Aqua Metals and 6K Energy Sign Strategic Supply Agreement to Establish North America’s First Sustainable Lithium Battery Supply Chain

Agreement includes Aqua Metals supply of critical battery metals from the Sierra ARC to the 6K PlusCAM facility commencing in 2024

RENO, Nev. and JACKSON, Tenn., March 26, 2024 (GLOBE NEWSWIRE) -- Aqua Metals (NASDAQ: AQMS) and 6K Energy announced the signing of a strategic supply agreement today, establishing North America's first sustainable circular supply chain for the critical minerals essential for manufacturing lithium-ion batteries. Aqua Metals will deliver sustainably recycled battery materials from its Sierra ARC facility in Reno, NV for 6K Energy to manufacture cathode active material (CAM) with a low carbon footprint at its PlusCAM facility in Jackson, TN.

This supply agreement marks a pioneering step in building North American battery manufacturing capacity that will qualify for domestic content incentives under the Inflation Reduction Act, aligning with the United States’ efforts to expand manufacturing capabilities, establish resilient supply chains, and reduce carbon emissions. Based on today’s metals prices, the materials supplied under this off-take agreement have an estimated value of more than $50 million annually once 6K Energy’s PlusCAM and Aqua Metals’ Sierra ARC facilities reach capacity.

Steve Cotton, President and CEO of Aqua Metals, emphasized the transformative nature of this collaboration: "Our strategic agreement with 6K Energy represents a pivotal moment in our mission to build a more sustainable battery ecosystem from the ground up here in North America. Together, we are demonstrating the viability and economic benefits of closed-loop recycling for critical battery metals and laying the foundation for the US to claim leadership in this rapidly accelerating global industry."

Starting in 2024, Aqua Metals will supply 6K Energy with sustainably recycled critical minerals, ramping up to provide 30% of the nickel and lithium carbonate needed for 6K Energy's PlusCAM facility. The commitment to utilize up to 30% recycled feedstock presents a unique value proposition, allowing EV and lithium battery manufacturers to benefit from low-carbon, low-cost, and domestically produced cathode materials for the first time.

6K Energy, leveraging its UniMelt manufacturing process, stands at the forefront of low-carbon battery material production. "This agreement extends beyond a supply contract; it's a partnership aimed at redefining industry standards for environmental responsibility and cost-efficiency in battery material production. 6K Energy will be the first in North America to incorporate large quantities of sustainably recycled metals into our advanced battery materials using our low-cost, low-carbon footprint CAM production technology," stated Sam Trinch, President of 6K Energy.