Benzinga | Jul 29, 2021 08:10AM EDT

Aqua Metals Signs Definitive Agreement With ACME Metal Enterprise To Deploy AquaRefining Technology In Taiwan; Terms Not Disclosed

Aqua Metals, Inc. (NASDAQ:AQMS) ("Aqua Metals" or the "Company"), which is reinventing metals recycling with its AquaRefining(tm) technology, today announced it has signed a definitive agreement with ACME Metal Enterprise Co., Ltd. (ACME) to deploy and license AquaRefining equipment at its facility in Keelung, Taiwan. While both companies signed a Letter of Intent ("LOI") on July 1, 2021, that provided 60 days to reach a definitive agreement, the contract was signed in less than a month. The agreement includes terms for licensing to ACME and working with ACME to consider licensing AquaRefining to other parties in Taiwan. The agreement also defines a phased deployment of AquaRefining technology and provisions for ACME to work with Aqua Metals and one or more large battery manufacturers to develop a second methodology to produce oxide directly from AquaRefined material, which can significantly improve economic costs, safety, environmental impact and streamline the link between battery recycling and new battery manufacturing.



ACME currently refines lead bullion into lead alloys for sale to global battery manufacturers. These relationships will enable ACME to utilize AquaRefining as the only proven green method for recycling lead in the largest and fastest growing lead recycling market in the world. Aqua Metals intends to begin shipping Aqualyzers and supporting equipment to ACME during the next quarter for phase one of the deployment, which is expected to begin operating by the fourth quarter of 2021. The Aqualyzers will enable ACME to produce ultrapure lead metal in Taiwan with vastly improved emissions and worker safety. The partnership between Aqua Metals and ACME includes joint development of a process for converting the ultra-high purity AquaRefined briquettes into lead oxide utilizing a ball mill that ACME will have rights to throughout Taiwan. Aqua Metals announced in January 2021 that it had developed a process for converting briquettes into lead oxide through the Barton pot method (melting). With the addition of the ball mill process (grinding), AquaRefining will have the potential to produce oxide using the only two industry-standard processes available.

"ACME's rapid progression from an LOI to a signed contract as our first licensee and a partner in developing the ball mill oxide process is a powerful vote of confidence for our patented AquaRefining process," stated Steve Cotton, Aqua Metals President and CEO. "The fact that we are the only commercially proven sustainable alternative to smelting for recycling lead has created a robust pipeline, and we are very busy working through additional global opportunities."

Linus Lu, Managing Director, ACME Metal Enterprises Co., Ltd., added, "We are committed to leading the market as the first green lead recycler in Asia, and we know that this partnership with Aqua Metals puts us in a very competitive position. We are now uniquely qualified to expand our business with large battery manufacturers who understand the immediate need to embrace new innovations that drive towards net zero emissions and improve worker safety. We look forward to working with Aqua Metals to be a leader in transforming the lead recycling and battery manufacturing industry in Asia."

The specific financial terms of the agreement will remain proprietary for commercial and competitive reasons.