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RENO, Nev. - Aqua Metals, Inc. (NASDAQ: NASDAQ:AQMS), currently trading at $1.77 and showing signs of being undervalued according to InvestingPro analysis, has announced the production of the first cathode active material (CAM) derived entirely from domestically sourced, recycled nickel, marking a significant step in the U.S. towards a sustainable and secure battery supply chain. Despite the company’s market capitalization of just $12.6 million and challenging stock performance, with shares down over 80% in the past year, this development represents a potential turning point. Utilizing its proprietary AquaRefining™ technology, the company has recovered high-purity nickel from used lithium-ion batteries and manufacturing scrap, refining it into battery-grade nickel nitrate, a crucial precursor for advanced cathode production.
A domestic CAM manufacturing partner of Aqua Metals, employing a low-carbon process, transformed the nickel nitrate into battery-grade CAM. Currently, a leading lithium battery manufacturer is evaluating this CAM, with initial tests showing positive results that align with industry-standard specifications. The samples are advancing through the validation process, with further testing planned to confirm long-term performance metrics.
This development is critical as the U.S. lithium battery industry, expected to exceed 1.2TWh of annual cell production capacity by 2030, still relies heavily on imported raw materials like nickel, cobalt, and manganese. InvestingPro data reveals that while the company faces current challenges with a weak financial health score and rapid cash burn, two analysts have recently revised their earnings expectations upward for the upcoming period. Get access to 15+ additional ProTips and comprehensive analysis with an InvestingPro subscription. Establishing a domestic recycling loop for these materials is crucial for reducing foreign dependency, minimizing supply chain disruptions, and supporting sustainability initiatives of automakers and battery producers. Moreover, domestically produced CAM may qualify for federal incentives under the Inflation Reduction Act (IRA), bolstering America’s position in the global energy transition.
The production process touted by Aqua Metals is estimated to reduce the carbon footprint of CAM manufacturing by 87% compared to sourcing from China. The AquaRefining™ method offers an alternative to traditional metal refining, which typically involves polluting furnaces and hazardous chemicals, by using electricity-powered electroplating to recover valuable metals with higher purity and less waste.
Aqua Metals and its CAM manufacturing partner are committed to furthering sustainable CAM production. By demonstrating the commercial viability of a circular supply chain for battery materials, the company aims to scale this solution to meet the increasing demand for environmentally friendly, high-performance battery components.
The press release emphasized that this milestone showcases Aqua Metals’ ability to reclaim and repurpose critical minerals entirely within the United States, contributing to energy security and supporting the clean energy economy. With the company’s next earnings report due in just 5 days, investors will be watching closely to see how this development impacts its financial trajectory. InvestingPro subscribers can access the complete financial health analysis, Fair Value estimates, and detailed Pro Research Reports that provide actionable intelligence for smarter investing decisions. The information provided is based on a press release statement from Aqua Metals.
In other recent news, Aqua Metals, Inc. has announced several significant developments aimed at bolstering its operations and financial strategy. The company has achieved key operational milestones at its pilot facility, demonstrating high recovery rates for lithium, cobalt, and nickel using its proprietary technology. Aqua Metals has successfully produced over 600 pounds of battery-grade lithium carbonate, with recovery rates exceeding 99%. This progress is supported by a $1.5 million bridge loan, partially funded by management and board members, to sustain momentum as the company pursues long-term financing.
Additionally, Aqua Metals plans to more than double its production of battery-grade lithium carbonate at its upcoming Sierra ARC recycling campus. This strategic shift aims to accelerate revenue growth and enhance profit margins, with a focus on producing Mixed Hydroxide Precipitate alongside lithium carbonate. The company is also engaging with potential financial backers and partners to align with its accelerated commercialization plan.
In an effort to strengthen its board, Aqua Metals has appointed Steve Henderson and Eric Gangloff as new directors, bringing extensive experience in automotive chemicals and financial strategy. These appointments are expected to enhance the company’s commercial partnerships and financing solutions. Aqua Metals continues to position itself as a significant supplier of low-carbon, battery-grade materials, aligning with the growing demand for electric vehicles and energy storage systems.
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