Greenwave’s Scrap App expands in auto recycling sector

CHESAPEAKE, Va. - Greenwave Technology Solutions, Inc. (NASDAQ:GWAV), a key player in the metal recycling industry with a market capitalization of $9.06 million, has announced the expansion of its Scrap App platform, now backed by one of the largest junk car buyers in the United States. This partnership is set to propel Scrap App’s presence into 27 new markets, building on its already established footprint. According to InvestingPro analysis, the company maintains a healthy current ratio of 1.52, indicating solid short-term financial stability.

The Scrap App, which utilizes artificial intelligence to automate the buying process of junk cars, has recently launched in Charlotte, NC, Winston-Salem, NC, and Columbia, SC. This move complements the platform’s existing market coverage. Greenwave’s strategy involves weekly market expansions, leveraging AI to enhance operational efficiency and remain competitive in the $32 billion U.S. auto recycling industry.

The company’s proprietary AI Operator was deployed on January 27, 2025, introducing real-time, AI-generated quotes for vehicles, automated scheduling for vehicle pickups, and autonomous customer interactions. Developed with an investment of approximately $20,000 from internally generated cash flows, this technology is expected to lead to significant annual cost savings and profit margin improvements for Greenwave, which currently operates at a gross margin of 23.54%. InvestingPro data reveals the company is currently undervalued, though investors should note its rapid cash burn rate. Subscribers can access 11 additional key insights about GWAV on the platform.

Greenwave, headquartered in Chesapeake, VA, operates 13 metal recycling facilities that supply domestically-sourced metals to major steel mills and industrial partners. The company’s role extends to infrastructure projects and national security, with operations spanning Virginia, North Carolina, and Ohio.

This expansion comes as Greenwave aims to disrupt the fragmented auto recycling sector, where a leading competitor reported revenues of $130.7 million for the fiscal year 2024. With its technology-driven approach and current annual revenue of $33.92 million, Greenwave is poised to capture a substantial share of the market and accelerate revenue growth. InvestingPro subscribers can access detailed financial analysis, including growth projections and comprehensive valuation metrics, to make more informed investment decisions.

The information in this article is based on a press release statement. Greenwave’s forward-looking statements reflect plans and expectations but are subject to significant risks, uncertainties, and changes in circumstances, which may cause actual results to differ from those anticipated.

In other recent news, Greenwave Technology Solutions has made several strategic moves to bolster its position in the metal recycling industry. The company recently raised its revenue forecast for fiscal year 2025 to $47-50 million, anticipating growth of 10-20% due to new tariffs on imported steel, aluminum, and copper. In addition, Greenwave secured an exclusive recycling contract in Virginia Beach, which is expected to generate over $500,000 in annual revenues.

The company has also announced a $4 million push into the rare earth metals market, which includes the sale of over 7.5 million shares of common stock through a securities purchase agreement with institutional and accredited investors. Dawson James Securities Inc. is serving as the sole placement agent for this transaction.

Greenwave is also ramping up its initiative to reclaim rare-earth metals from end-of-life products in response to global supply chain disruptions. This move is intended to meet the increasing demand for these metals, which are essential for manufacturing semiconductors, solar panels, and electric vehicle batteries. These recent developments indicate the company’s proactive approach to navigating the changing dynamics of the metal recycling industry.

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