Investing.com - Ace Green Recycling has secured a multi-year material supply deal with trading firm OM Commodities, as the sustainable battery recycling technology provider advances its plans to go public via a merger with a blank-check company.
In a statement to Investing.com, Ace, which has its North American headquaters in Houston, Texas, said OM will supply it with at least 30,000 metric tons of lead scrap annually for at least 15 years.
Ace added that it expects to recycle these materials at a planned flagship facility in Texas, noting that production of the plant is tipped to begin in 2026. The group will have the option to obtain more supply from OM, while the two are also in active discussions over future lithium battery recycling collaborations.
According to Ace, there are more than 1.5 million metric tons of lead battery scrap available for recycling in the U.S., creating a "critical gap in smelter capacity to keep valuable lead material within the domestic supply chain." The firm’s technology aims to replace legacy smelting operations, it said.
Wednesday’s announcement comes as Ace, whose systems currently operate in India and Taiwan, is pushing to float its shares on the Nasdaq stock exchange in 2025 via a combination with New York-based special purpose acquisition vehicle Athena Technology Acquistion Corp. II, or ATAC II.
On Tuesday, the companies filed a registration statement with U.S. securities regulators, which CEO Nishchay Chadha said marked an "important step" in Ace’s drive to go public.
“Ace [...] continues to advance both our plans for our flagship project in Texas and to list on Nasdaq, as we aim to solve a critical need in the United States -- environmentally friendly lead recycling solutions in the near-term and lithium solutions in the future," Chadha told Investing.com.
"With geopolitical tailwinds at our back for our technology and business model, Ace’s solutions are strategically positioned to play a key role in helping the United States re-shore its domestic battery materials supply chain."
Ace and ATAC II, who previously entered into a tie-up agreement in early December, expect the merger to be completed in the second half of this year, subject to customary closing conditions. Once finished, Ace’s common stock is anticipated to trade on the Nasdaq under the ticker "AGXI".