Aqua Metals aims to double lithium carbonate production

RENO, Nev. - Aqua Metals, Inc. (NASDAQ: NASDAQ:AQMS), a company specializing in sustainable lithium battery recycling, has announced a strategic shift to expedite revenue growth and margin improvement at its upcoming commercial-scale AquaRefining™ facility. According to InvestingPro data, the company, currently valued at $12.55 million, appears undervalued based on Fair Value analysis. The company will prioritize the production of battery-grade lithium carbonate, aiming to more than double its initial output targets.

The Sierra ARC recycling campus, located at the Tahoe-Reno industrial center, will also produce Mixed Hydroxide Precipitate (MHP), a valuable nickel and cobalt product, along with copper and manganese. This focus is expected to enable Aqua Metals to generate revenue more quickly, validate its technology at scale, and foster industry partnerships. With InvestingPro reporting significant cash burn and a weak financial health score of 0.93, this revenue acceleration strategy appears crucial. The company’s approach aligns with its broader vision of scaling up to high-purity metal refining in the future.

Aqua Metals has successfully produced battery-grade lithium and high-purity nickel and cobalt at its pilot facility. By emphasizing lithium carbonate and MHP production, the company anticipates reducing the remaining capital required to complete the Sierra ARC and positioning itself as a significant supplier of domestic, low-carbon, battery-grade materials.

Steve Cotton, CEO of Aqua Metals, stated that the company’s market-driven strategy should allow for faster scaling and revenue generation, thereby strengthening its position in the domestic critical minerals supply chain. The scalable nature of AquaRefining™ technology supports the company’s long-term goal to refine full metal, which remains a future objective.

The updated strategy reflects Aqua Metals’ adaptive response to market conditions while maintaining its commitment to long-term objectives. With a current EBITDA of -$20.68 million and its next earnings report due February 20, investors can access detailed financial analysis and 16 additional ProTips through InvestingPro’s comprehensive research reports. The company is actively discussing partnerships with feedstock suppliers and off-take partners to align with its accelerated commercialization plan.

Aqua Metals anticipates providing updates on its engagements with financial backers, feedstock supply, and off-take partners later in the first quarter. The company is pioneering a sustainable recycling solution for materials critical to energy storage and electric vehicle manufacturing supply chains, utilizing its patented AquaRefining™ technology. This low-emissions, closed-loop technology aims to recover valuable metals and materials from spent batteries with higher purity and minimal waste.

This news article is based on a press release statement from Aqua Metals.

In other recent news, Aqua Metals, known for its innovative lithium battery recycling technology, has made significant strides in its operations. The company recently announced key operational milestones at its pilot facility, including high recovery rates and the production of battery-grade lithium carbonate, nickel, and cobalt. Aqua Metals reported over 99% recovery rates for lithium, cobalt, and nickel from black mass, using its proprietary leaching process and recycled solvent. This achievement has been noted for its potential to lower recycling costs and minimize waste.

To support its operations, Aqua Metals also secured a $1.5 million bridge loan, over 50% of which was funded by management and board members. This financial step is intended to maintain momentum as the company finalizes strategic long-term financing, expected to be resolved in Q1 2025. The funding will be used to advance the buildout of the Sierra ARC commercial facility and support the company’s growth.

In its third quarter financial results call, Aqua Metals reported a net loss of approximately $5.2 million, but remains optimistic about securing future funding and partnerships. The company is also in negotiations for multiple term sheets concerning capital commitments and commercial supply agreements. Despite the financial setback, Aqua Metals continues to make progress, with its pilot facility achieving significant milestones in production purity and capacity. These are recent developments in Aqua Metals’ operations and financial status.

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