Aqua Metals Secures $33M Loan for Commercial-Scale Lithium Battery Recycling Plant

Nevada-based Aqua Metals (NASDAQ: AQMS) has taken a critical step toward launching its first commercial-scale lithium battery recycling operation. In a press release on May 15, the company announced it has signed a non-binding term sheet with “one of the world’s largest privately held companies” for a $33 million credit facility. This funding will complete phase one of the company’s Sierra AquaRefining Campus (ARC).

The signing of the agreement follows Aqua Metals' successful equity raise of approximately $8 million, which not only strengthens the company’s balance sheet but also serves as an essential pre-condition for the lender. The loan agreement comes after a thorough two-month review by the lender, examining the company’s financial health, revenue potential, and offtake and supply agreements.

An independent engineering report and lifecycle analysis conducted by ICF International has validated the significant reductions in waste and greenhouse gas emissions achievable through Aqua Metals' innovative lithium battery recycling technology. The report underscores the environmental benefits of the company's first-of-its-kind process.

While the loan agreement is non-binding and subject to due diligence and negotiation of a final agreement, the lender's identity remains confidential until a final agreement is signed. The lender is reportedly investing heavily in a global portfolio of decarbonization technologies.

With the forthcoming $33 million loan, Aqua Metals will have the resources needed to complete phase one of the Sierra ARC. This phase involves renovating and outfitting a 20,000-square-foot building into a lithium battery recycling plant capable of processing 3,000 tons per year of feedstock material recovered from spent lithium-ion batteries and manufacturing scrap.

The mineral outputs from the phase one facility—lithium carbonate, nickel, cobalt, and other critical metals—will be equivalent to approximately 30,000 average-sized EV battery packs. Following the completion of the first phase, Aqua Metals plans to scale up production at the facility to more than 10,000 tonnes per year, aiming to establish a circular supply chain for critical minerals essential for the growing battery manufacturing industry in the United States.

Not only will the Sierra ARC be Aqua Metals' first commercial-scale facility, but it will also be North America’s first sustainable lithium battery recycling operation. The facility is scheduled to enter production this year.

This investment will enable Aqua Metals to enhance its operational capacity and continue to develop its proprietary AquaRefining™ technology, which uses electricity to extract valuable metals from spent lithium and EV batteries, in contrast to traditional, pollutant-heavy recycling methods. This electrified process significantly cuts CO2 emissions and chemical waste pollution, contributing to climate change mitigation and ecosystem preservation.

“This agreement marks a significant milestone in securing the financial resources necessary to complete the Sierra ARC, which is pivotal to our strategy of establishing a closed-loop supply chain for battery recycling,” said Aqua Metals CEO Steve Cotton. “This partnership will not only support our financial stability but also will reinforce our commitment to innovation and sustainability in the lithium battery recycling sector.”