confirmed ongoing engagement with government agencies, with expectations for more clarity on policy and funding in the coming months [42][43]

Financial Data and Key Metrics Changes - The company ended the quarter with total cash of approximately $1.6 million, with plans to retire all debt through the sale of the Sierra Arc asset, which has a carrying value of approximately $9.3 million net of depreciation [15][16] - The net loss for the three months ended March 31, 2025, was approximately $8.3 million, or a negative $0.03 per share, compared to a net loss of $5.5 million, or a negative $0.05 per share for the same period in 2024 [19] - Plant operations decreased approximately $1.5 million, or 67.2%, compared to the same period in 2024, primarily due to workforce reductions and decreased professional fees [17][18] Business Line Data and Key Metrics Changes - The company achieved key milestones in product line expansion, including the production of initial samples of nickel carbonate and mixed hydroxide precipitate (MHP) [4][5] - A breakthrough in lithium recovery from LFP batteries was completed, which can handle a blend of 50% NMC and 50% LFP input, effectively doubling lithium carbonate output [5][6] Market Data and Key Metrics Changes - The company is adapting its strategy to align with current market conditions characterized by lower lithium prices and uncertainty in the industry [7][10] - There has been an increase in engagement with various industry players, indicating a phase of consolidation and partnerships within the critical minerals sector [34][58] Company Strategy and Development Direction - The company is focused on building a low-cost, resilient domestic battery materials supply chain and is continuously advancing its technology to meet market needs [3][10] - A strategic decision was made to sell property to retire debt and generate cash reserves, allowing for evaluation of more cost-efficient locations for future development [7][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to survive and thrive in the evolving critical minerals industry, emphasizing the importance of adaptability and resilience [26][59] - There is optimism regarding future government support for domestic supply chains, although specific feedback from government agencies is still pending [43][44] Other Important Information - The company is transitioning leadership with Eric West taking over as CFO, while Judd Merrill will assist during the transition period [9][12] - The company is actively engaging with potential strategic financial partners aligned with its long-term strategy [20][56] Q&A Session Summary Question: Can you walk me through the Sierra Arc sale process and how much runway it gives you? - Management explained that selling the Sierra Arc allows for significant savings and provides cash runway to develop commercial relationships, emphasizing a shift in focus to build facilities closer to supply sources [24][26][30] Question: Has there been an uptick in customer inbounds due to recent tariff announcements? - Management noted increased engagement with various industry players, indicating a positive trend in customer discussions and partnerships [32][34] Question: Can you discuss the opportunity related to product line expansion and LFP recycling? - Management highlighted that advancements are driven by market responsiveness and optimization, aiming to improve plant economics and enhance off-take opportunities [36][40] Question: What is the status of government discussions regarding domestic supply chains? - Management confirmed ongoing engagement with government agencies, with expectations for clarity on policy and funding support in the coming months [42][44] Question: Can you elaborate on near-term and long-term financing opportunities? - Management discussed plans to retire existing debt and the potential for project financing, emphasizing the importance of partnerships for future growth [54][56]

Financial Data and Key Metrics Changes - The company ended the quarter with total cash of approximately $4.1 million, higher than the previous quarter, indicating management's focus on maintaining cash position [27] - The net loss for the 12 months ended December 31, 2024, was approximately $24.6 million or a negative $3.83 per basic and diluted share, compared to a net loss of $24 million or a negative $5.10 per basic and diluted share for 2023 [34] - Interest expense increased to $1.1 million for the year ended December 31, 2024, primarily due to a change in fair value of the warrant liability [33] Business Line Data and Key Metrics Changes - Plant operations increased approximately $931,000 or 15% for the 12 months ended December 31, 2024, driven by a rise in payroll and related fees due to hiring additional staff [31] - The company recognized an impairment of approximately $2.6 million related to vendor equipment deposits for equipment no longer needed under the revised plan [29] Market Data and Key Metrics Changes - The company produced more than 600 pounds of battery-grade lithium carbonate at purity levels exceeding 99.5% during a December endurance run, showcasing its capability in the market [11] - The company is actively engaging with potential partners and customers globally, with positive feedback on the samples provided to multiple cathode active material producers [12] Company Strategy and Development Direction - The company aims to scale operations through flexible, partner-centric models that minimize capital intensity while maximizing impact [10] - The commercialization strategy has evolved to prioritize co-location opportunities and toll processing models to reduce logistics costs and accelerate time to revenue [15] - The partnership with 6K Energy is a flagship example of forming commercial alliances that support closed-loop battery material supply chains [17] Management's Comments on Operating Environment and Future Outlook - Management emphasized the importance of adapting to the macroeconomic environment, which has been challenged by falling battery metal prices and tight capital markets [8] - The company is focused on translating technology success into commercial deployment, securing strategic funding, and continuing to produce battery-grade recycled materials [24] - Management expressed confidence in the company's ability to lead in clean battery metal recovery with a flexible capital-efficient plan in motion [26] Other Important Information - The company raised approximately $15 million during the year, with over two-thirds of the funding coming from AquaMetal's leadership and board [19] - The company was selected by the U.S. Department of Energy for the ACME Revive program, highlighting its role in supporting domestic critical mineral recovery [22] - The company expanded its board of directors, adding experienced leaders from the battery and finance sectors [23] Q&A Session Summary Question: Long-term financing plans and options - Management is focused on project financing and debt financing, with ongoing discussions with lenders [42][43] Question: Updated plan for the Sierra facility - The facility is move-in ready, with additional buildings planned to increase processing capacity from 3,000 tons to 7,000 tons [47][49] Question: Discussions on offtake agreements and co-locations - The company has been able to produce representative battery-grade materials, which has facilitated ongoing discussions with potential partners [55][57] Question: Visits from industry leaders and government agencies - Management has hosted various government officials and is engaging with the new administration regarding funding opportunities for critical minerals [59][61]